No reason to raise transport rates, says Kong

  • Nation
  • Sunday, 18 Jul 2010

KUALA LUMPUR: Those in the transport industry have no reason to raise their rates because of the fuel subsidy cut because the move will result in more projects from which these operators can benefit, Transport Minister Datuk Seri Kong Cho Ha said.

“The industry players should not use the fuel subsidy cut as an excuse to increase their charges,” he said, commenting on the Government’s announcement on Thursday to reduce subsidies for petrol, diesel and liquefied petroleum gas along with that for sugar.

Transport industry players had, on Friday, reacted to the decision by saying they would study the impact of the fuel subsidy cuts before deciding on whether to raise their rates.

Kong said through its gradual reduction in subsidies, the Government could use the extra funds to implement more projects that would benefit the people. The Government will also improve the public transport system.

“When the Government carries out more projects, that means more businesses for the transport industry players as well.

“They will also benefit from it,” he told reporters after witnessing the signing of a memorandum of understanding between the Civil Aviation Department and Italy’s ENAV S.P.A. at the J.W. Marriot here.

Reiterating that the fuel subsidy cuts are “very minimal”, Kong urged transport industry players not to increase their charges.

“It (the cut) should not affect the industry players significantly,” he added.

In his speech, Kong touched on the MoU between the Malaysian and Italian parties, saying both sides have agreed to establish a formal framework for co-operation in air traffic management with specific reference to operational and technological developments.

“Both parties will also encourage and promote short and long-term technical cooperation, training and research and development and other areas of cooperation on air traffic management that will benefit the two countries,” he said.

Kong said he hoped that the safety, capacity and smooth air traffic flow in Malaysian air space would be enhanced through the MoU.

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