School bus fares to rise due to GST, says federation

School bus operators may hike their fares next year thanks to cost increases caused by the goods and services tax (GST). – The Malaysian Insider file pic, December 28, 2015.

School bus operators are looking to hike fares next year due to cost increases caused by the goods and services tax (GST), said Federation of Malaysian School Bus Operators Associations president Amali Munif Rahmat.

The New Straits Times today reported Amali as saying that prices would be set by individual operators or companies and may differ from one another.

"The operators need to discuss and negotiate with the students' parents.

"School bus fares differ, just like your telecommunications packages. If you want bigger and better services, you have to pay more," he told the English daily.

The president of the federation, which covers 35 bus associations, said since January this year, school bus fees were no longer controlled by The Land Public Transport Commission (SPAD).

Aside from operational costs, other factors influencing the hike include distance of the journey from home to school and traffic conditions which could prevent bus operators from making shortcuts.

Amali said the average bus fare was currently RM100 per month and might increase with added facilities such as air conditioning.

Amali also told the daily that there was a shortage of licensed school buses after some 3,000 buses ceased operations.

He estimated only one in five school bus operators were licensed, mainly due to the discontinuation of buses older than 30 years.

He said operators resorted to carrying on illegally as they could not afford to purchase new vehicles.

Since 2010, he said there were only 18,000 licensed school buses operating nationwide, half of which were charted buses servicing universities and colleges.

- TMI