fare revision media release 19032015 - updated

MENERAJUI TRANSFORMASI PENGANGKUTAN AWAM DARAT

SURUHANJAYA PENGANGKUTAN AWAM DARAT LAND PUBLIC TRANSPORT COMMISSION

IBU PEJABAT Block D, Platinum Sentral, Jalan Stesen Sentral 2, Kuala Lumpur Sentral, 50470 KUALA LUMPUR, MALAYSIA

Tel : +603 - 2726 7000 Faks : +603 - 2726 7100 Laman Web: www.spad.gov.my

Media Release:

New adjusted fares for taxi with immediate effect,

fares for express bus effective 15th May 2015

SPAD strikes a fair balance between welfare of passengers and economic

viability for drivers and operators.

First express bus and taxi fare adjustment in six years, last adjustment in

2009.

Comprehensive fare review aligns fares to actual operating costs.

New fares are applicable for taxis and express bus services in Peninsular

Malaysia only.

SPAD will continue to accelerate enforcement and drive service

improvements for both transport modes.

Kuala Lumpur, 19th March 2015: The Land Public Transport Commission (SPAD)

announced fare adjustments for taxi and express bus services, to be introduced in

two stages.

Fares for taxi rides will be effective immediately, while adjusted fares for express

bus will be effective 15th May 2015. Senior citizens, the disabled and children

below 12 years old will continue to enjoy a 25 % discount on express bus fares.

This is Malaysias first express bus and taxi fare review in six years; the last was

made in 2009. In comparison, Singapore, London and Sydney review their public

transport fares annually.

The long overdue review took into account public acceptability, as well as the

increase in various cost components. To date, the total operating cost for taxis and

buses has grown by approximately 33%, with NGV alone increasing by 11.3%. In

addition, cumulative inflation, depreciation and increase in wages need to be

taken into consideration. The NGV pump price will be further revised from

RM0.68/le to RM1.05/le, effective six months after the taxi fare revision.





Since 2009, there has been a marked improvement in accessibility and comfort for

express bus passengers, with the opening of the Integrated Transport Terminal

Bandar Tasik Selatan, refurbishment of Pudu Sentral and the new Terminal

Amanjaya, Ipoh.

For taxi services, SPAD has introduced TEKS1M with new policies to optimise

passenger safety, comfort and convenience, with specifications on minimum

headroom and legroom, vehicle age limit and interior conditions of the car. To

date, there are 900 TEKS1M operating in Klang Valley, Johor Bahru and Penang.

Details of the new fares are attached in the Appendix.

SPAD also announced that after due consideration and review, the Commission has

approved requests by KTM Berhad (operator of KTM Komuter, Electric Train Service

(ETS) and KTM Intercity), and Prasarana (LRT and Monorail), to carry out a fare

review exercise, details of which will be announced at a date to be advised by the

respective operators.

In approving the fare adjustment, the Commission has also tasked KTMB and

Prasarana to look into enhanced concessions for daily commuters who opt for

cashless cards and for weekly and monthly concession passes, while maintaining

the 50% discount for senior citizens, the disabled and students.

This will be the first ever approved fare review since commencing operations for

LRT Ampang Line (19 years), LRT Kelana Jaya Line (17 years) and Monorail (12

years). KTM Komuters last fare adjustment was 12 years ago, while KTM

Intercitys basic fares have not changed for over 25 years.

At the media briefing, SPAD Chairman, Tan Sri Dr Syed Hamid Albar said the fare

adjustment is necessary to ensure the commercial viability of the taxi and express

bus industry.





The revision which aims to align the fares to actual operating costs, also strikes a

fair balance between the welfare of passengers and the drivers as well as the

operators.

The current fares are not sufficient: it is not enough to cover operating costs,

cost of living, current and new investments for service improvements. Express and

taxi drivers also need to earn a living to cope with the rising cost. At the same

time, we also want to ensure that the rakyat is not unduly burdened with an unjust

fare increment.

Syed Hamid also said the taxi fare adjustment exercise was done in consultation

with various stakeholders including over 35 taxi operators (main industry players

that have above 500 fleets), some 150 driver associations, more than 55

consumers, students, physically challenged and tourism groups, as well as the

members of the public.

SPAD Chief Executive Officer, Mohd Nur Ismal Kamal added that SPAD will continue

to accelerate enforcement and service improvements to benefit travellers.

With the fare review, it is only fair that the travelling public enjoy better services

from express bus and taxi operators. We have two main focus areas. For express

bus passengers, its safer bus services. The SPAD ICOP Safety guidelines had been

made compulsory to all bus operators since August 2013. All express buses are now

also equipped with fully-functioning GPS. SPAD ICOP Safety guidelines will soon be

made mandatory for operators to actually monitor drivers performance. SPAD will

step up enforcement efforts to ensure drivers abide with the regulations.

For taxis, it is about safety and ensuring that the drivers use the meter. To ensure

this, we will continue our enforcement crackdown on errant drivers. We will come

down hard against errant drivers who refuse to use the meter, or who decline to go

to the desired destination of passengers. In addition, to empower passengers to

take control over the selection of their taxi drivers, and rate their attitude and

behaviour, SPAD has developed an app called MeterOn for Android and iOS

platforms, he said.





Scheduled to be launched on Wednesday, 25 March, the app is equipped with five

features; driver verification, journey tracker, driver rating, SOS alert and quick

report. It enables commuters to rate the drivers, lodge a report immediately with

SPAD, and keeps a record of the passengers taxi rides.

MeterOn covers over 50,000 licensed taxis throughout Peninsular Malaysia, and is

one of the many new service enhancements that we aim to introduce to rate

drivers and operators, and take necessary steps to weed out poor service, he

added.

The taxi drivers have been informed to get their metres calibrated immediately

through meter manufacturers and suppliers. They may also contact

designated SPAD offices for this.

Appendix - Details of the new fares

Taxi services

1. The taxi fare review initiative covers a comprehensive list of cost items

required to operate a taxi.

2. These are grouped into five key cost components - vehicle and equipment,

fuel, maintenance, overhead and labour.

3. New fares are only applicable for budget taxis, TEKS1M, and hired cars in

Klang Valley, Johor Bahru and Penang.

4. No fare revision for airport and executive taxis.

5. Only taxis drivers who have calibrated their taxi meters at PUSPAKOM are

allowed to implement the new fares. Until then, drivers must charge the old

fees.

6. Klang Valley and Johor Bahru:

For a 5km taxi trip, travellers can expect to pay between RM1.50 and

RM3.50 more (see table, excluding surcharges).

For a 10km trip, the journey is expected to cost between RM3.50 and

RM6.70 more (see table, excluding surcharges).

7. Due to higher operating costs in Penang, the fare revision is slightly higher

compared to Klang Valley and Johor Bahru.

For a 5km taxi trip, travellers can expect to pay between RM2.50 and

RM3.50 more.





For a 10km trip, the journey is expected to cost RM5.70 to RM8.00

more.

Taxi Services

Distance (km)

Current Fare (RM)

New Fare (RM)

Difference (RM)

Budget (KV & JB)

5 6.50 8.00 + 1.50

10 10.80 14.30 + 3.50

Budget (Penang)

5 7.50 10.00 + 2.50

10 11.80 17.50 + 5.70

Hired Car 5 7.00 8.25 + 1.25

10 12.00 14.50 + 2.50

TEKS1M (KV & JB)

5 6.50 10.00 +3.50

10 10.80 17.50 +6.70

TEKS1M

(Penang)

5 7.50 11.00 +3.50

10 11.80 19.80 +8.00

8. Advantages of fare revision

Encourages short distance trips by offering the driver a minimum

return per journey.

Covers the total vehicle operating costs and cost of labour for the

provision of the journey.

Encourages passenger pickups during peak hours, where drivers are

compensated for opportunity cost of travelling in congested traffic.

Minimise errant taxi drivers and increase service level for passengers.

9. Ensuring the Meter is on

The MeterOn application, to be launched on March 25, aims to

empower passengers to take control over the selection of their taxi

drivers, and rate their attitude and behaviour.

Equipped with five features; driver verification, journey tracker,

driver rating, SOS alert and quick report, the app enables commuters

to rate the drivers, lodge a report immediately with SPAD, and keeps

a record of the passengers taxi rides.

MeterOn covers over 60,000 licensed taxis throughout Peninsular

Malaysia.





Available in English & BM, the app is available for download on

Android stores, and will soon be available on IOS.

Express Bus Services 1. The fare calculation is based on operating cost per km and bus capacity.

2. The operating cost is RM2.29/km. This is based on the annual operating cost

percentage as below:

Annual Operating Cost (inclusive GST)

% of Total Operating Cost

Depreciation 13

Interest 3

Wages 14

Overhead 12

Insurance 7

Maintenance 16

Tyre 2

Fuel 33

Total 100

3. Passengers will pay 2.1 sen more per km.

Express Bus Current fare

New Fare Difference

Express Bus (Fare per km)

9.3 sen/km 11.4 sen/km

+2.1 sen/km

Journey from Kuala Lumpur to:

Kangar RM50.10 RM61.10 +RM11.00

Kota Baru RM44.20 RM53.80 +RM9.60

Alor Setar RM44.00 RM53.70 +RM9.70

Kuala Trengganu RM44.00 RM53.70 +RM9.70

Pulau Pinang RM38.50 RM47.00 +RM8.50

Johor Bahru RM35.00 RM42.80 +RM7.70

Kuantan RM24.10 RM29.40 +RM5.30

Ipoh RM20.60 RM25.30 +RM4.60





4. Advantages of fare revision

Enables operators to enhance services provided and comply with the

requirements set by SPAD.

a. Safety Better fleet management, e.g. maintenance

Better driver management, e.g. speed monitoring

Better journey risk management

b. Comfort Less breakdown

Cleaner buses

Operators hotline

c. Reliability On time departure

5. Key improvements already in place

SPAD ICOP Safety - made compulsory to all bus operators since

August 2013.

Below are the requirements under the SPAD ICOP Safety:

a. Fleet management - proper maintenance and better safety

aspect, GPS tracking and speed monitoring

b. Driver management - driver screening and ensuring fit to drive

c. Journey management - bus and driver checklist before

departure

d. Record management - for the purpose of safety audit

Training on SPAD ICOP Safety for Bus Operators has already begun

since December 2012 and will proceed to ensure the attendance and

participation of all operators.

Global Positioning System (GPS) All express bus operators are

required to comply with the speed limit set via GPS. All express buses

must be equipped with fully-functioning GPS that records the journey

data. Operators are required to provide mobile phones and hands-free

tools to the drivers so that they can be contacted at any time,

ensuring the bus is monitored and comply with the speed limit.

Operators are also required to retain and submit the GPS data and

incident log to SPAD.

-End-

Further media enquiries can be directed to [email protected]

fare revision media release 19032015 - updated

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