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.
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Ahmad Maslan says back in April “GST reduce industry cost”. Why now all cost increase due to GST ???
He said that was supposed to be april fool
First class comedian. Excellent director
Because u only have 1 job, you should work harder and have at least 3 jobs.
So is true. To burden or to ease the Rakyat with the hands of the BN government.
Tambang bas naik
Tambang bas sekolah naik
Jamban entry naik
Viagra naik
Tapi one day Viagra become so expensive,little bradder John tak boleh naik.
When the TPPA goes into effect, the price of Viagra will surely naik. The government is saying the prices of medicine won’t go up after TPPA. They said about cost of living won’t go up after GST, didn’t they? Looks what is happening now. Can you trust the G when a bunch of clowns are making the decisions?
commented by Otak Udang Minister.. Patut la Malaysia moving backward..
no fear…..Syukur ada BR1M to cover bus fare hikes….
Naik takpo. Brim kan ado.
First KTM now buses? Can’t the government do something to reduce public transport costs? Isn’t this one of the reason they said they collected GST for? I don’t understand why the government don’t understand that they were put in place by the rakyat to service the rakyat’s needs – especially the lower income people – the ones who depends on public services. Mind boggles when GST was slapped on government services for the rakyat. Decades of overspending, corruption and mismanagement have come home to roost and it’s the rakyat who is being asked to shoulder the burden. Scared for the near future.
Why 2 dislikes? What roc said is true, this government is corrupt to the core and most of the ministers were picked not for their intelligence or caliber but because they are in the circle of PM elite and will say “yes” to everything he says but most of all they are good comedians.
What happen to the proposal for all civil servants to declare their assets? Does it not apply to the minister? They would dare to dislodge that info now would they; we would have easily known where the 2.6B came from.
They are not good comedians but unfunny clowns actually.
This is my comment as a MD of a private company and do know bus business.
In the time of newer bus companies providing excellent bus service, adding new fleets every year, expanding to new territories and of course making hell lot of money. This KTB (biggest fleets and most extensive coverage) is the least favourable choice to bus users due to extremely bad services and of course aging fleets of buses.
Now when their margin is thinning the MD is asking for price hike.
Go fix fix your bus driver, customer service, bus fleets, and increase the operational efficiency. Everything is in a bad shape. That is the reason your margin is low.
You are an MD not a politician to steal money from the rakyat. Do your work.
Masih ingatkah lagi dimasa sykt bas ekspress mohon kenaikan tambang. Masa tu transnasional dengan angkuhnya sanggup ambil alih laluan mereka. Ha….sekarang rasakan apa yang pengusaha lain rasa.
The government should exempt taxes on these public transport spare parts . Just let these operators claim the taxes back from Kastam. They are providing public services to the rakyat , therefore should justify an exemption on taxes.
Besides that, to prevent every company asking for a fare raise every now and then, it is time for the government to step in and bring in government owned express buses to provide more competition in the industry just like Kedai 1 Malaysia. This is public transport service and the government should put in more effort to safeguard the people’s interest.
Pekan n his fellowship must go down