How much longer can bailouts continue? The government is hit by yet another possible bailout. What's next? PKFZ? Ports? More companies and individuals?
Hit by escalating cost of operations, stage bus operators nationwide have asked the Government to take over their businesses and liabilities.
Pan Malaysia Bus Operators Association president Ashfar Ali has sent a memorandum to Land Public Transport Commission (LPTC) chairman Syed Hamid Syed Albar proposing that the Government buy over their assets. (and take over their debts)
The association, which comprises members from 130 bus companies operating more than 3,200 buses, said the fares that they collect can no longer cover rising operational costs.
The stage buses ply about 80% of the routes outside the Klang Valley.
Syed Hamid, in his response, admitted that the issues raised were valid and promised to look at the memorandum before meeting the association for further discussions.
The government must take a comprehensive look at the public transport policy. It must come out with a proper system to ensure that while it does not burden the people, public transport providers are able to operate viably.
In the spirit of 1Malaysia's people first agenda, the government cannot ignore the need to revamp and restore the public transport system to world-class standards. A good public transport is essential to positive socio-economic development.
Otherwise, more bailouts will not help to improve the situation. Even if Syed Hamid or the government agree to the bailout, the final say belonged to the people/tax payers. The government had created a precedent by bailing out groups previously and more will come forward with similar proposal in the future. We should not encourage businessmen to treat the government as an insurance policy whenever their business is not doing well.
More burden on the taxpayers will reach a breaking point. I would like to urge the government to take a serious look at the current public transport system or a lack of it and address the problems immediately.
5 comments:
The gov must allow price increase though is not a popular choice. Operating the bus companies with current rate of fare is not viable.
This is Malaysia !
When a Malay company goes bad they will then approach the government to bail them out. They will blame everything except their incompetence they know from the start that they have the government to bail them out when they fail. As such from day one they care very little on how to run a good business be frugal just behave as though they are very successful businesses. When the day comes for these morons to front up they will blame everything. They get special privileges in everything in other words they sit on their wheelchairs without going through the mills because they know eventually the government will bail them out. This habit will continue forever as long as they don't learn how to run a business in the right way and know at the end of the day they can ask for their wheelchairs and tongkats.
Just keep asking because the country will go bust very soon ! What a crying shame, trying to be a business man when you are not borne to be one.
"Syed Hamid, in his response, admitted that the issues raised were valid ....."
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Of course Syed Hamid, every thing is "valid" when UMNO needs votes....even cow head protestors are valid.
Yup, looks like we're gonna have another, "Satu lagi projek kerajaan Barisan Nasional."
Totally agree with what charleskiwi said.
Just recall back when the Klang valley was serviced by many privately owned firms(among them majority are chinese owned),they were doing well and some even went public(Parkmay).But when govt step in on the context of steamlining the public transport(they forced the owner of Parkmay to sell their shares when that time the co share was trading at around RM8 and cash rich but after a few years the govt took over, the price went down to as low as below RM1.)
Why is that so? The observation was that of bad management and integrity of the top officials.
Frankly, the government should not be in business.
If these people cannot survive on their own merit, they should just close shop. Let others who are more competent and knowledge of the business run them.
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