Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily on June 28, 2018

KUALA LUMPUR: The workers’ union of Keretapi Tanah Melayu Bhd (KTMB) has urged Transport Minister Anthony Loke Siew Fook to restructure Railway Assets Corp (RAC) and place it under KTMB so the latter can be a more multifaceted business organisation.

By restructuring RAC, KTMB will have additional revenue sources through the existing assets developed by KTMB, and not depend only on its operations and government assistance, its president Abdul Razak Md Hassan said in a statement yesterday. “The new government has to step up by imposing a more drastic policy change that can transform KTMB into a multifaceted business-oriented organisation rather than [one that] just focuses on its operations,” he said.

Abdul Razak said KTMB has failed to transform into a profit-driven business entity following the amendment of the Railways Act 1991, which saw the establishment of RAC.

“The purpose of establishing RAC to supposedly help KTMB had been missed entirely. The union did not see RAC’s ability to assist KTMB other than its role as an agency that manages railway assets. In fact, KTMB had lost its revenue through the assets handed over to RAC ever since the amendment of the Railways Act 1991.

“Today, KTMB is experiencing financial difficulties whereby cash flow has not been managed well and operations-oriented businesses — passenger and cargo — are facing problems with the lack of backup passenger and cargo trains due to the upgrade of the Klang Valley railways.”

Abdul Razak noted the restrictions had interrupted KTMB’s operations and eroded its earnings. Users have also complained about the service being unreliable.

The union also called on the government to cancel the Railway Network Access Agreement (RNAA), which it said will only worsen the overlapping of job scopes between KTMB and RAC.

On the government’s efforts to implement railway land transfers through open tenders instead of direct negotiations, the union said it supports the policy. “The union is also hoping the government will invite representatives from the union to engage in any discussions in forming new policies involving the railway industry, especially [those concerning] KTMB.”

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