Speaking to FMT, several express bus operators lamented the state of the industry and the welfare of its operators who they said, were in “deep trouble.”
Pan Malaysia Bus Operators Association (PMBOA) president Ashfar Ali said that while the last bus fare increase was in 2008, operating costs had risen steadily through the years.
“Operators have to slow down on renewing their fleet, let alone expanding it.
“Some of us even have to cut down on the frequency of our trips,” he said, adding the biggest losers were the passengers.
Tajudin Mohamad Yunus, general manager of both the Utama and Edaran express bus companies, said the situation was so bad, bus drivers were left with no choice but to take pay cuts.
“It is difficult for bus companies to pay drivers the market rate any longer so they have to take a pay cut.
“The Goods and Services Tax (GST) has badly affected us both directly and indirectly.”
He added that sometimes, his companies did not even have cash to roll for the purchase of diesel.
Repayment of bank loans was another headache. Abdul Halim Mohamad of Darul Naim Express, admitted that there were times he was forced to delay repayments for up to three months.
“Express buses are GST-exempt but the price of everything has gone up due to the GST and we can’t pass this on to the passengers.”
Head of operations for Konsortium Transnasional Berhad (KTB), Mohamad Kamal Muda said the inability of bus companies to obtain loans to change old buses meant more maintenance was needed for their existing fleet.
This he said, led to longer maintenance periods which caused delays in trips at times.
He added that as the largest bus operator in the country, the problem was worse for KTB due to their higher overheads.
There are currently 4,718 express buses on the road at present.
