Puspakom

  • Anthony Loke answers pressing questions on recent appointment of three new alternatives to Puspakom

    Anthony Loke answers pressing questions on recent appointment of three new alternatives to Puspakom

    There has been a lot of conjecture surrounding the transport ministry and road transport department’s (JPJ) appointment of three new non-Puspakom vehicle inspection service (PPKM) providers earlier this month. To put those matters to bed, transport minister Anthony Loke has come out in a new video to answer some questions regarding the move, some of which came from the opposition.

    Responding to concerns that the companies were not experienced in the field of vehicle inspections, Loke reiterated that it is unreasonable to expect these firms to have such experience, given that before this only Puspakom was allowed to perform vehicle inspections. “Last year, Puspakom’s concession that has lasted 30 years ended. [Now] we have choices. If we continued the concession for Puspakom, that means the public would have no [other] choice. But the government has opened up the market,” he said.

    Loke also denied accusations that the government has awarded millions of ringgit in contracts, saying that the companies have not received a single sen, as well as lambasting the opposition for confusing a licence for a procurement contract.

    “[It’s] like getting a driving licence – whoever passes the test will get the licence,” he said. “It’s the same thing for these companies – we gave them conditions [to meet] and we gave them conditional approvals for 24 months. That means within those 24 months, the companies must complete their facilities. Only then will the licences be issued to them.”

    The opposition’s accusations of cronyism was also batted away, with Loke saying that the current government’s approach is fundamentally different from what the previous Perikatan Nasional government would’ve done. “If I appointed crony companies, surely I will not be so stupid as to openly announce these companies?

    “The previous Perikatan Nasional government would have appointed the companies and not disclose them unless asked in parliament. But now, we made the announcement transparently without even being asked. [The companies] applied and were evaluated by the technical committee under JPJ,” he said.

    The opposition also asked why one company, Wawasan Bintang, received three locations for its branches, to which Loke said: “They have to look at where those three locations are. One area has a high population, which is Port Klang, but the other two areas are Mersing and Gua Musang.

    “One of the imposed conditions is that if [one company] picks an area that gets a lot of business, it also has to open branches in areas that are less populated, which may cause them to lose money. This way, we will ensure services are offered to rural communities.”

    Anthony Loke answers pressing questions on recent appointment of three new alternatives to Puspakom

    In response to accusations on social media that the ministry is only looking to break Puspakom’s monopoly because it is a Bumiputera company, Loke said that the three new companies are also Bumiputera, so race is not an issue. “We do not look at race. The government’s policy is to encourage competition. Why are we stuck in our old ways? Why not give the opportunity to other Bumiputera [companies]?

    “This is what we regret, that whatever issue is being discussed, [the accusers] must relate it to race. The way we see it, it is for the good of the country and the good of the people,” he said.

    Lastly, Loke answered the opposition’s claim that established companies in the automotive sector, such as Scrut and Carro, are more deserving. He said these firms are more than welcome to apply, provided they do not have any conflicts of interest. “For example, if these people have companies that sell cars, they cannot then send their cars to their own vehicle inspection centres. Companies are involved in the automotive sector, if they want to apply for a [PPKM] licence, they must also create a new company.

    “I hope that if these companies apply, [the opposition] does not then twist the story saying that we gave [licences] companies that have conflicts, that are non-Bumiputera and so on. We want this sector to benefit; we want more services [to be offered], more competition, and we want to raise the quality of vehicle inspection services in our country,” he said.

     
     
  • Puspakom insists it’s compliant with JPJ inspection regs after accused of failing lorries unreasonably

    Puspakom insists it’s compliant with JPJ inspection regs after accused of failing lorries unreasonably

    Puspakom has stressed that its vehicle inspections strictly follow the methods and protocols set by the road transport department (JPJ). This comes amid accusations that it has been failing vehicles unfairly, Bernama reports.

    Chief executive officer Mahmood Razak Bahman said the company has no authority to change the JPJ’s protocols, and doing so would open it up to potential fines from the department.

    “Although there are views that faded load stickers are not related to road safety, Puspakom must still comply with the instructions from the authorities,” he said in a statement yesterday.

    This was in response to comments made by Sibu Lorry Association secretary Augustine Paat, calling for greater transparency after its members complained of unreasonable failures, including for faded load stickers.

    Puspakom insists it’s compliant with JPJ inspection regs after accused of failing lorries unreasonably

    Mahmood dismissed those allegations, saying that all vehicle owners should be aware of the regulations they must meet. “Bringing non-compliant vehicles for inspection shows a lack of responsibility towards the regulations. This is an attitude problem we need to address,” he said.

    He added that all parties must cooperate to ensure safety by going through inspections that are transparent, professional and in line with JPJ’s regulations.

    Puspakom has been in the news in the past month after the transport ministry and JPJ ended its monopoly by appointing three new vehicle inspection service (PPKM) suppliers.

     
     
  • MoT clarifies new vehicle inspection appointments – chosen based on financial stability, not age/experience

    MoT clarifies new vehicle inspection appointments – chosen based on financial stability, not age/experience

    The ministry of transport’s (MoT) appointment of three new non-Puspakom vehicle inspection companies on Friday led to lots of speculation on why those specific firms – which apparently had either only been recently incorporated or had no experience in vehicle inspections – were awarded contracts. The said ministry has now come out to explain its selection process, insisting that it was based on financial stability.

    As previously reported, 12 companies sent proposals for becoming motor vehicle inspection service (PPKM) suppliers before the October 31 deadline. All applications were evaluated according to procedures outlined in the Treasury Circular 2.8 – Procurement Procedures through Requests for Proposals (RFP) that has been in effect since November 29, 2022, MoT said.

    It added that the selection of companies were based on the guidelines set under the Road Transport Act 1987 (Act 333), including eligibility requirements, procedures, regulations and standards that can be found on the MoT and road transport department’s (JPJ) websites since April 23.

    Among the main requirements for the companies entering the RFP process included being registered and licensed with the companies commission of Malaysia (SSM) and local authorities, having a minimum paid-up capital of RM10 million throughout the length of service, and having a minimum working capital of RM5 million per year.

    MoT clarifies new vehicle inspection appointments – chosen based on financial stability, not age/experience

    They must also obtain a standards compliance certificate from the standards department within two years of the offer date, provide a minimum five per cent deposit or bond from their working capital, obtain an approved facility certificate from the environmental department before licensing, and be registered as a member of the International Motor Vehicle Inspection Committee (CITA) within two years of the date of licensing.

    Their shareholders, owners and board of directors also cannot have any pending court proceedings or actions or be blacklisted by any authorities. The evaluation and licensing committee found that the three selected companies – Wawasan Bintang, Pakatan Petroleum and Beriman Gold – fully met the stated criteria.

    The ministry said that neither it nor JPJ set the period of the companies being registered with SSM as a requirement, instead giving priority to their financial stability based on their ability to provide sufficient paid-up capital and working capital.

    It added that since 1994, Puspakom had hitherto been the only company mandated to conduct vehicle inspections under the Road Transport Act 1987. As such, no other companies could have had the experience in carrying out Puspakom’s functions before.

    MoT clarifies new vehicle inspection appointments – chosen based on financial stability, not age/experience

    As for the locations of the service providers, MoT said it determined those based on a “cross subsidy” concept, whereby companies were delegated both low- and high-capacity areas. This prevents any company from only choosing locations with high volume and ensures all users nationwide get access to vehicle inspection services. It also stressed that the locations were distributed to the companies by MoT and JPJ; they were not selected by the companies themselves.

    The ministry reiterated that the offer letters awarded to the selected companies on Friday were conditional approvals. This requires each firm to ready the necessary infrastructure, equipment, manpower and other requirements within 24 months (two years) before the MoT and JPJ will even issue operating licenses.

    As such, the government will not be financially burdened by this approach, it said; it will not grant the operating licence if the companies fail to meet the conditions within the specified period. The procurement process, MoT added, was carried out based on the procurement and financial procedures in force to ensure quality, transparent, and competitive vehicle inspection services for the benefit of the rakyat.

     
     
  • As Puspakom monopoly ends, over 10 companies have applied for vehicle inspection licence – Loke

    As Puspakom monopoly ends, over 10 companies have applied for vehicle inspection licence – Loke

    Puspakom’s three-decade vehicle inspection monopoly is over, and more than 10 companies have applied to become its first-ever competitors, a report by The Star says.

    The English-language daily quoted transport minister Anthony Loke as saying that the numbers have not yet been finalised, but that he hopes the new operators can open for business by end-2025.

    “There are about more than 10 companies who have applied for the (vehicle inspection) licence, but the actual number of companies that are given the licence will be announced later,” he said, adding that the new operators would also need time to build new facilities.

    It was announced in late-March 2023 that beginning September 1, 2024, Puspakom will no longer be the only agency providing vehicle inspection services, effectively bringing to an end the monopoly it has enjoyed since 1994. Along with recent allegations of approving unroadworthy vehicles brought to light by the tragic Ayer Keroh accident, these days don’t look too sunny for the company.

     
     
  • e-Invoicing: Puspakom says tax identification number must be provided for all transactions from July 25

    e-Invoicing: Puspakom says tax identification number must be provided for all transactions from July 25

    Puspakom has announced that from July 25, 2024, all customers wanting to carry out any vehicle inspection or checks at its branches or make payment transactions online via MyPuspakom will need to furnish their tax identification number (TIN) as part of the process.

    The vehicle inspection agency said that this is in line with the enforcement of the electronic invoicing (e-Invoice) system by the inland revenue board (LHDN), which is aimed at promoting transparency in financial and taxation matter and improving the country’s taxation system. The first stage of the system’s implementation is set to begin on August 1.

    The TIN is a unique number issued by LHDN to individuals and businesses in Malaysia, and is basically the number assigned to your tax file to identify you. For individuals, this is your IG number, previously given a SG or OG identification prefix.

    According to Puspakom, the information required for individual customers is their MyKad (IC) number and TIN, while corporate clients will have to provide their company registration number, SST number and TIN.

    The agency says that customers must ensure they have a TIN before making an appointment on its website. It added that this is necessary to ensure that every payment transaction can be processed correctly and efficiently both by it and LHDN. The e-invoicing system will of course also apply to new car purchases.

     
     
 
 
 

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