By Amanda L
KUCHING, Aug 1: The Kuching Urban Transportation System’s (KUTS) first station naming rights agreement has launched a broader commercial strategy encompassing transit-oriented developments (TODs), advertising and tourism initiatives to support the network’s long-term sustainability.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said successful public transport systems around the world no longer rely solely on passenger fares, but generate additional revenue through commercial initiatives that strengthen their financial resilience while enabling continuous improvements in service quality.
“Every ringgit generated through these commercial partnerships strengthens the financial sustainability of the KUTS ecosystem,” he said during the Station Naming Rights Agreement signing ceremony between Sarawak Metro Sdn Bhd and IBRACO Berhad for the SM07 ART station at The NorthBank today.
The agreement makes IBRACO the first company to secure naming rights for a station under KUTS.
Under the agreement, the SM07 ART station has been named The NorthBank IBRACO ART Station, becoming the first station under KUTS to carry a corporate-backed name.
Abang Johari said station naming rights form part of a wider commercial strategy for KUTS, alongside TODs, advertising and tourism.
“Naming rights is number one, number two is TOD, number three is advertising, and number four, we will get tourists to come over to Kuching and spend money,” he said.
He stressed that commercial revenue would supplement, rather than replace government funding, noting that public transport systems around the world rely on subsidies to keep fares affordable.
“The government has to subsidise. No public transport system got no subsidy. The government will support our public transport system because it is meant for the public,” he said.
The Premier said KUTS was a calculated investment despite early criticism over its cost, as the State seeks to transform Greater Kuching into a modern, well-connected and environmentally friendly city.
He said the integrated commercial approach would help ensure KUTS remains financially sustainable while supporting urban growth, improving connectivity and attracting more visitors to the city. — DayakDaily
