PETALING JAYA: The country’s largest bus operators association has appealed to Putrajaya for help, saying the movement control order (MCO) has badly affected its members.
“Under the Covid-19 MCO, the bus industry is categorised as an essential service. As such, our members have to continue providing bus services to the public,” said Pan Malaysia Bus Operators Association president Mohamad Ashfar Ali.
“However under the MCO, travel is restricted for the general public and there are practically no passengers taking our buses.”
He said this had led to zero income despite continued payments for wages, diesel and maintenance.
Even when the MCO is lifted, Ashfar said the public may refrain from taking public transport, a situation which could last up till a year.
He added that bus operators need assistance to remain afloat and ensure the continuity of services to the public.
He spoke of the immediate and unconditional release of funds under the Interim Stage Bus Support Fund and Stage Bus Service Transformation funds to help ease cash flow problems.
He also said operators need to receive a moratorium on loan repayments which is not applicable to corporate borrowers or loans and hire purchase facilities from credit companies.
“We would like to request that loan and hire purchase repayments be deferred for all bus operators for six months starting from April 1,” he said.
“Our members inform us that credit companies are refusing to heed the government’s call for a six-month moratorium and are insisting on repayments as they say they are not under the preview of Bank Negara.”
Ashfar also urged Putrajaya to give a blanket subsidy amounting to 75% of the monthly wages of bus drivers, most of whom earn more than RM2,000.
Under the wage subsidy programme, companies with 75 workers and below are eligible to receive RM1,200 per month for each worker while companies with 76-200 workers can receive RM800. Companies with more than 200 workers can receive RM600 per month for each worker.
But Ashfar said some operators have more than 76 and 200 staff members which means that the wage subsidies given to these companies cannot cover the monthly wage bill.
“This method is presently being practised in the UK and Singapore,” he added.
Other proposals put forward to the government include exemptions from paying the employers’ portion of the Employees’ Provident Fund, Social Security Organisation and Employment Insurance Scheme, subsidies for resumption of services and waiver of insurance premiums during and post-MCO.
Source : https://www.freemalaysiatoday.com/category/nation/2020/04/22/bus-companies-cry-for-help-from-putrajaya/