Five-year RM5 mln annual fund to ease cost pressures on Sarawak stage bus operators

Kong (standing, centre) witnessing the signing of ISBSF Agreement with various stage bus operators on July 7, 2026.
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By DayakDaily Team

KUCHING, July 7: The federal government has allocated RM5 million annually for the next five years under the Interim Stage Bus Support Fund (ISBSF) to assist stage bus operators in Sarawak in coping with rising operational costs and ensuring the continuity of essential public bus services.

Commercial Vehicle Licensing Board (CVLB) Sarawak chairman Michael Kong said the funding would help operators overcome financial pressures caused by increasing maintenance expenses and labour costs while improving the quality, reliability and sustainability of stage bus services throughout the State.

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“CVLB Sarawak has signed the ISBSF agreements with various stage bus operators across Sarawak, marking another important step in supporting the sustainability of our public transportation system,” he said in a statement today.

Kong said stage bus services remained a vital link for communities, especially for those who depended on public transportation for their daily mobility needs.

He added that the ISBSF was introduced not only to ease the financial burden faced by operators but also to encourage improvements in service delivery, particularly in terms of reliability and efficiency.

“One key improvement under the new ISBSF is the emphasis on service reliability. Public feedback has consistently highlighted concerns that our buses do not always operate according to schedule, making it difficult for commuters to depend on public transport.

“Under the new mechanism, operators would be required to achieve at least 80 per cent on-time performance beginning next year,” he said.

Kong highlighted that the fund would become a performance-based support mechanism, ensuring that public funds were channelled towards operators that provided reliable services to commuters.

He said another important component of the programme was the digital transformation of stage bus services, with operators being supported to install Global Positioning System (GPS) tracking systems and Electronic Ticketing Machines (ETM) on their buses.

“These upgrades are important as they will help LPKP Sarawak collect more accurate operational and passenger data, enabling us to plan and improve public transportation services more effectively,” he said.

Kong added that the ISBSF would also provide incentives for operators to gradually replace older buses with newer and safer vehicles, with CVLB Sarawak assisting by covering part of the financing costs.

He said the move would improve service quality and reliability while enhancing safety and comfort for passengers.

The initiative, he said, also reflected the federal government’s recognition of the challenges faced by public transport operators and its commitment towards ensuring sustainable public transportation services nationwide, including in Sarawak.

Among existing measures introduced by the federal government is the diesel subsidy programme, which allows eligible stage bus operators to purchase diesel at the subsidised rate of RM1.88 per litre.

Kong said the subsidy had significantly reduced operating costs and enabled operators to continue providing affordable services despite fluctuations in fuel prices.

“The ISBSF complements these existing support mechanisms and demonstrates the federal government’s continued commitment towards strengthening public transportation throughout the country, including in Sarawak,” he said.

Miri Transport Company, Sungai Merah bus, Rejang Bus, Lanang Bus, Borneo Amalgamated Transport, Teku Road Bus, and Kaput Bus Express were among the stage bus operators present at the signing ceremony. — DayakDaily

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