Companies appointed for motor vehicle inspection services are not allowed to open inspection centres only in profitable areas, said Transport Minister Anthony Loke in a media conference after officiating the groundbreaking ceremony for the Exio logistics hub on Wednesday (Feb 12).
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NewsTranscript
00:00So YB, in these two years, when they can provide everything that is needed, then they will be given?
00:07Yes, that's right. We have said it very clearly that day.
00:11I know that there are politicians who have tried to politicize all issues.
00:16Even though this is a true foundation.
00:19Why don't they support us to break the monopoly?
00:22Before this, only one company was given the right to provide monopoly for this vehicle inspection.
00:31And many complaints were made by many people.
00:35So now we are opening this market to more players in the industry, more companies.
00:41And what we want to see from them is their ability to provide that facility.
00:45That's why we need them to have capital to pay.
00:4810 million ringgit.
00:50For them to provide the facility.
00:52I want to emphasize that the license has not been issued yet.
00:54Only the conditional approval.
00:56So if there are people who want to politicize, they don't look at the facts.
01:02Even though there is no contract. They say, oh this is a crony, let's give a contract.
01:05We are the first, they are the tree.
01:07If it meets the conditions, the conditional approval will be given.
01:11I want to say that it is not only up to three companies.
01:15There are many more locations, many more countries that have not yet taken up or have no alternatives to Puspakom.
01:24And we have to be careful.
01:26They can't just take advantage of the place.
01:29Because Puspakom also operates in a cross-subsidy way.
01:33There are not 54 vehicle inspection centers all over the country by Puspakom before this.
01:38Not all 54 are profitable.
01:41There are many who are at a loss, right?
01:43Because the cost of the operation is more than the vehicle that can be inspected.
01:46Because there are places where the population density is low,
01:49so maybe they don't have many vehicles to be inspected.
01:53So there are centers that can cover their operations, there are those who are at a loss.
01:58So they use the benefits to cover those who are at a loss.
02:01Those three locations are not all three locations where there are many residents,
02:04there are many vehicles.
02:06There are locations that may be crowded, like Rawang.
02:10There are a lot of vehicles because Rawang is an industrial area.
02:13There are a lot of commercial vehicles.
02:15But there are also places like Guam Busan.
02:17There are not many.
02:18So they have to be careful.
02:20Where there are a lot of residents, there are a lot of commercial vehicles,
02:23with one area that may be lacking.
02:25They want to buy land, they want to buy machines,
02:27they want to build their workshops and so on.
02:30Everything is based on their investment.
02:32And there is no financial implication to the government.
02:39For more information, visit www.fema.gov