To shelter bus companies from increasing operational costs, Konsortium Transnasional Berhad (KTB) is asking that the government increase bus fares, The Edge Markets reports. The consortium is expected to sink into a loss for the financial year of 2016.

Tan Sri Mohd Nadzmi Mohd Salleh, chairman and MD of KTB stated that due to the goods and services tax and the weaker ringgit, the company’s profit margin is being strained, as operation costs have increased as a result of both factors.

By increasing bus fares, Salleh explained that it would assist by offsetting operational costs associated with spare part purchases and the disposal of old buses. “It is difficult for companies like us to cope with the current situation. If it persists we could record losses next year,” Salleh said.

He also added that the government had approved a 22.6% hike in bus fares which was supposed to be in effect in May this year. Salleh said that it never came about due to the increasing cost of living. Meanwhile, school bus operators struggling with the GST are reportedly increasing bus fares in January 2016.