Loss-making Keretapi Tanah Melayu (KTMB) says that it will need to increase its fares in order to break even, The Star reports. It stated that low ticket prices was the primary reason it was incurring losses.
According to KTMB chairman Datuk Nawawi Ahmad, the country’s main rail operator can only balance its books if it is allowed to increase the fare by two sen per kilometre. He added that it suffered RM50 million in losses every year, but this was not due to low ridership.
“We have about 52 million passengers using KTM annually, so it’s not the issue of ticket sales,” he said, adding that the reason was the pricing of tickets as defined by the Land Public Transport Commission (SPAD). He said that presently, KTMB’s operating cost per kilometre was higher than the fare per kilometre it was charging.
Competition was also eating into business, with KTMB losing some 15,000 passengers daily whenever the Light Rapid Transit (LRT) rolled out discounts for the public. “We have 140,000 passengers every day, but when LRT offers discounts for routes that are similar to ours, we lose customers,” Nawawi explained.
He said the company raised capital recently by selling off its stake in Sentul Raya for RM252.42mil to YTL Land & Development. “We’re in a situation where we need a financial boost in order to increase the quality of our services, and we don’t want to burden the Government,” he said.
Nawawi added that in order for KTMB to remain competitive, the company will enhance its services by improving train frequency and punctuality during peak hours.
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LRT just increased fare last year, mana ada discount?!! Bodoh kantoi kelentong.
Build the farking separate rail line for cargo, free the current route for Komuter and intercity, then can increase frequency, more people will want to ride Komuter then.
Ask govt la, can allocate billions for MRT, why not for KTM? Telor mana telor?
OMG…wat to do? All GLC company facing hard time now, “drying” …so it need our $ to survive…lol.
Please do it. How not to increase when the RM keep dropping in value and you need to service your loan?
Sigh. There goes another burden for us.
Sigh. There goes another burden for us…
KTM will improve its sales if they improve their online booking system. If you look at it now. It didn’t change for 15 years…. so old n anarchic. Look at the airlines booking. It should be as easy to navigate. And payment process like that. Think some sales went to buses n airline due to now need to personally go to ktm to buy or suffer using an unuser friendly portal..
not the sales problem,the ticket price main cause
Fully agree with Raymond. Standard reason for all GLC in Malaysia. Never even look at how to improve the company. That is why our GLC cannot compete globally
Could not agree more!!!
Booking page look and feel like page from decade ago
Not to mention difficulty during selection n booking …esp using smartphone
Dear Raymond, despite what U said is so true, KTM will never change bcos to change means 2 improve. KTM(M) stand for Keretapi Tu Memang Menusahkan.
Despite giving your best comment to solve the problem, U still get an Asshole who “dislike” U. Merry X’mas & Happy New Year to all.
everything also increase. salary hardly increase… we’re doomed for end days.
You said ridership is health so the necessity to increase ticket prices is to cover cost. BTW is profit the prime motivation for KTMB or controlling cost, if it is the former a sign of weak Management and Directors.
you refuse to change but again u blaming someone else for losing customer..
bolehland mentality
I thought it was just increased recent years? Don’t keep asking for increase. The rakyat already beban with many barang naik.
It’s how you run the company since ticket sales is not a problem. Very simple if the management really want to improve and not keep on dedak by asking for increase. Keep cost low, improve efficiency and prevent leakages.
There is a lot of dead wood lying around KTM like any archaic organization. Chop it off, put in some new blood ala Tony Fernandes and they will do wonders in no time.
Train fare up, GST up, house prices up, car prices extremely up, fuel price up,debts up, basic food prices up hell even water oso up, everything up. The only thing down is the rakyats bank balance. Terima kasih semua…
Wanna increase price?!!! improve your lousy service 1st ler!
this is because of commision man play around that make equipments price hingest than it should be at the end consumer has to forced bear the burden.
KV KTM Komuter aside,
Northern KTM Komuter is overcrowded especially during weekends.The fares is almost 30-40% less than intercity bus service. Current service is killing the bus service. If not breakeven, at least raise to match bus price. The Bus ticket has not budged for years.
Also, they need to introduce free seating car. So many empty seats on the ETS.
I think…it could be any reason for not allowing KTM to increase the ticket price…theoretically .. you look where are those KTM Land located..by incurring losses each year … this will force KTM to sell their land/property/asset… from there…u figure out…
Kalau betul KTM hilang customer sebab LRT bagi diskaun, KTM punya solution nak naikkan tambang? Bijaknyee….lagi la KTM hilang banyak customer..
Tapi sejak bila LRT bagi diskaun? Tmabang aik ada la.
If you live in singapore or any first world country they raise their ticket fair every year.you want good service you pay for it,nuff said.
yeah, “fair” enough if you use the KTM or LRT everyday to talk nonsense. Keep your fingers clean when you tap the phone.
Yes, but where the frk is the “good service”? And efficiency/productivity?
bad idea to increase fare, existing price is high enough, Public transport is suppose to serve the people, not give more burden to them.
How LRT can cause losses to KTM? Can i choose LRT to go to Mid Valley?
Wow…what a big bodeking statement..”in order to increase the quality of our services, and we don’t want to burden the Government,” – then is it ok to burden the rakyat????
The coming Year 2017 is “semua-harga-naik-lagi”
First thing is you need to catch those illegal immigrant workers who sneak in your train without paying their fare. I could see so many in Kepong station doing this thing and they mostly get down in Bank Negara station.
2nd thing is to ask the government to exempt you people from gst when you buy spare parts from overseas to repair your train sets.
Ask Najib to tolong, he has lots of money
LRT got discount between 6-7am.
And now fare calculated based on block.. cheaper for long distance compare previous.
KTMB is akin to TNB. Legacy from government agency days e.g. cost of manpower is skyhigh (pensions, medicals, other perks). They also need to look at their productivity. Too many people doing too little job. Last but not least is their business segmentations. Where is the cargo vs passengers vs special loads etc. When was the business model and long term strategy for KTMB reviewed? With ridership numbers coming up, Inter Malaysia and intra Asean cargo building up, where is KTMB positioned? Please take a good look at your internal controls and business segments before hiking up the tickets price!
to balance its book or to balance the debit to shareholder??
lies. bullshit. semua ini semua statement2 neutral. you seriously think peoplw will believe your losses are caused by other people’s fault? if your management doesnt figure out how to do lean businesses, revamp your sloppy, tardy system in mind with how much your corporate and management fat cats are misusing company money you are going out of business.
buat malu govt bailout public transportation. sama cerita dgn MAS. butoh