Having more players is believed to be the first step towards the implementation of the vehicle end of life (VEOL) policy. It will also enable the setting up of more inspection centres.

The report noted that the service had long been the domain of DRB-Hicom Bhd’s subsidiary, Puspakom Sdn Bhd.

“The government is opening up the vehicle inspection industry to other players. This is to prepare for the eventual implementation of the VEOL policy. They need more outlets to conduct vehicle inspection before the policy can be implemented,” The Edge quoted an automotive analyst as saying.

“However, the issue is quite sensitive because if a car fails the inspection, the owner has only two options – repair it or scrap it. Both actions require money and any policy that burdens the people will surely be avoided now with a general election looming,” he added.

Once implemented, the policy would require private cars beyond a certain age to be inspected before they can be allowed on the road.

Deputy International Trade and Industry Minister Ahmad Maslan was reported to have said in 2015 that about 450 inspection centres were needed for the VEOL policy to run smoothly.

At present, there are 55 Puspakom centres in the country.

For its financial year ended March 31, 2016, Puspakom posted a profit after tax of RM11.8 million on the back of RM133.3 million in revenue.

The Edge said neither DRB-Hicom nor the transport ministry responded to its questions.

The report said among the names bandied about as the likely concessionaires for computerised vehicle inspection centres are Naza Group, Sime Darby Bhd and UMW Holdings Bhd.

However, a Naza Group representative denied having any knowledge about the deal when contacted by The Edge.

Last year, the automotive market in Malaysia hit its lowest level of sales since 2009, with only 580,124 units sold.

There are said to be more than 13.3 million private cars in Malaysia. Together with lorries, motorcycles, buses and taxis, there are more than 28 million motor vehicles.