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Hello reader,
I’ve always found this idea that governments usually have a “monopoly on violence” really interesting. The word “monopoly” tends to be used within business contexts, but in this case it refers to how governments are typically the only legitimate wielder of violence in a country, which manifests through law enforcement.
It speaks to how many aspects of our daily lives and experiences are gated behind a government’s control. Violence, after all, is something that every person is capable of. Sometimes we feel inclined to it, but in some cases the only thing stopping those extreme emotions from boiling over is the deterrence of the punishment that would follow suit.
In a similar vein, one of the ways that government control manifests is through licenses. After the government decides what is and isn’t permissible, licenses serve as a stamp of approval for the public and companies to continue with certain operations.
In Malaysia, there’s one particular license that used-car marketplaces Carsome and MyTukar – the local unit of Carro – are vying for. Let’s take a look at their chances of winning it.
Today we look at:
- A license with huge potential for Carsome and Carro
- Singapore’s plan to invest US$742 million into AI development
- Other newsy highlights such as VinFast’s new deals in Indonesia and Masayoshi Son eyeing a US$100 billion raise for an AI chip venture.
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License to… inspect?
Image credit: Timmy Loen
The license involves the inspection of commercial vehicles and the transfer of vehicle ownership from one person or company to another. This could give Carsome and Carro more revenue opportunities, but the process of getting it may not be as straightforward as some might think.
- Winner takes all: Currently, Malaysian law stipulates that all commercial vehicles need to be inspected by Puspakom, the incumbent license holder. The government has tried to progressively phase out its monopoly, but efforts have been slow-moving since 2018.
- Others on the starting line: Carsome and Carro will face tough competition for the license. Other companies going for it include the likes of government-linked corporation Sime Darby and family-run conglomerates Berjaya and Naza.
- Beyond the money: While getting an additional revenue channel is a huge factor, the license could benefit both firms in other ways. This includes building credibility and opening up opportunities to work closer with the government and state-owned investors.
Read more: Carsome, Carro are lobbying for a ‘golden goose’ but winning it is tricky
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