M'SIA: NEW BUS, TAXI FARES EXPECTED TO BE ANNOUNCED BY NEXT MONTH

KUALA LUMPUR, May 20 (Bernama) -- New bus and taxi fares are expected to be
announced by end of next month, after the proposal was tabled in the Cabinet
says the Commercial Vehicles Licencing Board (CVLB).

CVLB chairman Markiman Kobiran said the new fares will involve stage
coaches, express buses, school buses, mini buses, taxis and rental cars.

"We are waiting for feedback from the Transport Ministry and Domestic Trade
and Consumer Affairs Ministry before submitting for the attention of the cabinet
by end of next month," he told Bernama when contacted here.

Markiman who did not reveal the percentage recommended, added that CVLB's
fare review was submitted to Minister in the Prime Minister's Department,
Mohamed Nazri Abdul Aziz on May 7.

The government had earlier agreed to increase the fare by 30 per cent,
including the 30 per cent surcharge for buses which remain in force.

The last review was made in 2005, where the subsidized diesel was priced at
65 sen per litre compared to the current RM1.43 per litre and the public must
accept the fact that a fare review was inevitable.

However, observers in the industry believe the increase would not be the 60
or 100 per cent requested by operators of public transport, especially stage
coaches and express bus operators.

"The fare review must set the fare hike at an optimum level so as not to
burden users. We also hope that the quality of public transport including
passenger safety will be improved," public transport expert Prof Dr Abd Rahim Md
Nor told Bernama here.

Abd Rahim said the fixing of the optimum fare could be done by ensuring that
the new fares would be able to cover both fixed and operation costs, besides
making a reasonable profit and providing quality service.

""The new fares should be relevant for at least five years with annual
review," he said.


The Peninsular Malaysia Bus Operators Association (PMBOA) and Peninsular
Malaysia School Bus Operators Association had demanded that the bus fares be
increased due to an increase in operational cost, especially the price of spare
parts and workers' salaries, following an increase in fuel price last June.

PMBOA had also requested the government to raise the monthly subsidized
diesel quota from 2,500 litre to 5,000 litre for stage buses, and 9,000 litre
for express buses, based on their need.

-- BERNAMA