Companies Approved For Vehicle Inspections Have Sufficient Paid-Up Capital – Loke

KUALA LUMPUR, Feb 18 (Bernama) -- Three companies, including an eight-month-old firm granted conditional approval to conduct Motor Vehicle Inspection Services (PPKM), are not "RM2 companies" but instead have sufficient paid-up capital, said Transport Minister Anthony Loke.

He explained that the company in question is a special-purpose vehicle established specifically to apply for the PPKM license.

“The company, which is said to be only eight months old, has a paid-up capital of RM20 million and is involved in other business activities. It is not an RM2 company—they have sufficient capital. For the record, this company is fully Bumiputera-owned, and all three of its directors are Bumiputera,” he said during the minister’s question time in Dewan Rakyat today.

Loke was responding to a question from Khairil Nizam Khirudin (PN-Jerantut) on why industry experience was not a key criterion in selecting companies to compete with the Computerised Vehicle Inspection Centre (Puspakom).

He further clarified that the Ministry of Transport has set specific criteria to ensure that new entrants invest in building expertise and capabilities in the vehicle inspection industry.

Financial capability is the key factor in ensuring that companies meet the required standards such as providing inspection equipment, having a qualified workforce and operational feasibility, said Loke.

“To prevent conflicts of interest, applicants are allowed to establish new companies or use entities unrelated to the automotive business when applying for a PPKM licence.

“This ensures a clear separation of business interests and prevents situations where a company involved in vehicle sales or services approves its vehicles,” he explained.

Loke emphasised that the three appointed companies underwent a strict, transparent selection process and fully met all criteria, including employing certified vehicle inspectors.

“If I wanted to hide anything, I wouldn’t have announced the names of these companies. What matters is opening up the market to make vehicle inspections more competitive, efficient and provide consumers with more choices,” he said.

-- BERNAMA