Kuala Lumpur: The selection process for vehicle inspection service companies at Motor Vehicle Inspection Centres (PPKM) is carried out based on procurement and financial procedures to ensure high-quality, transparent, and competitive services.
According to BERNAMA News Agency, the Ministry of Transport (MOT) informed that all 12 companies that submitted proposals in the Request For Proposal (RFP) process before the closing date of October 31 have been evaluated according to the procedures set out in the Treasury Circular 2.8. The selection of companies is based on the guidelines under the Road Transport Act 1987 (Act 333), including the eligibility requirements, procedures, rules, and standards posted on the MOT website and the Road Transport Department since April 23, 2024.
Among the main conditions that must be met by companies participating in the RFP process are registration and licensing with the Companies Commission of Malaysia and local authorities. Additionally, the company must be wholly owned by a local entity in the category of Private Limited or Berhad. Further requirements include a paid-up capital of at least RM10 million throughout the service period, a minimum working capital of RM5 million per annum, and possession of a standard compliance certificate from the Department of Standards Malaysia within two years from the date of the offer.
The company must also provide a minimum deposit or bond of 5 percent of the working capital value, obtain a Certificate of Approved Facilities (KYDL) from the Department of Environment, and be registered as a member of the International Motor Vehicle Committee (CITA) within two years from the date of licensing.
The statement from MOT revealed that the assessment conducted by the PPKM Licensing and Evaluation Committee found that the three selected companies fully met the conditions set. In terms of location selection, MOT said that the determination was made by MOT and JPJ based on the concept of ‘cross subsidy’ to ensure a balance of services between high-capacity and low-capacity areas, preventing any company from choosing only high-volume locations and ensuring access to vehicle inspection services nationwide.
Furthermore, the selected companies must ensure the provision of infrastructure, equipment, manpower, and other requirements within 24 months before the operating licence is issued, in line with the offer letter issued last Friday. This approach, as stated, will not involve any financial implications for the government. Failure to meet the requirements within the stipulated period will result in the operating license not being granted.