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Loss in revenue, gains for the rakyat

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The reason I put the title as such is to tell everyone that when it comes to public transport, it is important for the public to enjoy as much as possible; lower rates. However, by giving lower rates, it will also mean that the government will have to subsidise the potential loss in revenue from all the special rates. For understanding, KTM is has a very small profit for FY2017. It posted a pre-tax profit of RM4.5 million. This was said to be the FIRST in 20 years. On a longer term, it’s accumulated losses are RM2.9 billion. Article in theedgemarkets.com here.

Before everyone starts saying why can’t KTMB be profitable… This is what Singapore’s Transport Minister said about the MRT network in Singapore (which is already taken by majority of Singaporeans today). He said, “On the issue of government grant and subsidies for MRT lines, Mr Khaw said the Government has invested and subsidised heavily to ensure that Singapore’s rail network is “reliable, convenient and affordable”. Article in straitstimes.com.sg here. If it’s already profitable, there’s no need for subsidies…

This is why I welcomed the MY100 initiative by our Transport Minister Anthony Loke Siew Fook. Earlier article here. Now, he has more good news for all of us who thinks driving is expensive. Beginning April 1, Malaysians are granted a 20% discount when using the KTM Komuter service, said Transport Minister Anthony Loke Siew Fook. This is to help reduce the cost of living of Malaysian commuter users and increase ridership. KTM’s revenue is expected to reduce by RM43 million yearly and this would be met by the Railway Assets Corporation (RAC). The discount given would be of benefit to around 94,000 commuters daily on five routes. He said, “The public can enjoy the discount for one year and we will be reviewing it to determine its effectiveness. Commuters who are already enjoying a 20% discount when they go cashless will get another 20% discount on top of this.” Article in TheStar.com.my here.

It’s not easy to change habits but imagine the potential savings over the long run and the potential that those savings could become savings for the first property? MY100 has started and now, 20 percent discount for KTM’s services have also started. Well, Anthony has started the ball rolling. Perhaps it’s time we ‘score’ together. As for the loss in revenue, when more people take KTMB services, I think it will just be time before the loss in revenue is recovered. Happy travelling and yes ETS is super comfortable compared to riding in a sedan car. Safer too.

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Article written and edited by Charles. News article summarised by Dina Batrisyia. 21 Feb 2019.

Next suggested article: Deciding to buy a property? think of the 4Ps

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