Fomca CEO urges govt to intervene with subsidies, fare caps and monitoring mechanism

PETALING JAYA: The Federation of Malaysian Consumer Associations (Fomca) has urged the government to take immediate action to address the increase in school bus fares expected next month.

Its CEO Saravanan Thambirajah called on relevant authorities to take decisive steps, including introducing subsidies for school bus services to ease the burden on B40 families and implementing a cap on fare hikes.

On Jan 8, Gabungan Persatuan Bas Sekolah Malaysia president Mohd Rofik Mohd Yusof announced that school bus fares are expected to increase by RM5 to RM10 per student for the upcoming 2025/2026 academic session in February.

Saravanan said the rates were determined through mutual agreements between parents and operators, without government involvement.

He also proposed tax relief or grants for bus operators to offset operational costs, ensuring fair and affordable transport for students nationwide.

“We understand the challenges faced by school bus operators, including increased operating costs such as fuel, maintenance and wages.

“However, fare hikes should be fair and transparent, striking a balance between the needs of operators and the financial capacity of parents. While the rise in costs is understandable, the timing and impact of the hike on families, especially during periods of economic uncertainty, should be evaluated,” he said.

“Many families are already grappling with financial strain and this hike will add to their burden.”

On Friday, Transport Minister Anthony Loke said the ministry has no authority to prevent the increase in school bus fares as the matter does not fall under its jurisdiction.

Saravanan said Fomca views the ministry’s lack of control over school bus fares as a significant governance gap that must be addressed.

“While school bus service providers operate privately, transport to school is a critical component of ensuring access to education, particularly for (underprivileged) families. It cannot be left entirely to market forces.

“The ministry also cannot fully distance itself from an issue that directly impacts education and family welfare,” he said.

Saravanan urged the ministry to acknowledge its indirect responsibility for ensuring equitable access to school transport as part of its broader mandate to promote affordable and sustainable public transport.

He said failure to address the issue would exacerbate the country’s significant educational challenges, such as the 10,000 students who dropped out of the Sijil Pelajaran Malaysia (SPM) exams this year.

“Although the ministry may not directly control fares, it has the tools and authority to facilitate solutions that benefit all stakeholders, especially (underprivileged) families.

“The ministry should view this as part of its commitment to Sustainable Development Goals – SDG 4 (Quality Education) and SDG 10 (Reduced Inequalities) – and work towards long-term systemic solutions,” he added.

Saravanan also advocated greater transparency in determining school bus fares.

“Operators should clearly communicate cost breakdowns and reasons for increases to parents to avoid misunderstandings or disputes,” he said.

He called for a monitoring mechanism to ensure fare hikes are justified, noting that the rising cost of school transport disproportionately affects students from lower-income households and could worsen dropout rates.

“Parents should request clear, itemised justifications for fare increases from bus operators and compare rates among available options. If parents feel the hike is excessive, they can report the matter to relevant authorities such as the Land Public Transport Agency,”
he said.

Saravanan added that existing guidelines under the agency require school bus operators to register and adhere to fair practices.

However, he said enforcement of these regulations must be strengthened to prevent exploitation during fare negotiations and to ensure compliance.