Sarawak bus operators seek relief as costs rise 86pc

KUCHING: Sarawak bus operators are calling for greater federal support as rising operating costs continue to squeeze the industry, with approved fares remaining unchanged for 17 years.

The Sarawak Bus Transport Companies Association (SBTCA) said the cost of 11 key operating inputs had risen by an average of 86 per cent between 2009 and 2026, while bus fares remained at rates approved in August 2009.

Its honorary secretary William Chan said Budget 2027 offered limited direct relief to operators despite continued financial pressures, particularly those serving rural and less profitable routes.

“The budget recognises public transport, but mainly in urban Peninsular.

“Bus operators in Sarawak have absorbed an 86 per cent average rise in costs since 2009 with no fare adjustment,” he told Sarawak Tribune.

According to SBTCA’s operating cost records, subsidised diesel prices increased from RM1.43 to RM1.88 per litre, while tyre prices rose by 54 per cent.

Other increases included brake fluid at 130 per cent, air-conditioning gas at 173 per cent and lubricants ranging between 75 and 87 per cent.

Chan said the cost of purchasing a new bus had also more than doubled from RM310,000 in 2009 to approximately RM630,000 today, making fleet replacement increasingly difficult.

“Operators cannot renew ageing fleets on fare income alone. We ask for a bus replacement grant or soft-loan scheme.

“The extended green technology tax incentives (up to 100 per cent Investment Tax Allowance until 2030) only help operators who are profitable enough to claim them,” he said.

He also called for diesel pricing for public transport in Sarawak to remain protected under any future subsidy rationalisation measures.

On the Interim Stage Bus Support Fund (ISBSF), Chan welcomed long-term commitments to supporting stage bus operations but stressed that assistance must be adequate, timely and accessible to Sarawak operators.

He said existing support rates should reflect current operating costs rather than those prevailing when fares were last revised in 2009.

“With fares frozen since 2009 and costs up 86 per cent on average, many rural and low-density routes in Sarawak cannot break even.

“Without adequate support these routes will shrink, and the rural communities that depend on them are hit hardest.

“A review of the support rate and a dedicated allocation for rural routes are necessary,” he stressed.

Meanwhile, Chan said SBTCA welcomed Sarawak’s increased federal allocation of RM16.2 billion under Budget 2027, compared with RM15.1 billion previously.

However, he noted that several public transport initiatives focused on Peninsular, including the My50 and MyKomuter50 passes, railway improvements and feeder bus services.

He hoped the RM270 million allocation to enhance stage bus services in major cities would also cover Kuching, Miri, Sibu and Bintulu.

Chan said continued development of the Pan Borneo Highway and Sarawak-Sabah Link Road would benefit express bus operators through improved road safety and shorter travelling times.

He also urged the federal government to introduce a transparent fare review mechanism, provide financial assistance for mandatory vehicle telematics and continue sponsoring vocational driving licence training to address driver shortages.

“What they need now is clarity on diesel pricing, a sustainable rural route support model, fleet renewal financing, a fare review mechanism, and relief on operating inputs,” he said.

As such, Chan said that SBTCA looked forward to engaging relevant federal and state authorities to ensure Budget 2027 initiatives also benefited bus passengers in Sarawak, particularly those in rural and underserved areas.