New fares an economic shock to consumers

PETALING JAYA: The new taxi and express bus fares of up to 40% announced yesterday by the Land Public Transport Commission (SPAD) represents an economic shock to low-income consumers, and should instead have opted for a graduated phase-in for fare increments.
SPAD announced today the new adjusted fares for taxis and hired cars with immediate effect, and fares for express buses effective May 15.
Institut Rakyat fears that the sharp and sudden announcement could burden low-income commuters even further, representing a regulatory failure on the part of the commission.
Its executive director Yin Shao Long said that SPAD was supposed to conduct fare reviews every two years, with focus on small, manageable rate increments of 10%.
“Having failed to conduct a fare review for the last six years, the reaction of SPAD has been to opt for a sudden increase.
“A graduated phase-in of the overdue fare increase would be fairer, rather than making up for six years in one fell swoop. SPAD should have considered this to balance both consumers and business interests,” Yin said in a statement yesterday.
"While it is important to be fair to the taxi drivers and bus operators, it is also crucial to be fair to the consumers who depend on their services," he added.
As it stands, an eight kilometre taxi journey would cost RM10 previously, while the new rates will see consumers paying RM13.10 for the same distance.
“The sharp increase may encourage some commuters to shy away from public transport or even opt for alternative car hire services such as Uber.
“If so, this represents a mission failure for SPAD,” he said.