Monday, January 31, 2011

CAN SPAD DELIVER

The much-awaited Land Public Transport Commission (SPAD) is now a reality.

Although it was supposed to be given its full powers by September last year, that deadline has been pushed to now, at the earliest. Reason: one necessary amendment to existing laws did not get passed in time for reasons beyond the control of SPAD.

This is a worrying development. So while SPAD exists in form, it still doesn’t have the teeth to make the positive changes to the sorry state of the country’s public transport system.

There is a lot at stake because SPAD is an idea whose time has come. It parks into one “central garage” the current illogical way that public transport is managed and administered in Malaysia with the Commercial Vehicles Licensing Board at one end, the Road Transport Department at the other, while bodies like the Tourism Ministry, which issues licences for tourist buses, still having a piece of the pie.


SPAD is tasked with revamping the entire public transport system and given the mandate to take over all licence-issuing authorities, reorganise the bus network in the Klang Valley, integrate smart ticketing and monitor the overall standard performance of all public transport services, to name a few functions.

Perhaps this is why speculation is rife that SPAD’s recent hiccup (of not having the sufficient legislative backing) is coming from entrenched parties who have learned to somehow profit from the mayhem of the country’s public transport “mis-administration”.

While this theory is unsubstantiated (it could be only a legal technicality that has prevented SPAD from getting all its powers), certainly SPAD’s role could have an impact on the current status quo of the public transport sector.

For one, SPAD would seek to bring about efficiencies in the running of public transport. This could work against the interests of the entrenched players who exist more so because of the licence or monopoly they have rather than for being efficient in what they do.

At the same time, SPAD is facing expectation problems from the public, simply because there is so much pent-up demand for better public transport which went unheeded by an unresponsive, disjointed system which is now being re-directed (with hope) at SPAD.

In fact, public complaints to SPAD show many are hopeful that SPAD will be able to “right the wrongs” of Malaysia’s public transport system.

For serious commercial transport players, SPAD offers hope that they too have a significant role in the country’s public transport, instead of the usual suspects.

SPAD also gives hope to the “small players” in the public transport system, such as taxi drivers, who have often complained that they are subjected to unfair treatment by licence holders.

No doubt, SPAD is a step in the right direction, with regard to regulation and planning and management of public transport in Malaysia. It was earlier said that SPAD’s biggest challenge is being able to perform its duties without fear or favour, especially in enforcing its findings and plans on the myriad of other stakeholders in the public transport system in Malaysia.

Now it seems it has an even bigger challenge, that of being given its full legislative powers to get started. So can SPAD deliver ??

Saturday, January 29, 2011

ANOTHER REGULATORY BODY ??

AirAsia Bhd group chief executive officer Datuk Seri Tony Fenandes said that it is time to set up an independent regulatory body to guide the airline industry’s development, said AirAsia Bhd group chief executive officer Datuk Seri Tony Fernandes.

When he said that a body akin to the Malaysia Communications and Multimedia Commission (MCMC) was needed to help the airline industry grow one wonders what he really meant by that. Is the Ministry of Transport not doing enough ?

“An independent regulator is needed to decide on what is best for the Malaysian airline industry,” Fernandes said this when contacted in Bhutan. What is important here is not what he said, rather where is he saying that. Bhutan...then we can assume that Air Asia is flying there?

So, get ready guys, a new destination is up for grabs.

He said the body should also decide on standards for best practices in the industry to ensure that Malaysia remained competitive as a hub for the region.

Fernandes added that the regulator should comprise aviation experts and captains of the tourism and banking industries.

On the new KLIA2 to be completed in October 2012, Fernandes said AirAsia would move in only when the terminal is deemed “operationally safe.”A little bit "sombong" here.

He also urged Malaysia Airports Berhad (MAB) to maintain aiport taxes for low-cost carriers at RM6 and RM25 for domestic and international passengers respectively.

Transport Minister Datuk Seri Kong Cho Ha, at a press conference earlier, said the present LCCT was running at over-capacity, having handled 15.3 million passengers last year.

“They (low-cost carriers) have to move. The current LCCT was only a temporary LCCT. We also need it as a cargo terminal. KLIA2 will be a much nicer terminal than the current LCCT,” Kong said.

Friday, January 28, 2011

TOP DUTY FREE DESTINATION

In an effort to position Malaysia as a premier duty free shopping destination, the Malaysian Government recently announced the waiver of duty on roughly 400 imported goods beginning in January 2011. The tax will be waived to attract a wider range of luxury brands to invest in Malaysia. The move also facilitates competitive pricing of imported merchandise, giving Malaysian retailers a competitive edge over retailers in other countries.

Malaysia's introduction into duty free shopping began in 1987 when the island of Langkawi was established as the first duty free zone. Since then, the islands of Tioman and Labuan, and numerous other towns have followed suit. "Duty Free Zones" offer items that are exempted from import duties but are available only in designated shopping zones around Malaysia.

As shopping marks a major component of tourism revenue, focus is being placed on three main areas. The first is the implementation of tax exemptions on a wider range of goods. Next is the promotion of the Bukit Bintang/KLCC shopping district as the premier shopping hub, and the development of three new premium outlets.

Although the tax exemptions currently apply to only selected merchandise, it certainly adds appeal to Malaysia's yearly sale carnivals: Malaysia Grand Prix Sale, Malaysia Mega Sale Carnival, and Malaysia Year End Sale. The carnivals increased tourist arrivals to Malaysia and set new shopping trends amongst the locals.

The success of these sale campaigns is evident in the growing number of tourist arrivals and tourism revenue each year. In 2009, shopping amounted to 28.3% of the total tourist receipts of RM53.4 billion. The waiver of tax on a wider range of goods may become a key reason for visitors to vacation in Malaysia.

Thursday, January 27, 2011

LOWER AIRFARES WILL ENCOURAGE DOMESTIC TOURISM

Malaysians prefer to holiday overseas as they get better bargains, compared to visiting their own country, Tourism, Culture and Environment Minister Datuk Masidi Manjun called on Firefly, a subsidiary of Malaysia Airlines (MAS), to have a built-in mechanism offering lower airfares as an effort to encourage domestic tourism.

“Holidaying overseas sounds much better to Malaysians, but it affects domestic tourism. There should be a balance for us when traveling, because holidaying within our country will control the outside flow of the Ringgit.

“For one Malaysian to holiday abroad, we lose one local tourist in the country,” he said.

Masidi gave an example of the promotional fare of RM99 to London while to travel to Sandakan , one will have to fork out about RM400.

Firefly managing director Datuk Eddy Leong, when asked to comment on the matter, said: “I think prices depend on supply and demand. If the supply is more, then players tend to do anything to get passengers. However, we want to continue to be committed to our tagline as a community airline.”

Masidi also proposed to Firefly and other airlines, to consider conveying conservation message to their passengers to protect nature.

“This is also in line with our tagline, ‘less is more’, meaning the less we disturb our pristine forest and sea, the more people will come to visit Sabah ,” he said.

Sunday, January 23, 2011

ERL EXPRESS FOR SENIOR CITIZENS

Express Rail Link (ERL) will be offering two packages for families and friends travelling to KLIA, in conjunction with the Chinese New Year, which falls on Feb 3 and 4.

Its Chief Executive Officer Noormah Mohd Noor said both packages were available for online purchases.

The family package is priced at RM75 one-way for two adults and two children (children 2-12 years old), a 25 percent discount from the normal total fare.

She said, for those who travel in a group of three or more can enjoy huge savings through the group savers fare of RM25 per person one-way, compared with the standard single fare of RM35.

"The Chinese New Year marks the importance of family ties and prosperity, we wish to share this celebration with our customers, partners and families and together we invite happiness, hope and abundance for the New Year.

"We offered our super-value fares on KLIA Express for the first time during the year-end holiday period last year. The response was overwhelming and we have decided to offer the exclusive online fares to our loyal as well as new customers again, it is a great way to usher in the Year of the Rabbit," she said in a statement here.

Noormah said, customers can purchase tickets online from Jan 14, for travel from Jan 28 to Feb 6 and e-tickets issued in PDF format are valid for use on the selected travel date only.

CNY marks the importance of family ties and prosperity,this is great for the ERL opetator. But what about the senior citizens who also for the moment pays RM25 but can ride on ERL Transit only. It is about time that on this fare senior citizen should be allowed to take the Express as well.

For more information on both packages, visit www.KLIAekspres.com .