Puspakom Has More Rivals Now. So Why Aren't Car Inspections Getting Cheaper?

More competition usually means one thing for consumers: better prices. So now that Puspakom is no longer the only operator allowed to handle private vehicle ownership-transfer inspections in Malaysia, you might reasonably expect inspection fees to start coming down too.

Except that's not how this particular market is going to work. Transport Minister Anthony Loke says fees for private vehicle ownership-transfer inspections, known as M.V.15 inspections, will remain standardised and regulated by the Road Transport Department (JPJ) across licensed centres.

In other words, the new operators can compete with Puspakom, but not by starting a price war.

First, Puspakom's Monopoly Has Already Ended

This part isn't new. Back in May, Loke announced that six companies had been granted licences to conduct M.V.15 inspections, formally ending Puspakom's monopoly over private vehicle ownership-transfer inspections.

The government also made clear that it wasn't stopping at six operators. Other companies that meet the required conditions can apply for licences as Malaysia expands inspection capacity and access.

Carz previously covered the rollout when Carro announced eight inspection centres for M.V.15 services, giving motorists an alternative to Puspakom for this particular inspection.

So Why Aren't Inspection Fees Getting Cheaper?

Because the government doesn't want price to be the battleground. According to Loke, M.V.15 inspection fees are set by JPJ at a fixed rate, with licensed inspection centres not allowed to charge more than the prescribed amount.

He said the policy is intended to protect consumers while preventing operators from competing through lower prices that could affect the sustainability of the industry.

How Much Does An M.V.15 Inspection Cost?

When the expanded inspection network was announced in May, the M.V.15 inspection fee was reported at RM30, or RM37.80 inclusive of SST.

The important point from Loke's latest statement isn't a new price, but that the fee structure will remain standardised across licensed operators.

Then What's The Benefit Of Having More Operators?

This is where the government's argument becomes more relevant to motorists. Instead of operators trying to win customers by shaving a few ringgit off the inspection fee, Loke wants them competing over how quickly and conveniently they can get the job done.

He said inspections at licensed private centres can take less than 20 minutes when conducted according to schedule. The results are then transmitted directly to JPJ's system, helping facilitate the ownership-transfer process.

That matters because thousands of vehicles change hands daily, and one of the government's arguments for opening the market was that relying on a single provider limited capacity and consumer choice.

More Operators Doesn't Mean Less Oversight

Opening the market also means making sure standards don't slip as more companies enter. Loke said licences come with a responsibility to ensure inspections are legitimate and vehicles meet the required standards.

The Transport Ministry and JPJ will continue carrying out surprise audits and regular monitoring of private inspection operators.