Rapid KL City Shuttle

No more subsidies for RapidKL, says Najib
by Kevin Tan
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KUALA LUMPUR: The government will no longer provide subsidies to Rangkaian Pengangkutan Integrasi Deras Sdn Bhd (RapidKL) as part of its plan to cut down subsidies, Deputy Prime Minister Datuk Seri Najib Razak said yesterday.

Speaking to reporters after chairing the Cabinet Committee on Public Transportation in parliament, he said the decision takes effect immediately and there will be “some adjustments” to RapidKL’s LRT and bus fares. The “rate of adjustments” will be announced later.

“RapidKL will not impose subsidised rates and would compete on a level playing field with other bus operators,” Najib said.

RapidKL, which is 100% owned by the Ministry of Finance, operates two light rapid transit (LRT) systems — the Ampang Line, which was formerly known as STAR, and the Kelana Jaya Line which used to be called PUTRA.

According to RapidKL, the two lines carry about four million passengers each week. After taking over the Intrakota and Cityliner bus services, the company operates 165 bus routes that cater to some 192,000 passengers in the Klang Valley every day.

“This is part and parcel of our effort to streamline our policy towards subsidies but more so, we don’t want them to kill local companies,” Najib said.

He explained that the government had considered the plight of bus operators in the Klang Valley and there was a “moral principle” in the decision as bus operators were “going bankrupt” due to government’s subsidy for RapidKL.

There were a number of bus companies in KL that used to be profitable but they were currently losing money, he said.

On the effects of the removal of subsidies, Najib said: “There will be a bit of adjustment but we are saving taxpayers’ money.” He said it was “unfair” to use taxpayers’ money to subsidise RapidKL’s services.

Najib also said the government would reveal the amount of subsidies provided to the company.

“We will also study how RapidKL can complement what is being offered by local bus companies,” he added.

The Cabinet Committee has also proposed the setting up of a public transportation commission at the national level to streamline functions such as licensing and regulating public transport, which is currently under 13 agencies.

Najib said it was better to have a single authority to control, develop and regulate the country’s public transport system in an effective and orderly manner.

“This proposal needs to be examined in detail and it will be discussed by this committee again before it is forwarded to the government… Our idea is to establish a single authority that is responsible for public transportation nationwide,” he added.

RapidKL fares likely to go up as subsidy is scrapped
By : Eileen Ng

Datuk Seri Najib Razak addressing the media after the meeting of the Cabinet Committee on Public Transport. With him is Datuk Ong Tee Keat.


KUALA LUMPUR: RapidKL bus fares are expected to go up as the government pulls the plug on the subsidy for the company.

However, Deputy Prime Minister Datuk Seri Najib Razak gave an assurance that the interest of the people, especially those in the low-income group, would not be affected.

He said the subsidies were withdrawn with immediate effect to enable RapidKL to compete on a level playing field with other private bus companies.

"This move will see RapidKL complementing the operations by other bus compa-nies. It is not fair to use tax-payers' money to subsidise RapidKL.

"There will be some adjustments (to fares) but at the end of the day, it will save taxpayers money," he said after chairing a meeting of the Cabinet Committee on Public Transport.





Those present at the meeting included Second Finance Minister Tan Sri Nor Mohamed Yackop and Transport Minister Datuk Ong Tee Keat.

Najib said an announcement on the new fares would be made later as more time was needed to study the implications.

"Our principles are that if the transport system is used by the high-income group, we will liberalise the fares by setting a minimal fare, but for the low-income group, we will control (the fares) in stages."

He said the discontinuation of the subsidy is part and parcel of the government's efforts to streamline its policy towards subsidies.

"But more so, we don't want them to kill off the local companies. Many are either dying or going bankrupt."

He said the government was thinking of setting up a public transport commission which would act as a single authority for licensing, enforcement and monitoring.

"The current situation is so fragmented as it involved 13 ministries and agencies. The cabinet committe decided that it was better to have a single authority to ensure an efficient and smooth public transport system."

He said the matter would be deliberated at the next cabinet committee meeting.

RapidKL will study effects of removing subsidies


PETALING JAYA: Klang Valley’s largest public transport operator RapidKL will carry out a study as to how it will be affected when government subsidies are removed.

Its communications general manager Ebi Azly Abdullah said RapidKL would also have to discuss with several Federal Government authorities over the matter.

He was asked to comment on the government’s announcement that RapidKL would no longer enjoy subsidies from the Government, requiring them to raise their fares.

On Wednesday, Deputy Prime Minister Datuk Seri Najib Tun Razak said the Government was removing subsidies to RapidKL because it was unfair for it to enjoy the advantage over other private public transport companies.

When asked about subsidies enjoyed by RapidKL, Ebi Azly said: “I have no comment on the matter,”

On the setting up of a Public Transport Commission to handle all matters on public transport, Ebi Azly said RapidKL would support any move towards improving the quality of public transport in the country.

Meanwhile, consumers were unhappy with the removal of subsidies to RapidKL.

Fomca secretary-general Muhammad Sha’ani Abdullah said it was unfair for subsidies to be scrapped, resulting in an increase in fares.

Public transportation, he said, was the government’s responsibility and the reason for subsidy was to provide adequate and comfortable transportation for the public.

“Public transport is not a commercially viable enterprise and therefore should be led by government bodies,” he said, adding that not only RapidKL but all operators should enjoy subsidies.

Researchers Intan Nurlia Mohd Mohdi, 23 and Hamimah Johar 24, said any increase in fares would add to the already high cost of living in the city.

“We use the bus from Pantai Dalam to KL Sentral and then to Hospital Kuala Lumpur. We spend an average of RM8 per day.

“If they increase the fare, we are going be tight every month. We have to pay rent, buy food and there are other expenses as well,” said Intan Nurlia.

Pensioner S. Nadaraja, 70 said taxes should be used for the benefit of taxpayers.

“I do not think people will be happy with the increase because it is not fair,” he said.

In Penang, Rapid Penang Sdn Bhd chief executive officer Azhar Ahmad announced yesterday the fares would be revised but said the increase would not burden the people much.

Fare hike must be justified, say users
By FAZLEENA AZIZ


REGULAR bus users want any possible increase in RapidKL bus fares to be justified and not pose a burden to the people who rely on the service.

An increase in the bus fare is likely in the wake of Deputy Prime Minister Datuk Seri Najib Tun Razak's announcement on Wednesday that the government would be pulling the plug on the subsidy for the bus service company.


Better service needed: Ham feels that the people’s reaction will depend on the new fares but frequency of the services needs to be improved.

Najib said it was unfair to use taxpayers’ money to subsidise RapidKL if it was killing other local bus companies.

Many users expressed concern over the quantum of the increase to be imposed while others voiced unhappiness at the inefficiency of the present bus services.

They said that if the transport system was efficient, more people would be using it and there would more business.

For researchers Intan Nurlia Mohd Mohdi, 23, and Hamimah Johar, 24, the increase will add to the already high cost of living in the city.

“We use the bus from Pantai Dalam to KL Sentral and then from there to Hospital Kuala Lumpur.


Intan Nurlia: She will have to cut back on other expenses if the bus fares are increased.

“We spend an average of RM8 per day; if they increase the fare, our budget is going be tight every month. We have to pay the rent and buy food, and there are other expenses as well,” they said.

They said that as fresh graduates who had just started to work, the likely increase could find them cutting back on other expenses to balance their monthly budget.


Pensioner S. Nadaraja, 70, feels that taxpayers' money should be used for the benefit of taxpayers.

“The taxpayers' money should benefit the taxpayers and not otherwise. I do not think people will be happy with the increase because it is not fair.


Nadaraja: ‘How will the lower income group cope?’

“I suppose the only solution is a minimal increase of two to three per cent, not 100%,” said Nadaraja.

He also raised the issue of how the low-income group would manage with the fare hike.

Student Gray Ham, 20, said an increase in fares could lead to people car-pooling or driving to work.

“It would still be okay if they raise the fare from FM2 to RM2.50 or even RM3.

“The inevitable result is an increase in people’s monthly expenses unless they plan to increase the fare by only five sen.

However, the crux of the issue is that people who do not have cars are forced to use the bus service even if there is a fare increase,” said Ham.

He added that RapidKL should improve its services and increase the frequency of the buses.

Bus driver called passenger 'anjing'
Ili Liyana Mokhtar

KUALA LUMPUR: All Adiviah Errakiah wanted to do was visit his ill brother in Ampang and spend a quiet day with him.

Instead, the 57-year-old found himself showered with insults when he asked the driver of the air-conditioned Rapidbus he was travelling in to stop smoking.

"After I asked him to stop smoking, the driver began to shout and swear at me in a menacing manner. He used words such as 'anjing' (dog) and a racial epithet to address me," he said.

Adiviah, who has been taking the U29 route to his sibling's home for the last 10 years, was shocked when the bus driver even suggested that he disembark from the bus if he was going to be "difficult" and "fussy".


To make matters worse, a bus inspector who came to check on the commotion ignored his complaint and told him and the bus driver to resolve the matter themselves.

"I really hope that the management can look into this problem, as they may lose loyal passengers if they do not improve their poor service," he said.

Adiviah added that as a professionally-run company, RapidKL should train its bus drivers to treat its customers with respect.

Fuel relief: RapidKL, KTM won't raise fares
By : Minderjeet Kaur

KUALA LUMPUR: RapidKL has pledged to maintain fares on its bus and light rail transit services.

Further good news for commuters came from Keretapi Tanah Melayu Bhd, which also said it would maintain its Komuter fares.

RapidKL and KTMB said their focus now was on improving services.

RapidKL will be getting new coaches next year, which will be more disabled friendly.

KTMB managing director Datuk Mohd Salleh Abdullah said the national rail carrier will not increase fares despite the increase in fuel price.

It will instead replace its diesel engines with electric locomotives to cut costs.

Salleh said it was unfair to increase fares now.

"People are feeling the pinch due to the fuel price hike. Instead of burdening them, we are looking at ways to cut our costs."

Salleh spoke after the launch of the Rail Solutions Asia conference, which brings together top railway personnel and railway suppliers.

At present, only KTMB's inter-city Komuter locomotives, which serve the city, Seremban, Rawang and Klang, run on electricity.

Salleh said long-haul trains would be replaced with electric locomotives. These will also run faster than the 100kph limit of the present locomotives.

"It is also environment-friendly and is safer for long distance travelling."

However, he admitted it was difficult to offer low fares and cut costs at the same time, saying only India and Japan rail were making money.

"We are service providers. It can be difficult to make profits as we also have to keep our fares low.

"The only thing we can do is look at ways to cut our operating costs."

The engines will be fully replaced by 2014.

However, Salleh said, the company has proposed higher charges for goods.

Scomi Engineering confident of smoother ride
By Kamarul Yunus Published: 2008/06/13
BusinessTimes

SCOMI Engineering Bhd, a wholly-owned subsidiary of Scomi Group Bhd, remains optimistic that its logistics and engineering businesses will steadily improve throughout 2008, in anticipation of a surge in demand for public transport, because of the current escalating fuel price.

Its president, Hilmi Zaini, said Scomi expects buyers from Malaysia and overseas to purchase more than 300 buses from the company this year.

Scomi Engineering's plant in Rawang can produce some 400 buses a year. Last year, it produced some 300 buses, of which 120 were exported to places like Hong Kong, Bangladesh, Macau and Cyprus.






"For 2008, we expect almost the same volume as last year, with confirmed orders for 100 buses from Hong Kong," Hilmi said, taking the media for tour around Scomi Engineering's logistics and engineering facilities for buses, special purpose vehicles and monorail in Rawang yesterday.

Scomi Coach Sdn Bhd and Scomi Rail Bhd operate the group's logistics and engineering businesses respectively.

The group is targeting new overseas markets for its coach, stage and double-decker buses, namely India, where there are plans to set up a manufacturing and assembly plant to produce monorail and buses in Mumbai.

"This will certainly complement our sales of buses in the Indian market," Hilmi said.

Through aggressive marketing, the group also expects revenue from its bus segment to show a positive result this year.

"Last year, the bus segment registered a revenue of RM21 million and we expect to achieve similar or slightly better results this year, due to greater demand for the use of public transportation," he said.

Apart from building new buses, Hilmi said the group is refurbishing 150 old RapidKL buses, which were left idle in two yards that do not belong to Scomi.

"We have completed refurbishing 50 of these buses and expect to complete the whole 150 buses in the next two months," he said.

Hilmi was commenting on reports that more than 1,000 RapidKL buses have been left idle in two yards.

He clarified that the buses for RapidKL are not supplied only by Scomi but also other companies, through tender basis.

"For the last three years, Syarikat Prasarana Negara Bhd had purchased about 1,000 stage buses, of which we supplied 285 units.

"The rest were supplied by five or seven other companies," he said.

On its monorail business, Hilmi said the group is bidding for contracts in 20 cities worldwide.

"Over the next 12 months, we expect to see tenders coming up, namely in India and Africa. Currently, there are four or five tenders, which are at the final proposal stage," he said.

My observation of a Rapid KL bus...



Edgy looking front windscreen and the LED destination sign, looks different in shape too...