Government looking to break up monopolies in M’sia – Puspakom and MyEG Services under assessment

Government looking to break up monopolies in M’sia – Puspakom and MyEG Services under assessment

In an effort to spur competition and reduce the cost of living, the government is looking to break up any form of monopoly or cartels in Malaysia.

According to a report by The Star, domestic trade and consumer affairs minister Datuk Seri Saifuddin Nasution Ismail said the government has identified a few companies that are believed to have a monopolistic position in the market.

Among the companies named that related to motoring include Puspakom and MyEG Services Berhad. Malaysians will be familiar with these two companies, as the former is the country’s first and only comprehensive national vehicle inspection company to undertake all mandatory inspections for both commercial and private vehicles.

Meanwhile, MyEG is an e-government services provider that allows users to perform a variety of activities like road tax renewal as well as summons or compound payment with the Road Transport Department (JPJ), Kuala Lumpur City Hall (DBKL) and the Royal Malaysia Police.

Government looking to break up monopolies in M’sia – Puspakom and MyEG Services under assessment

Saifuddin explained that there were three elements in assessing monopoly issues, including the relevance of the policies that resulted in the creation of these monopolies, the size of their investments and the impact to the economy. “We haven’t submitted our recommendations to the Cabinet on the four companies,” he noted.

“This is part of the government’s initiative to liberalise the industry and promote competition and technological innovation in business and services,” said Saifuddin. He added that the increase in the cost of living was believed to be partly contributed by resources being controlled by a small group of individuals and big conglomerates.

For now, the government will continue to assess the matter via a special task force set up last year, which is headed by economic affairs minister Datuk Seri Mohamed Azmin Ali, with others involved being transport minister Anthony Loke, health minister Dr Dzulkefly Ahmad and agriculture and agro-based minister Datuk Salahuddin Ayub.

“Recommendations on whether we would dismantle the monopolistic businesses or allow them to continue could be among the options. We are still at the discussion stage. Monopolies are not necessarily bad, but the ones that are bad are those inhibiting their competitors, manipulating prices and controlling supply,” said Saifuddin.

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Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • Azman Kurt on Apr 04, 2019 at 4:15 pm

    This is what i like about our new Gov. Hidup Tun!

    Like or Dislike: Thumb up 33 Thumb down 12
    • YB Kunta Kinte on Apr 04, 2019 at 6:29 pm

      Only country in the world where a brand new car requires a “MOT” ie certification to show road worthy.

      This adds RM500 to the car price.

      All over the world, it is understood that new cars are already road worthy as it comes straight from the factory brand new

      This is past 60 years of corruption

      Like or Dislike: Thumb up 20 Thumb down 6
      • nosushi on Apr 05, 2019 at 8:31 am

        In Japan one can not buy a car without providing proof to the dealer that one has a place to park it. So?

        Like or Dislike: Thumb up 11 Thumb down 2
      • John doe on Apr 05, 2019 at 10:42 am

        That’s due to AP sell as new car …Without AP, most greed and evil die off naturally

        Like or Dislike: Thumb up 3 Thumb down 0
    • YB Albert on Apr 04, 2019 at 6:45 pm

      After breaking up monopolies, who will get the contracts?
      Those who are intensely lobbying now.
      They can call it ‘open and fair selections’ but just open your eyes,few months later….the well connected.
      just look at the ‘protiga’ intense lobbying now.We dont need this project membazir wang ,but someone is keen to bulldoze thro,from Pakatan. Bolehland escaped from one money pit…but another money pit has emerged.

      Like or Dislike: Thumb up 21 Thumb down 1
      • YB Kunta Kinte on Apr 04, 2019 at 11:54 pm

        Governments may change but it is still the 1.6 million Government servants who make policy and are always looking for contracts, freebies and easy way of life

        Same people as 5 years ago

        Like or Dislike: Thumb up 4 Thumb down 9
        • redpilled on Apr 05, 2019 at 3:40 pm

          the one who make policies are NOT the servants, but the ministers.
          bad policies come from bad ministers. servants do just that- SERVE, the dont formulate.

          Like or Dislike: Thumb up 9 Thumb down 0
      • Amran on Apr 05, 2019 at 9:53 am

        protiga gonna be suzuki or geely. So no problem

        Like or Dislike: Thumb up 1 Thumb down 0
      • Greasemonkey on Apr 05, 2019 at 5:29 pm

        Well said & very true, umno 2.0.Dulu pencuri,now pencuri & penipu.FED UP ardy.

        Like or Dislike: Thumb up 0 Thumb down 0
  • Kudos DS Saifuddin! Finally, putting an end to crony monopoly and cartel. Hidup Malaysia Baru

    Like or Dislike: Thumb up 21 Thumb down 7
  • Antoher monopoly on Apr 04, 2019 at 4:27 pm

    TouchnGo is another one that needs to be broken up.
    Gov should set a standard for such payment system, but it should be open to any company who wants to implement it.

    Like or Dislike: Thumb up 19 Thumb down 0
    • It should be parked under the purview of Bank Negara to regulate such cashless payment. Using cashless is good, reduce coins in your wallet. But alot of operators have extra surcharge for using TnG especially for parking. We dont want that.

      Like or Dislike: Thumb up 0 Thumb down 0
  • vVivi Zurianti on Apr 04, 2019 at 4:59 pm

    I am afraid later will U-turn.
    Too many cronies and gang cari-makan. Too entrenched in the system.

    Like or Dislike: Thumb up 39 Thumb down 1
  • #wapalewheels on Apr 04, 2019 at 5:21 pm

    The last paragraph

    “Recommendations on whether we would dismantle the monopolistic businesses or allow them to continue could be among the options. We are still at the discussion stage. Monopolies are not necessarily bad, but the ones that are bad are those inhibiting their competitors, manipulating prices and controlling supply,” said Saifuddin.

    My intention is the price, when have many competitors we rakyat should get the lower price. If the price not manageable, it is pointless.

    myfb: Wapale Wheels

    Like or Dislike: Thumb up 4 Thumb down 2
  • M.Zin on Apr 04, 2019 at 5:22 pm

    Didn’t mention open tender, I will assume this is just to enlargen the crony base from 1 to 3 parties or more. Still going back to the old ways (the Mahathir way) of doing things. Sigh. These guys are worse than the previous ones.

    Like or Dislike: Thumb up 48 Thumb down 5
  • Avg joe on Apr 04, 2019 at 6:39 pm

    Is it “breaking up monopoly” or replace bn crony business ppl with PH crony business ppl ?

    Well-loved. Like or Dislike: Thumb up 53 Thumb down 1
  • Roque on Apr 04, 2019 at 6:54 pm

    Puspakom is crap. Wtf for…

    Like or Dislike: Thumb up 9 Thumb down 4
    • A proper service and maintenance record at the car or truck manufacturer should be sufficuent. Onky Trucks or cars without agents or representatives in tge country should go for puspakom inspection.

      Like or Dislike: Thumb up 0 Thumb down 1
  • If at all there is another entity to compliment or replace PUSPAKOM, they must be more EFFICIENT, TRANSPARENT and CORRUPT FREE.

    Like or Dislike: Thumb up 2 Thumb down 0
  • Andrekua on Apr 05, 2019 at 9:57 am

    Not all monopolies are bad, but they definitely need to be monitored.

    I personally think myeg is one of a good example. Their online services is great, reducing the hassle to queue etc. It will be delivered to your doorstep.

    Why would you need to monitor them? Again, look at myeg. Although their online renewals are great, their rehiring is a huge mess. They charged you for basically doing nothing. They act as if they are doing their work, getting your information, passports etc, and tell you to pay up to proceed. However once you reached immigration, they will tell you another story why your illegal workers is not qualified.

    In this case, myeg was supposed to screen and only accept qualified illegals to reduce the queue at immigration. They should charge a smaller amount to do qualification checks, instead of a huge sum of RM800 per head upon registration.

    Like or Dislike: Thumb up 6 Thumb down 3
  • John Doe on Apr 05, 2019 at 11:17 am

    PUSPAKOM has done a tremendous job in ensuring the vehicles on the road is road worthy.
    Instead of reviewing PUSPAKOM or MYEG, you should review the regulations.
    To review the 2 former is only to open up opportunities for someone to go in and take charge. We all know very well what happens when the old dog goes in. Everything goes bankrupt.

    Like or Dislike: Thumb up 12 Thumb down 3
  • Mr. Octopus on Apr 05, 2019 at 4:47 pm

    The first one should be TNB. Raking in billions in profits from sky high tariffs and we have no choice but to pay!

    Such shameless act of profiteering from providing the rakyat with basic necessity…

    Like or Dislike: Thumb up 1 Thumb down 3
  • robinhood on Apr 05, 2019 at 6:08 pm

    Yes, good move. Monopolies are bad and source of corruption. This will prove PH is walking the talk. But please ensure selection of companies to operate are transparent and fair!!!

    Like or Dislike: Thumb up 0 Thumb down 0
  • azhar on Apr 06, 2019 at 9:21 am

    Another mess from previous govt that has to be clean up by current govt..and many thinks this can be done in a short time…gilaaaa

    Like or Dislike: Thumb up 0 Thumb down 0
    • transformer on Apr 08, 2019 at 6:11 am

      Spot on azhar bro. many forgots how previous govt clean up the coffers, bought luxury ship and birkins…gilaaaa

      Like or Dislike: Thumb up 1 Thumb down 1
  • Malaysianz on Apr 06, 2019 at 3:21 pm

    Government may consider to take up both company under government control or ministry of transport as these service are mostly compulsory to the people. And may consider reduce operation cost and increae efficiency

    Like or Dislike: Thumb up 0 Thumb down 0
  • Concern rakyat on Apr 06, 2019 at 3:26 pm

    Government may consider to take over Puspakom and park under JPJ team so it will report under MOT, For Myeg, JPJ can take over the roadtax online renewal system. This should be done by MOT at the 1st place when MYEG have this right to do so. JPJ should take back this initiative to do online renewal. For summon payment I think MyEG is not the only monopoly system.

    Overall Is JPJ should take up the job instead of spliting to third party to do the job

    Like or Dislike: Thumb up 0 Thumb down 0
  • ismail on Apr 06, 2019 at 5:08 pm

    hopefully its happen soon. in singapore got 3 inspection company which compete to give good service with govt autorities supervising

    Like or Dislike: Thumb up 0 Thumb down 1
  • Khunta Khinte on Apr 07, 2019 at 9:27 am

    You cannot define a business as a monopolistic in nature if the rules & regulations are controlled and the fees are gazzeted by the Government. There is a reason this is called “Concession”. Monopoly gives a company a liberty to determine the requirements and fix prices. Public must be educated to understand the term “Concession” and its mechanism. If the Government decides to open and liberalise, they must be fair to all parties, all must subscribe to the requirements e.g. Concession KPIs, Concession fees payable to the Government etc. Things to ponder, if the Government opens commercial vehicle inspection business, can new companies survive (substantial investment to set up infra, requirement to ensure service accessibility nationwide, concession fees payable to the Government, low inspection fees etc.). It is not viable. But if the Government decides to impose mandatory periodical private vehicle inspection (provided the volume based on vehicle age), than it makes sense to sharing wealth of the economy.

    Like or Dislike: Thumb up 7 Thumb down 0
 

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