KUALA LUMPUR (March 26): The Ministry of Transport has unveiled a framework for interested parties to apply for a motor vehicle inspection licence starting June 1, which would pave the way to breaking a current monopoly held by Puspakom Sdn Bhd.

The detailed guidelines will be made available by April 15, and a briefing session with stakeholders on conditions required to apply for the licence is scheduled on April 23, said Transport Minister Anthony Loke Siew Fook in a statement on Tuesday.

Applicants are required to be companies with a minimum paid-up capital of RM10 million and equipped with working capital of at least RM5 million to ensure sustainability of operations, said Loke.

Licence holders are only allowed to carry out inspections under the Road Transport Act 1987, and are not allowed to offer services that involve vehicle repair, modification, sale of spare parts, or sale of vehicles itself or any related transactions, to avoid conflict of interest.

In terms of locations, Loke said it will be solely determined by the Transport Ministry, and every licence-offering will come with a pair of locations — one each for urban and rural areas.

“Applicants are required to develop and operate both locations simultaneously. The list of locations will be made known during a briefing session,” he said.

After an applicant is deemed eligible, the Transport Ministry and Road Transport Department (JPJ) will provide an interim approval that spans 24 months, as a period of preparation and development of the service offerings, said Loke.

“Any party that within this period of time is found to have failed to complete all the preparation processes will have the interim approval revoked and will not be granted a licence,” he said.

Parties that successfully complete all the development processes and is certified by JPJ to be capable of starting operations will be granted a licence to carry out the function of motor vehicle inspection for a maximum period of 10 years, with the ability to continue for another period to be determined later.

During the entire licensed period, successful applicants are required to pay a deposit of RM250,000, or equivalent to 5% of the minimum working capital.

Puspakom, a wholly owned unit of DRB-Hicom Bhd, has been the only comprehensive national vehicle inspection company appointed by the Malaysian government since 1994.

Puspakom’s concession is slated to expire on Aug 31, 2024.

Parties interested to attend the briefing on details of the vehicle inspection licence application on April 23, can register their attendance at https://bit.ly/pemeriksaankenderaan.