Vehicle inspection firm selection follows procurement procedures - MOT

The selection process for vehicle inspection service companies for motor vehicle inspection centres was carried out based on procurement and financial procedures to ensure high quality, transparent, and competitive services.

The Transport Ministry explained that all 12 companies that submitted proposals in the request for proposal process before the Oct 31 closing date were evaluated according to the procedures set out in the Treasury Circular 2.8.

"The selection of companies is based on the guidelines set under the Road Transport Act 1987 (Act 333), including the eligibility requirements, procedures, rules and standards that have been posted on the Transport Ministry website and the Road Transport Department since April 23, 2024," it said in a statement.

Among the main conditions the companies must meet includes being registered and licensed with the Companies Commission as well as local authorities and be wholly owned by a local company in the category of Private Limited or Berhad.

The company must have a paid-up capital of at least RM10 million throughout the service period, have a minimum working capital of RM5 million per annum and possess a standard compliance certificate from the Standards Department within two years from the date of the offer.

"The company must provide a minimum deposit or bond of 5 percent of the working capital value, obtain a Certificate of Approved Facilities from the Environment Department and be registered as a member of the International Motor Vehicle Committee within two years from the date of licensing," the ministry added.

According to the statement, the assessment conducted by the Motor Vehicle Inspection Centres Licensing and Evaluation Committee found that the three selected companies fully met the conditions.

Location

In terms of location selection, the ministry said it and the RTD determined it based on the concept of “cross subsidy” to ensure a balance of services between high-capacity and low-capacity areas.

"This concept prevents any company from simply choosing high-volume locations and ensures access to vehicle inspection services to all consumers nationwide," it added.

The selected companies must also 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 will not involve any financial implications for the government. If the company fails to meet the requirements within the stipulated period, the operating license will not be granted," the ministry said.

- Bernama

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