Companies interested in providing vehicle inspection services can apply by Oct 31, says Transport Minister Anthony Loke.
During a press conference on Monday (Aug 26), Loke mentioned that the ministry has received a positive response so far and will soon announce the successful applicants.
Loke noted that under the new system, Puspakom will be the first company approved for vehicle inspections.
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During a press conference on Monday (Aug 26), Loke mentioned that the ministry has received a positive response so far and will soon announce the successful applicants.
Loke noted that under the new system, Puspakom will be the first company approved for vehicle inspections.
WATCH MORE: https://thestartv.com/c/news
SUBSCRIBE: https://cutt.ly/TheStar
LIKE: https://fb.com/TheStarOnline
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NewsTranscript
00:00How is everyone aware, since 1994, the Puspakom Sdn. Bhd. has been given the power to carry out the function of road traffic officers,
00:16involving the scope of checking motor vehicles under the Road Traffic Act 1987.
00:24This power has been translated through a license document, which outlines the conditions and scope of the provision of services.
00:34Among the scope of the inspection involved include the initial inspection, the maintenance inspection involving the trading vehicle, and the inspection of the owner's change, which is required under Article 3.
00:49Along with the provision of the power, a concession agreement has been signed between the government and Puspakom,
00:58which, among other things, gives exclusive rights to Puspakom to be a sole entity to carry out the functions of traffic officers throughout the country.
01:08The term of the power and concession agreement will end on the 27th of August, which is tomorrow, and the 31st of August, 2024.
01:19This means that the concession between the government and Puspakom will end on the 31st of August, which is on Saturday.
01:31As previously announced, the government on the 17th of March, 2023, has agreed to no longer retain exclusive rights to Puspakom,
01:42and will allow other trading and competent parties to request to carry out the function of checking motor vehicles,
01:50in accordance with the conditions set by the Ministry of Transport and the CPJ.
01:57Therefore, the concession agreement with Puspakom will not be continued.
02:04However, to implement this principle, Puspakom will be the first company to be given power under the new mechanism,
02:12which allows any competent company to carry out the function of a traffic officer,
02:18in the scope of checking motor vehicles, which is required under Article 3.
02:23With this power grant, under Section 126.1, Article 3.3.3, Puspakom and any competent companies that will be approved,
02:35can provide the service of checking motor vehicles, which is stipulated under the article,
02:40in the inspection centers and through traffic inspection services throughout the country to customers and the public.
02:49So far, the contribution from the industry to provide the service of checking motor vehicles, which is stipulated under Article 3.3.3, is very positive.
02:58The Ministry of Transport will assess all requests and announce new successful players in the near future.
03:06The CPJ will continue to monitor and monitor the provision of service and operation of checking motor vehicles,
03:14so that it is in accordance with the standards and regulations that have been established,
03:18and so that quality service is provided to customers.
03:23At the same time, the government also invites and urges any competent parties to apply for a power grant
03:33to implement and provide the same service in our country.
03:38The guidelines for applying for a power grant or license for the purpose can still be obtained from the MOT or JPJ website.
03:47The deadline for applying is October 31, 2024.
03:54So this is what we have announced before, and today we will implement it.
04:00First, give a license to Puspakom to continue their operation.
04:07Puspakom will continue to operate, but they need to compete with other players in the industry.
04:14Puspakom will continue to operate, but they need to compete with other players in the industry.
04:27Puspakom will continue to operate, but they need to compete with other players in the industry.
04:37However, what they have done so far can be continued as usual.
04:43The only difference is that there may be new players who need to compete in terms of service.
04:50I am confident that they will be able to do so because they have a lot of experience.
04:54They have a large network of 54 branches all over the country.
05:02We are open to other players to enter the industry.
05:08But before this, we cannot grant a license yet because there is still a concession.
05:14When the concession ends on August 31, we can grant a license to other players in the industry.
05:21The first phase will be on October 31.
05:28All companies who are interested must submit an application before October 31 and we will evaluate it.
05:37My hope is that by January next year, the second and third licenses can be issued to other companies.
05:46So that in a short period of time, there will be more competition in the market.
05:53This is what we hope for.
05:56I would like to thank Puspakom for their commitment.
06:03Even though the market is open to competition, they have given their commitment to continue their branches.
06:11Before this, they operated in a cross-subsidy manner.
06:18Some branches are profitable and some are at a loss.
06:21There are some branches that cannot be profitable because they are in deep areas,
06:25such as social services.
06:27But they operate in a cross-subsidy manner.
06:31Even though they do not have exclusive rights now,
06:34their commitment is to continue with all the branches
06:37so that they are not only focused on the profitable branches.
06:43At the same time, the branches outside the city will also be maintained and continued.
06:50Any other questions?
06:58There are a lot of people who are interested.
07:00When we made the statement, almost 50 companies came.
07:04There are two companies that have officially announced their application.
07:14But it is not the end yet.
07:17There is still time until October to make an application.
07:22We understand that some companies have announced that they will submit their application before October.
07:31After the application is closed, we will make an assessment.
07:36We will make an assessment of the companies that have submitted their application.
07:39Those who submit their application earlier will get their license earlier if they meet the requirements.
07:45They do not have to wait until October 30.
07:48If they submit their application now, we will make the assessment first.
07:53We will give the license to the companies that have passed the assessment.
07:58For example, Puspakom has been operating for a long time.
08:03We have given them the license today.
08:06But this license will be given to other companies if they complete the application and comply with our assessment.
08:13Are there any strict requirements for their own use?
08:16We have stated the requirements before.
08:19There are some requirements that can be seen through the guidelines in our agreement.
08:27For example, there is a minimum fee.
08:30There is an effort in terms of land.
08:35They have suitable land.
08:37There is a technical effort.
08:41There is an investment in machinery and equipment.
08:46So, there are some requirements that have been set.
08:49Just like we have set for Puspakom.
08:51This is fair and square.
08:53All the companies that are operating must comply with the same requirements.
08:59So, the license of issuers for the earlier application, will they receive it earlier or after October?
09:06No.
09:07If there are two companies that have submitted their application, we will make the assessment first.
09:12If they pass the assessment, we can issue the license at any time.
09:18There is no need to wait until October.
09:20But for this first phase, we will close it in October.
09:26Because we want to see how many companies are interested.
09:29If there is a need, we will reopen it later.
09:31But we don't want to have a time where there is no deadline.
09:38Because we want to know how many companies are interested.
09:41Then, we will make a decision on where to license and where the need is.
09:56For more information, visit www.fema.gov