According to a report by NST, the finance ministry, pending the approval of the Cabinet, will decide on a company to supply official vehicles used by ministers and high-ranking government officials, department cars, as well as vehicles used by the police force.

“The task of appointing a company is still the responsibility of the finance ministry, which will either see existing vehicles continuing to be used or they will be replaced with new vehicles,” said domestic trade and consumer affairs minister Datuk Seri Saifuddin Nasution Ismail. He added, “we have previously discussed which measure would save the government more money, whether a vehicle allowance or providing an official vehicle. This will be decided by the finance ministry.

The need to appoint a new company comes after the end of a 25-year government concession with Spanco in December 2018 – the company was then given an extension to continue managing the fleet until the end of 2019.

In February 2019, the government made a request for proposal for a 15-year contract, which includes 32 Toyota Vellfire MPVs and 3,000 Honda Accord sedans. Currently, ministers and senior government officials were using Proton Perdana and Toyota Camry sedans, respectively.

Meanwhile, 1,300 police patrol vehicles and 8,000 units of the Proton Saga and Persona models are also reportedly part of the deal. While the size of the concession has yet to be revealed, it is estimated that based on the current fleet of 12,500 vehicles, the contract could be worth RM300 million a year from the fifth year onwards.

The Naza Group, Berjaya Group, Sime Darby, DRB-Hicom, Samling Group, Comos and Go Auto are among those are interested in the tender, with Spanco aiming to retain its concession.