Syarikat Kenderaan Melayu Kelantan (SKMK) said today it has deferred the decision to cancel its Cityliner stage bus service in Kelantan until a permanent solution is found to check the company’s losses.
Tengku Hasmadi Tengku Hashim, executive director of parent company Konsortium Transnasional Berhad (KTB), said SKMK is incurring huge losses due to rising operational costs and competition from other modes of public transportation, including pirate taxis.
“However, in the interests and welfare of the people in the state, we have to defer the decision to cancel the service on 17 routes,” he told Bernama.
He said the company had been offsetting losses with profits from KTB’s other subsidiaries but added that almost all the other companies are also incurring losses.
Kelantan Menteri Besar Nik Abdul Aziz Nik Mat had advised SKMK against scrapping the Cityliner stage bus service on the 17 routes in the interests of commuters, especially school children.
He said the state executive council had approved an aid of RM100,000 monthly for four months from this month to the company.
Tengku Hasmadi said the company was thankful to the state government but added that the money was insufficient to offset the losses.