Cabinet tells SPAD to shelve public transport fare hike

Deputy Prime Minister Tan Sri Muhyiddin Yassin says the Cabinet has decided to put a hold on the increase in public transport fares. – The Malaysian Insider pic, March 21, 2015.Citing wrong timing, the Cabinet told the Land Public Transport Commission (SPAD) today to postpone the implementation of the fare hike for public transportation, the New Straits Times reported.

Deputy Prime Minister Tan Sri Muhyiddin Yassin reportedly said that the timing of the fare hike was "unsuitable" as it would coincide with the implementation of the Goods and Services Tax (GST).

“The Cabinet has discussed the matter and agreed that there is a basis for the hike due to the rising costs of operation and maintenance and the last fare hike was six years ago.

“However, the timing of the hike is unsuitable because, with GST being implemented at the same time, it would further burden the public. Therefore, the Cabinet has asked SPAD to postpone the hike,” said Muhyiddin, as quoted by NST.

This comes after various parties urged SPAD to review the public transport fare increase which is seen as a burden to the people.

It was reported that Deputy Transport Minister Datuk Aziz Kaprawi had said he viewed the matter seriously as the increase of 20-67% was rather high.

"SPAD should hold discussions with the Ministry of Transport and Ministry of Domestic Trade, Cooperatives and Consumerism for the best solution.

"We should not burden the people, especially those who commute by public transport daily as it will increase their expenses," he said in a Bernama report.

Meanwhile, Deputy Minister in the Prime Minister's Department Datuk Razali Ibrahim wanted the hike to be reviewed, saying that the increase showed SPAD's indifference to public interest.

This view was echoed by Transport Workers Union (TWU) secretary-general Tan Sri Zainal Rampak who said the fare increase was too high and did not take into account the interest of low-income group, the main users of public transport.

SPAD on Thursday announced that taxi and hire car fares would increase by between 20-67% with immediate effect while express bus fares would go up 22.6% on May 15.

Its chairman Tan Sri Syed Hamid Albar said the fares were streamlined after considering the needs of the operators who were burdened with the rising prices of goods and the interest of the public.

- TMI