Questions surround Loke's choice of 3 companies to rival with Puspakom

Questions have been raised over the government's selection of three companies to compete with the Computerized Vehicle Inspection Centre or Puspakom, a move that came amid Transport Minister Anthony Loke's increasingly heavy criticism of the firm owned by tycoon Syed Mokhtar Al Bukhary.

The first phase of ending the Puspakom monopoly, which is among the targets set by Loke shortly after his return to helm the transport ministry in 2022, involves Wawasan Bintang Sdn Bhd, which will operate in Port Klang, Selangor, Gua Musang, Kelantan and Mersing, Johor.

Two other companies are Pakatan Petroleum Sdn Bhd, which will operate in Rawang, Selangor and Temerloh, Pahang, and Beriman Gold Sdn Bhd, which will operate in Kuching and Serian, Sarawak.

Checks with the Companies Commission of Malaysia (SSM) revealed that Wawasan Bintang Sdn Bhd was only incorporated in June last year and that no financial summary was published in the company's profile.

Marwiyah Marwi, Noriah Mohd Said and Idris Mohd Noh have been listed as the company owners.

Marwiyah and Noriah each hold seven million shares, while Idris holds six million shares.

A former PAS Youth leader reminded Loke of his promise to only appoint companies with a sound financial position.

Nurul Islam Mohamed Yusoff said since the company is only eight months old, there is no way to determine its financial status.

"The company is only eight months old, how can it have submitted its financial statements and audit report?" asked Nurul Islam, who is also a former CEO of the Malaysian Rubber Council.

He said that although the company's business was listed in the SSM document as "motor vehicle inspection", it had no experience in the automotive sector.

He also wondered how a company established in June 2024 could participate in the invitation process for interested parties, which Loke had announced would be opened no later than the first quarter of 2024.

Saying he agreed with the move to do away with Puspakom's monopoly, Nurul Islam demanded an explanation from Loke.

MalaysiaNow is also trying to contact all three companies.

Loke had previously cited several criteria for the vehicle inspection contract, including a strong financial position with a paid-up capital of RM10 million, sole proprietorship status and local ownership.

'Petroleum trading, construction works'

Meanwhile, a search on SSM revealed that Pakatan Petroleum was established in 1984.

However, the company's business nature is stated as "trading of petroleum, gas and related products".

Pakatan Petroleum is owned by Bijak Restu Sdn Bhd, which holds 10 million shares.

The director of Bijak Restu, Mohamed Zainal Abidin Abdul Kadir, owns 455,000 shares in the company, while one Mohamed Zain Mohamed Zainal Abidin holds 45,000 shares.

Meanwhile, Beriman Gold, which will provide vehicle inspection services in Sarawak, was established in 2014.

The company's line of business is construction works, telecommunications and multimedia, as well as the supply of security systems and IT equipment.

Beriman Gold is owned by Razali Pudin and Olingga Anak Jambing, who hold 9,000,000 and 1,000,000 shares respectively.

However, an automotive commentator defended the appointment of the three companies.

Chips Yap said there was nothing wrong with the companies wanting to diversify their business despite having no experience in the vehicle inspection sector.

"I am sure that the Transport Ministry examined their financial background and business capabilities and want to give them a chance to have a go. When they do start operations, I am sure that they will be monitored to ensure that they are doing things properly," Yap, editor of automotive news portal MotaAuto, told MalaysiaNow.

When contacted, Puspakom said it welcomed the three new players, adding that there would now be a shared responsibility for road safety.

"On a positive note, with the presence of these new operators, we can share the responsibility of ensuring vehicle safety and exchange ideas to improve the quality of vehicle inspections in Malaysia together," said Puspakom CEO Mahmood Razak Bahman in a statement.

The government had previously announced that it would end Puspakom's three-decade monopoly in providing vehicle inspection services to introduce competition and improve the quality of vehicle inspections.

Puspakom had been operating as the sole vehicle inspector since 1994. Its concession was extended for another 15 years in 2009.

More than 10 companies have reportedly applied for the service provider licence, including Naza Group, Sime Darby and UMW Holdings, all of which are in the automotive industry.