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Budget 2025: Van service for school students to be implemented via DRT – MOT

KUALA LUMPUR: The van service to shuttle school students from selected train stations for 50 sen per ride, as announced in Budget 2025, will be implemented through the Demand Responsive Transit (DRT) service.

The Transport Ministry (MOT), in a statement today, said this will serve as an alternative transportation mode for students, aimed at reducing costs and providing convenience for their school commutes.

“Two routes have been identified for the DRT pilot tests, involving the Sri Rampai and Melati LRT stations.

“The initiative aims to reduce the financial burden on parents by introducing cheaper fares. Currently, school van fares are RM90 per month, while the DRT fare is only 50 sen for students and RM1 for regular passengers,” the statement read.

Prime Minister Datuk Seri Anwar Ibrahim, when tabling the Budget 2025 yesterday, announced an allocation of RM750 million for MOT’s public transportation initiative, in line with the government’s goal to reduce the cost of living and improve the quality of public services.

Regarding the procurement of electric buses, MOT said that the first phase, involving 250 buses, will roll out from the fourth quarter of 2025 until the fourth quarter of 2026. The second phase, comprising 645 buses, is scheduled for 2027 to 2028.

“These acquisitions are necessary to replace ageing buses, improve passenger safety and reduce maintenance costs.

“This initiative will expand capacity, reduce headways (the time interval between public vehicles on the same route), provide a more comfortable travel experience for passengers, and support the government’s environmental sustainability goals,” it said.

The ministry also welcomed the decision to continue the My50 Monthly Pass for Prasarana rail and bus services in the Klang Valley and will follow up with the Finance Ministry regarding the funding approved for 2025, following this year’s allocation of RM200 million.

As for the free fare initiative for all Malaysian students at universities, polytechnics, community colleges and matriculation centres nationwide using the BAS.MY service, MOT said it is expected to benefit over 400,000 students at more than 60 institutions.

At the same time, the ministry will identify 100 bus stop locations for construction or upgrades in collaboration with the private sector and government-linked companies.

Meanwhile, MOT expressed its readiness to fully cooperate in realising the Lumut Maritime Industrial City (LuMIC) development project as a regional maritime industrial hub.

“We welcome the proposal to construct and upgrade the Pulau Indah Ring Road and the North Port Klang, Selangor at a cost of RM107 million. These improvements will help streamline the movement of goods and ensure road safety,” the statement added.

MOT also welcomed the allocation of RM6.4 billion in financing from Bank Pembangunan to support various sectors, including transport and logistics, particularly in the maritime industry.

“The proposal to grant investment tax allowances to logistics companies engaged in smart logistics complexes is expected to boost the logistics industry’s capacity by adopting IR 4.0 technologies.

“This tax incentive is crucial to support the growth of the high-tech logistics industry and the government’s aspiration to position Malaysia as a regional logistics hub by 2030,” it said.

MOT is also committed to implementing the MADANI Adopted Village initiative, with Kampung Orang Asli Ngoi-Ngoi in Negeri Sembilan selected for the programme.

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