Government asked to bailout private transportation companies

Photo from spad.gov.my

Konsortium Transnasional Berhad (KTB) chairman Mohd Nadzmi Mohd Salleh has urged the government to help troubled private public transportation companies in the country.

This is to prevent such companies from shutting down their operations due to loses, he told Bernama when commenting on a statement by Minister in the Prime Minister’s Department Nor Mohamed Yakcop that problematic bus companies were required to resolve their issues prior to obtaining government aid to resume operations.

The media had reported that KTB may terminate its Cityliner stage bus services in six states next month if no party came forward to help them from continued losses.

Mohd Nadzmi said the losses experienced was not new and should have long received government assistance, adding that the termination of bus services would affect Kelantan, Terengganu, Selangor, Kedah, Penang and Pahang involving 80 routes and 400 buses.

“Among the reasons for the losses are high operational costs and fares controlled by the government,” he added.

He said the government should not regard the matter lightly as public bus operators incurred losses each year, while the government only protected public transportation companies under the government, to fulfill their social responsibility to the public.

“In the past we were able to cover the losses of Cityliner subsidiary companies with the help of express bus companies, but when express bus companies also started incurring losses, the problem has just grown bigger.

“This has led us to conduct a study to stop the stage bus services although it is our social responsibility,” he said.

Previously, KTB Executive Director Tengku Hasmadi Tengku Hashim said the company had incurred RM10 million in losses each year following high operational costs and competition from other express bus companies.

– Bernama