How much revenue was lost through outsourced number plate bids?

Question

Accepted Answer

Millions in Revenue Lost Due to Outsourced Number Plate Bids Under Previous Administration

Millions of ringgit in government revenue were lost due to the previous administration's decision to outsource the bidding of special vehicle registration numbers to private firms. Under this arrangement, these private entities retained the majority of the funds generated, with the government receiving only a fixed RM1 million for each special series handled. This practice led to significant financial leakage, estimated to be substantial when considering the volume of special number series issued over time.
Substantial Leakages Estimated Across Multiple Number Series

It is estimated that approximately 30 special number series were previously managed through private firms. With an average leakage of RM5 million per series, the total estimated revenue loss amounts to nearly RM100 million. This highlights a systemic issue where the government was deprived of substantial income that could have been channelled into public funds.
Direct Comparison of Bidding Proceeds

The recent bidding for the MALAYSIA registration series itself collected RM13.2 million, demonstrating the potential revenue that can be generated. In comparison, the "V" and "F" plate series, which were conducted by the Road Transport Department (JPJ), recorded sales of approximately RM22 million and RM17 million respectively. These figures further underscore the disparity between direct government management and the outsourced model.
Limited Government Returns from Private Handling

Under the previous system, non-government entities were granted distribution rights for special plates, for which they paid JPJ a flat RM1 million. This fee was significantly lower than the actual revenue generated from the bidding of these plates. Plates such as UP, G1G-G999G, X, XX, YY, UU, GTR, GG, SAM, K1M, T1M, A1M, US, SMS, NBOS, and NAAM were all introduced through this method, indicating a widespread practice that benefited private operators at the expense of government revenue.

Reading history

Hide →

This history is cleared when the page is closed.

How much revenue was lost through outsourced number plate bids?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends