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Don't stop subsidy, say busmen
Published on: Saturday, July 16, 2016
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Kota Kinabalu: The Sabah Omnibus Operators' Association has urged the Federal Government to continue with disbursements of the Interim Stage Bus Support Fund (ISBSF) to enable them to continue their operations. The association members comprise operators of the Luen Thung Transport Co Sdn Bhd, The Tuaran Union Transport, Labuk Road Bus Co Sdn Bhd, Labuk Road Bus Co Sdn Bhd and Kinabalu Transport, largely operating in the city and in Sandakan.

Its Chairman David M Chu said the fund, which was supposed to support struggling bus companies to keep afloat, has been late this time following its initial six month renewal period ended Dec 31 last year.

"Now it has been over six months," he pointed out.

"Although it is usual for the funds to arrive late to the operators, when we tried to reach out to the authorities concerned they did not provide us a clear response over the agreement or when the funds would be distributed," he explained.

Chu said this during a press conference over the matter, pointing out the authority concerned was the Land Public Transport Commission (SPAD), the administrator of the ISBF.

The fund which was launched in 2012 has benefitted some 162 bus operators and 332,232 passengers across 656 different routes nationwide.

In August last year, SPAD chairman Tan Sri Syed Hamid Albar said for the Commission to continue assisting these operators,the ISBF will be eventually replaced with a more permanent scheme known as the Stage Bus Service Transformation (SBST) Scheme.

"The scheme to be launched in other states in the forthcoming week, is expected to use buses under the brand of MyBus which will be the long term solution in enhancing the service level of stage buses," he said.

He added that the pilot operation of the MyBus service commenced in Perlis on Aug 1 last year and will be officially launched in Seremban, Ipoh, Kuala Terengganu and Kuching on Aug 25.

However, it could not be ascertained whether such scheme would be introduced in Sabah and the ISBF would be ceased.

According to Chu, many bus companies have been bleeding for years due to stiff competition from other public transportation providers, and more recently the minimum wage hike, on top of operational and business commitments like rising spare part prices, servicing, fuel, purchase of new buses and others.

And thus, he said, the ISBF was some sort of a lifeline for them.

Chu pointed out if the worse were to come, close to 400 workers will be out of work and their family's livelihood would also be affected.

He added that bus operators were also not allowed to increase their bus fares and had not done so since 2008 despite rising fluctuating prices of fuel, minimum wage hike as well as the implementation of the Goods and Services Tax, that saw prices of items go up.

"We are concerned as the last time we received the funds was last year, and subsequently we had to use our savings to manage our operations.

"We may have to stop operating if we can't find any other financial source," he lamented.





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