Bus firms: We're victims of 'backdoor nationalisation'

The Pan Malaysian Bus Operators Association (PMBOA) claimed its members are systematically being squeezed out of the public transport sector by economic-policy strong-arm tactics and favouritism of government-linked industry players, in a bid to nationalise the once vibrant private industry using “backdoor” means.

“The dysfunctional stage bus industry and affected public transport system are the inevitable outcome of years of misguided forced amalgamation exercises and poorly-executed transport policies, that have insidiously undermined a once vibrant private sector stage bus industry,” said its president, Mohamad Ashfar Ali, in a statement.

PMBOA noted hurdles such as:

• Uneven playing field against favoured state-owned and government-linked companies (GLCs) such as Prasarana/Rapid and Mara;

• Hotchpotch transport policies that create privileges for special interests that hurt productivity and reduce efficiency;

• The exclusion of private sector bus operators from the Draft National Land Public Transport Master Plan;

• Outstanding issues and concerns remain unresolved for years despite repeatedly being highlighted.

“Private sector operators have lost economic freedom due to a lack of a level playing field, the encroachment of its corridor from predatory public backed stage bus operators, and the arbitrary operational rules and regulations,” alleged Mohamad further.

The association wants private sector stage bus operators who do not or cannot continue to operate economically in the currently restrictive environment to be given the right to exit the stage bus industry. 

‘Malacca formula’ recommended

However, fair compensation must be paid by the government, recommending the ‘Malacca formula’ adopted by the Malacca state government when it recently acquired all private stage bus operations based on the market valuation of operational buses, retrenchment compensation and a lump sum payment. 

“Since the intention of the government is abundantly clear that Rapid is to nationalise the stage bus industry, then it is only fair to compensate the private sector stage bus operators who chose to or are forced to exit. 

“Failure to compensate private sector stage bus operators is tantamount to backdoor nationalisation without compensation, which is another by-word for outright expropriation,” said Mohamad in the statement.

For private players who chose to remain in service, PMBOA advocated a level playing field via a restoration of the corridor system so that each well-demarcated corridor is served solely/jointly by Rapid and/or the private sector operators.

“There must be no favouritism in the allocation of corridors and all players must be genuine operators; no rent-seekers who operate on the public system are to be allowed.”
 
He said that PMBOA members have been deciding on whether to continue in the business on a level playing field or to exit in an equitable and dignified manner, but stopped short of sending in a list of those in favour of an exodus as it may be seen as tantamount to a boycott of the transport industry against the government.