The government says that is looking into the possibility of opening up vehicle inspection services to other providers beyond Puspakom, which is currently the sole car inspection services provider in the country, Bernama reports.

According to deputy transport minister Kamarudin Jaffar, a decision on the matter will be made by year end. He added that the government was also reviewing the Puspakom concession agreement, which is set to expire on August 31, 2024.

“If its plan is implemented, vehicle inspection service companies need to comply with the high standards and rules that have been imposed on Puspakom. They will also have to take into account factors like the small market and government-controlled rates on fees,” he said at the Dewan Rakyat.

Kamarudin was responding to a question from Labis MP Pang Hok Liong, who asked if the ministry was ready to grant more licences to other companies to compete with Puspakom.

Profitability will be one of the issues taken into consideration. Kamaruddin said the market for customers or vehicles that were required to undergo inspection was low, and was estimated to be only 8% of the total number of four-wheeled vehicles in the country.

“In addition to the small market, vehicle inspections carried out by Puspakom required high development and operation costs and for 2018, Puspakom spent RM2 billion in operating expenses and RM550 million on development,” he said.

Puspakom’s average operating expenses for the five years from 2013 to 2017 amounted to RM9.7 million a month, while the average revenue collection was RM9.9 million a month, translating to a profit of about RM200,000 per month.

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