Proposal for bus fare hike under study

New Straits Times, 10 January 2008
By Kamachy Habimanan and Minderjeet Kaurnews@nst.com.my

KUALA LUMPUR: Bus operators have been told to be patient while their proposal for a fare hike is being studied.

Commercial Vehicle Licensing Board (CVLB) chairman Datuk Markiman Kobiran said the board was in the final stages of studying proposals made by the bus operators.

"We are considering the fare structure. But sabar-lah (be patient). Let us complete our study first," he said.

Markiman was commenting on remarks made at a news conference yesterday by Pan Malaysian Bus Operators Association president Datuk Mohamad Ashfar. He said the association wanted all fares for express and stage buses to be raised by 100 per cent this year.

During the news conference in Johor, Mohamad Ashfar said the association was working out the exact fare increases and planned to submit a memorandum to the government next month.
"The government has been imposing rules and regulations on bus operators. And if it wants us to meet all its requirements we need money," he said.

The association represents 108 bus companies throughout the country.

Mohamad Ashfar said there were many reasons for fares to go up.

He said the CVLB had issued too many bus permits, while ticket collections had dropped because of increased car ownership.

Illegal taxis, especially in Sabah and Sarawak, were also affecting bus operators' bottom line. Bus companies were also finding it more difficult to obtain charter licences as well, he said.

Operating costs had been rising, especially since the CVLB imposed age limits on buses -- 15 years for stage and 10 for express buses. And the cost of chassis and parts had gone up as well.

He also said tour buses operated by the Tourism Ministry were affecting their business.

Many bus companies would have to close down, if these issues were not addressed by the government, he added.

Markiman said the bus companies should approach the Domestic Trade and Consumer Affairs Ministry to look into their diesel subsidy to reduce costs. And they should discuss the cost of chassis with the International Trade and Industry Ministry.