Puspakom monopoly on vehicle inspection to end - UMW, Naza, or Sime Darby could step in

After 29 years of being appointed by the government to carry out mandatory vehicle inspection, the government will be ending Puspakom’s monopoly. Puspakom was appointed back in 1994 as Malaysia’s first and only vehicle inspection company.

According to Transport Minister Anthony Loke, "This means that Puspakom will no longer be the sole provider of vehicle inspection services for the Road Transport Department from Sept 1, 2024."

While Puspakom’s concession will be renewed, the company will no longer have the exclusive rights as the country’s only vehicle inspection company.

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The report from New Straits Times mentioned that the Transport Minister has set several conditions for the parties which will provide the vehicle inspection services, mirroring a similar set of conditions that are imposed on Puspakom.

Now, talks of ending Puspakom’s monopoly isn’t new. Back in 2015, the government was looking to end Puspakom’s monopoly. The then-government was looking at several government-linked companies and bumiputera-owned firms to be given individual concessions to carry out the work.

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The names that were mentioned in the 2015 report were Naza, Sime Darby, and UMW Holdings Bhd.

Could either of these companies step in and offer vehicle inspection services like Puspakom?