Loke: Automotive companies can also apply for vehicle inspection licences

Summary

• Automotive companies can apply for vehicle inspection licences but must avoid conflicts of interest, such as inspecting their own vehicles. They must also establish new companies for this purpose.

• Transport Minister Anthony Loke says this in response to criticism about the apparent inexperience of the three new companies appointed to conduct vehicle inspections.

Companies in the automotive industry can apply for vehicle inspection licences too should they choose to do so, said Transport Minister Anthony Loke.

However, he noted that one of the conditions for licensing is that licence holders cannot have conflicts of interest.

“For instance, if they have a company that sells cars, they cannot send it to their own vehicle inspection centres.

“If any company in the automotive industry wants to apply for a licence, they would have to set up a new company too,” he said in a video posted on his TikTok account last night.

He was responding to a question by PAS member Nurul Islam Mohammed Yusoff on why companies three inexperienced companies had been appointed to conduct motor vehicle inspections.

Nurul Islam claimed that based on the government’s guidelines, companies like Scrut Malaysia, MyTukar and Carsome are more qualified than the three companies.

Scrut provides reports and inspection services about the history and condition of used cars, though this is unlike roadworthiness inspection services monopolised by Puspakom.

MyTukar and Carsome are online platforms for buying and selling used cars.

New companies

Early this month, Loke announced that three companies have been appointed to provide inspection services, which are given two years to complete infrastructure requirements before being granted an operating licence.

The three companies are Wawasan Bintang Sdn Bhd (Port Klang, Selangor; Gua Musang, Kelantan; Mersing, Johor), Pakatan Petroleum Sdn Bhd (Rawang, Selangor; Temerloh, Pahang), and Beriman Gold Sdn Bhd (Kuching and Serian, Sarawak).

Wawasan Bintang is an eight-month-old company with no track record. Loke explained it is a special purpose company with a paid-up capital of RM20 million set up for the vehicle inspection request.

Pakatan Petroleum is a petroleum and petroleum products company, while Beriman Gold’s business profile states that it is a construction company.

Loke had previously justified the apparent inexperience of the companies by saying that Puspakom had monopolised vehicle inspection services for 30 years until the government decided to allow new entrants to the market last year.

Don’t twist issue

In the video last night, Loke also expressed hope that the issue won’t be politicised again once automotive companies start applying for the licence.

“I hope when these companies come to apply (for the licence), they (the opposition) don’t twist the issue too. Later they would say we granted it to companies that have conflict (of interest), to non-bumiputera companies, and so on.

“We want what’s good for this field, so there are more services, more competition, and to improve the quality of vehicle inspections in our country,” he said.

He also revealed that one of the conditions for licensing is that if applicants apply to set up shop in a densely populated area, they must also set up another shop in a more sparsely populated area and potentially operate the latter at a loss.

This helps to ensure that vehicle inspection services are available in more places, he said.

Only conditional approval given to vehicle inspection firms - Loke

Carsome and Scrut M'sia more qualified, PAS man pans Loke

No experienced firm before Puspakom due to monopoly, Loke explains

Govt appoints 3 new companies for vehicle inspections