It said priority is given to financial stability, with companies needing a minimum paid-up capital of RM10 million and a working capital of at least RM5 million a year.
In a statement today, SSM also said the recent selection of three companies took into account that they were fully Malaysian-owned, and that they complied with industry standards, including certification from the department of standards within two years of the contract award, and registration with the international motor vehicle committee within two years.
“After evaluation by the motor vehicle inspection services licensing and evaluation committee, the three selected companies were found to fully meet the established criteria,” it said.
The ministry’s statement followed concerns raised on social media regarding the selection criteria for the three companies appointed last week.
The three companies – Wawasan Bintang, Pakatan Petroleum, and Beriman Gold – will carry out vehicle inspections in addition to Puspakom, which will continue to operate as usual.
Citing the ministry’s records, a former PAS Youth leader said one of the companies was only eight months old and had no public track record.
According to the ministry, 12 companies submitted proposals during the request for proposal process.
“All the applications were evaluated based on guidelines outlined under the Road Transport Act 1987 and procurement procedures stipulated in Treasury Circular 2.8, effective since Nov 29, 2022,” it said.
On concerns about location selection, it said the sites were chosen based on a “cross-subsidy” model to balance services between high- and low-demand areas.
“This approach prevents companies from selecting only high-volume locations and ensures that vehicle inspection services remain accessible nationwide,” it said, adding that the locations were determined by the ministry and the road transport department.
The ministry also clarified that the Feb 7 offer letters were conditional, requiring the companies to set up infrastructure, equipment, and staff within 24 months before receiving their licences.
“The transport ministry reaffirms that this procurement process is conducted in accordance with existing procurement and financial procedures to ensure a high-quality, transparent, and competitive vehicle inspection service for the benefit of the public,” it said.