KUALA LUMPUR: Johor-based bus company HI Mobility Bhd
does not view Prasarana Malaysia Bhd’s ongoing fleet renewal and electrification efforts as competition because both companies have different mandates.
HI Mobility chief executive officer Lim Chern Chuen said the company plays a complementary role to government-linked transport operators like Prasarana, rather than competing with them directly.
“As a government-linked company (GLC), Prasarana's mandate is very different from that of a private company. As a private entity, our onus is on our shareholders. Hence, we can play a role in reducing costs and be a bit more entrepreneurial in doing things.
“In contrast, a GLC’s onus is on the people and it is really about expanding network coverage and improving public transportation as a whole. We see ourselves playing a complementary role to perhaps give more bang for their buck. As a private entity, it is about the bottom line by doing things a bit more efficiently,” he said in a press conference yesterday following the company’s listing.
Earlier this week, the government announced that some RM1.9bil will be allocated to Prasarana to purchase 1,660 new diesel and electric buses in phases over three years.
Out of that sum, 310 will be diesel-engine units, and will be the last batch to use such type of engine, while the rest will be electric buses.
HI Mobility raised RM115.9mil from the public issue of 95 million new shares. The company made its debut on the Main Market of Bursa Malaysia yesterday, opening at RM1.27 per share or five sen higher than its initial public offering (IPO) price of RM1.22 per share.
The stock hit a high of RM1.33 and low of RM1.20 in intraday trade and closed its maiden trading day at RM1.33.
RM70mil of the proceeds raised are earmarked for bus fleet expansion and electrification.
Another RM17.9mil will be set aside as working capital and RM15mil will go towards expansion of EV charging infrastructure. Further, RM5mil is allocated for technological enhancement while the remainder RM8mil will be used to defray estimated listing expenses.
Lim said the group is seeing robust demand for both local as well as cross-border bus services in Johor. He anticipates the company’s fleet demand in the state to increase by 20% to 30% in the short term.
HI Mobility’s present addressable markets are Johor, Melaka, the Klang Valley and Singapore.
“We are looking at other parts of Malaysia, including both Peninsular and East Malaysia. First and foremost, we will look at where demand is currently and in the short term it is in the areas that we currently operate in,” Lim said.
HI Mobility has two revenue streams- from ticket sales to the public and contracted and other services from government bodies and corporations.
As part of its bus fleet expansion plans, HI Mobility is looking to replace ageing buses to meet the fleet age requirements depending on contracts. As of Feb 7, 2025, the group operates 630 internal combustion engine (ICE) buses and 53 electric buses.
The group holds six subsisting contracts with government bodies for the provision of intracity bus services in Johor, Melaka and the Klang Valley, as well as 12 subsisting agreements for the provision of chartered bus services.
Revenue from the general public made up for 64.2% of its total revenue for the financial year ended Jan 31, 2024 (FY24), while government bodies accounted for 27.7% and corporations made up the remaining 8.1%.
Lim said from looking at the total cost of operation, inclusive of the initial purchase and the overall operations, electric buses are still slightly more expensive compared with ICE buses that have diesel subsidies.
“Without diesel subsidies, we believe electric buses would reach cost parity or even be slightly cheaper. I think our prices are unfortunately distorted, with the real cost not reflected in the diesel prices due to the subsidies.
“However, as the government rationalises diesel subsidies, we think there will be a bit more push towards electric buses. As new government contracts begin to recognise the hidden costs, increasingly there will be a shift towards electric buses. We are hopeful of that,” he said.
Lim said HI Mobility has been making efforts to reduce the total cost of ownership for electric buses.
“This includes developing our capabilities to do energy management more efficiently, further optimise fleet management, and improving crew scheduling,” he said.
HI Mobility’s principal activity is investment holding while its wholly-owned subsidiary, Handal Indah, is principally involved in the provision of bus transportation services.
The company operates within the mass transit sector and is principally involved in providing cross-border and local bus services.
HI Mobility is the sole Malaysian bus operator providing vital Johor Bahru-Singapore cross-border bus services, connecting the two cities through one of the busiest land border crossings in the world.
