PUSPAKOM, Malaysia’s leading vehicle inspection company, has been a central player in ensuring road safety for over 30 years, holding a government concession for vehicle inspections.
For much of that time, the company operated without competition. However, with the end of its concession period on Aug 31, PUSPAKOM now faces a new era of competition as the vehicle inspection sector in Malaysia becomes liberalised. With the shift from a concessionaire to a licensee model, PUSPAKOM is encountering competition for the first time.
PUSPAKOM’s CEO Mahmood Razak Bahman sees this as an opportunity for growth and innovation, particularly in the areas of technology and customer service.
Embracing competition
Mahmood explained that the government’s liberalisation of the sector means new competitors will soon enter the market, which he believes will benefit customers.
“For 30 years, no one has been able to compete with us, but within the next two years, when new companies start operating, PUSPAKOM will have to compete to secure the same business,” he told The Malaysian Reserve (TMR).
Despite this, Mahmood believes competition will not be a major issue, given the industry’s 3.1 million mandatory inspections per year.
“The market size remains the same, but there will be two players, so we need a strategy,” he explained.
PUSPAKOM’s strategy for dealing with this new competitive landscape is clear, which is to focus on technological advancements and enhance customer service. According to Mahmood, these two factors will be critical in ensuring PUSPAKOM’s continuity.
“Our strategy to stay competitive in an open market revolves around two key factors: Technology and customer service,” he said. Its Glenmarie branch now operates 16 hours a day, allowing the company to serve more vehicles.
AI deployment: revolutionising inspection process
One of the most significant moves PUSPAKOM is making to differentiate itself from competitors is the deployment of artificial intelligence (AI) in its inspection processes. The company is set to introduce AI technology in its undercarriage inspections by January 2025, making it the first company in Malaysia’s vehicle inspection industry to do so.
Besides, he explained that currently, an undercarriage inspection takes between 10 to 11 minutes to complete.
“However, with the integration of AI, this process will be dramatically shortened to just one minute, a 90% improvement in time efficiency. This substantial reduction in inspection time is expected to significantly enhance PUSPAKOM’s overall operational efficiency and customer experience,” he added.
This move is expected to revolutionise the vehicle inspection process in Malaysia. PUSPAKOM has already consulted with stakeholders, including the Malaysian Association of Tour and Travel Agents (MATTA) and bus and lorry owners, and has received positive feedback.
According to Mahmood, if a customer has 10 vehicles, PUSPAKOM can help the customer save 90 minutes of his or her time by reducing the inspection time from 10 minutes to one minute per vehicle.
In addition to undercarriage inspections, PUSPAKOM is also developing AI technology for above-carriage inspections.
This will focus on inspecting safety signs, reflectors, licence plates and other external features that are currently checked manually. The introduction of AI in these processes will further streamline inspections and reduce wait times for customers.
“When we presented this to the Motor Vehicle Inspection Committee (CITA), they were surprised because no other country has used AI as a mainstay of public vehicle inspection. I have been to countries like France and the Netherlands, and I am quite confident that we are the first in the vehicle inspection industry to deploy AI,” he said.
Extending operating hours, meeting increasing demand
To cater to the growing demand for inspections, PUSPAKOM is also expanding its operational capacity by extending operating hours at several branches. For instance, the Glenmarie branch now operates 16 hours a day, allowing the company to serve more vehicles than it previously could with traditional nine-to-five working hours.
“Many operators appreciate this extended operating time because it allows them to bring their vehicles in during non-operating hours, such as at night,” Mahmood said.
He added that this change particularly benefits operators of school buses and airport shuttle buses, as these vehicles are usually out of service at night and can be inspected without disrupting their daytime operations.
Looking ahead, PUSPAKOM plans to introduce even longer operating hours, potentially up to 24-hour service in some locations, which would allow the company to double the number of vehicles it can inspect daily.
This operational flexibility is a key component of PUSPAKOM’s strategy to stay competitive by improving customer convenience. In addition to technological advancements, PUSPAKOM is placing a strong emphasis on improving customer service.
Mahmood mentioned that while the inspection process will remain largely uniform across the industry due to regulations by the Road Transport Department (JPJ), customer service will be the defining factor that sets companies apart.
“The vehicle inspection process will be the same across the industry because it is regulated by JPJ. What will differentiate us from our competitors is the level of customer service,” he said.
In the past, vehicle inspections at PUSPAKOM took more than 75 minutes. Today, the company has reduced that time to an average of 34 minutes per vehicle, thanks to technological upgrades and an increase in the number of branches.
With the introduction of AI, Mahmood explained that PUSPAKOM can further reduce inspection times to less than 30 minutes, providing a more efficient and satisfying experience for customers. Moreover, PUSPAKOM is investing in upgrading its equipment to ensure that inspections are carried out with the highest level of accuracy and precision.
“One of the components of customer service is renewing our equipment and investing in new technology. Our equipment has been around for more than 10 years,” he said.
Furthermore, he explained that PUSPAKOM has identified a new device, about the size of a handphone, that simplifies the process by scanning a larger section of tyre surface in one go, unlike the old method that only measured a single point.
“This not only makes it faster but also provides a more accurate reading. While the device is ready and has been approved by JPJ, it still requires calibration from an external party, which is not available in Malaysia yet. Once that is resolved, it can be deployed, making inspections for 18-wheelers for example much quicker and easier,” Mahmood added.
Another area where PUSPAKOM is innovating is its mobile inspection services. This service allows customers to have their vehicles inspected at their homes, businesses, or other convenient locations. PUSPAKOM’s mobile service has been particularly popular with corporate clients who require inspections for large fleets of vehicles.
“Our mobile service is where we can do any kind of check-up at home, at the shop, or the bank. If you are selling your car, whether at home or a shop, we can come to you, inspect the vehicle and provide the results on-site,” he added. While the cost of the inspection itself is fixed, there is an additional RM100 fee for the first 100km of travel for mobile services.
Currently, PUSPAKOM’s 11 mobile vans are oversubscribed, and the company is planning to expand its fleet to meet growing demand. Mahmood said this year, PUSPAKOM bought another truck and two vans. Next year, they plan to buy more vans.
In the past, vehicle inspections at PUSPAKOM took more than 75 minutes. Today, the company has reduced that time to an average of 34 minutes per vehicle.
Overcoming challenges: changing work culture and public perception
The transition from a concessionaire to a licensee has not been without challenges. One of the biggest hurdles has been adjusting the company’s internal culture to adapt to a more competitive environment.
After 30 years of operating as a concession, entering a competitive environment was a big challenge, but big challenges present big opportunities. In addition to changing the company’s internal culture, PUSPAKOM is also working to shift public perception of its role in society.
Mahmood mentioned that many people do not fully understand the value that PUSPAKOM brings to road safety, the environ ment and the economy.
“We have broken it down to three things: Safety, environment and economy (SEE),” he said.
PUSPAKOM’S vehicle inspections ensure that Malaysia’s roads are safer by identifying and removing unsafe vehicles from the road.
“Around 27% to 30% of vehicles fail our inspection. So, imagine if there were no PUSPAKOM. These 30% of vehicles, which is 150,000 unsafe vehicles, would be on the road,” he pointed out.
In terms of the environment, PUSPAKOM’s emissions inspections help to reduce pollution and improve air quality.
Mahmood said PUSPAKOM also plays a crucial role in supporting the economy by ensuring that vehicles are roadworthy, which keeps businesses and the economy running smoothly.
As PUSPAKOM navigates this new phase in its history, Mahmood has set a bold goal for the company’s brand. He wants “PUSPAKOM” to become synonymous with vehicle inspection, much like how brands like “Xerox” and “Colgate” are often used generically to refer to photocopying and toothpaste respectively.
“In 2026, when competitors are already in the market, PUSPAKOM will be the equivalent of Xerox, Colgate, or Kodak,” he said. – The Malaysian Reserve
