Budget 2020: Capex for transport industry ‘too little’, says Lee

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Lee (left) is seen with Chief Minister Datuk Patinggi Abang Johari Tun Openg (right) at the event in Miri. On Lee’s left is Minister in Chief Minister’s Department (Integrity and Ombudsman) Datuk Talib Zulpilip, while chatting with Abang Johari is former deputy chief minister Datuk Patinggi Tan Sri Dr George Chan.

MIRI: The capital expenditure under Budget 2020 for the development of transport industry ‘is too little’, says Minister of Transport Datuk Lee Kim Shin.

In this respect, he opines that there is ‘too much funds for operating purposes’, resulting in the ‘unbalanced ratio’ between development expenditure and operating expenditure.

For Budget 2020, the federal government is allocating RM297 billion, comprising RM241 billion for operating expenditure and RM56 billion for development expenditure.

“The federal budget provides too much funds for operating purposes. For Sarawak, we need more funds for development purposes,” he said when met after the investiture ceremony here yesterday, held in conjunction with Yang di-Pertua Negeri Sarawak Tun Pehin Sri Abdul Taib Mahmud’s 83rd birthday celebration.

It is noted that to improve public transportation and create clean and green cities, the federal government plans to provide up to 500 electric buses of different sizes, costing RM450 million, in 2020 for public transportation in selected town areas in the country.

In this respect, Lee commented: “RM500 million was approved for 450 stage buses. We hope the federal Ministry of Transport (MoT) would give what is due to Sarawak, in that Kuching is one of the selected cities for the stage bus transformation.”

Under the Stage Bus Service Transformation (SBST), the federal government is supposed to provide funds to the service providers – or rather, the bus companies – to transform their bus services.

Sarawak, through Konsortium Bas Bandaraya Kuching Sdn Bhd (KBBK) had revised and requested for 108 electric buses — 30 buses for next year, 42 in 2021, and 31 in 2022, under this programme.

The KBBK has prepared its plan for electric buses and is ever ready to implement it once the fund is provided by the federal government.

The consortium eyes commencement of the plan in the first quarter of next year.

“Therefore, let me reiterate that we need RM302 million to purchase 108 electric buses,” stressed Lee.

Meanwhile, Lee welcomed the budget provision of RM146 million to subsidise bus operators, meant to support last-mile connectivity in rural and urban areas.

Nevertheless, he also called upon the federal ministry to pay up the RM6 million in the year-to-date outstanding Interim Stage Bus Support Fund (ISBSF) payments to Sarawak bus operators.

“It is already nine months overdue, and this has adversely affected the services provided by the Sarawak bus operators.”

Lee said he was informed by Sarawak bus operators that the federal MoT had signed the two-year (2019-2020) ISBSF Agreement with the bus operators in Peninsular Malaysia on July 29 this year, but not with the Sarawak bus operators.

Thus, Lee called for the Sarawak agreement to be signed without delay, and for the RM6-million fund needed by Sarawak bus operators to be made available in the soonest time, in view of the RM146 million announced in Budget 2020.

On the monthly My50 and My100 pass subsidy scheme, Lee opined that this would be more suitable in densely populated areas such as Klang Valley and Penang.

“The best option for the sparsely-populated Sarawak is still the provision of subsidy via the ISBSF, as it would enable bus companies to cover their operation costs irrespective of the passenger load, especially in the rural areas.”

Asked if he was happy with Budget 2020, Lee said the budget seemed to give more prominence to Peninsular Malaysia, without announcing much changes in allocation for Sarawak.