Cabinet postpones new transport fares

Muhyiddin said SPAD told now is not right time, with GST coming in next month.

MUAR: The Cabinet has asked the Land Public Transport Commission (SPAD) to postpone increases in public transport fares that was announced two days ago.

Deputy prime minister Muhyiddin Yassin said the Cabinet had decided that the increase was not suitable in light of the current situation.

He said the cabinet believed there was a basis for the increase as the fares had not been raised for a long time, and operators were burdened with losses, affecting their ability to pay suitable salaries to workers.

“The issues which cropped up included efficiency. The basis is there but the issue here is timing,” he said here.

SPAD had announced increases of 20%-67% for taxis and rented cars, and 22.6% increases on express bus fares.

The increase followed the rise in the costs borne by operators of public transport including maintenance.

SPAD chairman Syed Hamid Albar said the coordination of fare rates was made after taking into account the needs of the operators who were burdened by the increase in the prices of goods and the interest of the public.

Muhyiddin said the SPAD announcement was unsuitable as it was untimely with the Goods and Services Tax to be implemented on April 1.

“I think maybe we (Cabinet) is asking the matter to be postponed because the timing is not too suitable especially in light of the implementation of the GST.”

“The burden of consumers may increase especially those staying in towns and using public transport and so on,” he said.

SPAD should look at the situation as a whole and wait for a suitable time later to announce the increase in fares.

- BERNAMA