theSun | MONDAY MAY 25 2009
speak up!
Public transport measures
fail to reflect reality
IT WAS reported that the proposal
under the Ninth Malaysia Plan to have
three transport hubs to cater for buses
bound for southern, northern and east-
ern states has been cancelled due to
pressure from express bus operators.
Lately, there have been acquiesc-
ing voices from government officials
to consider the de-establishment of
government-funded operators (RapidKL
and RapidPenang) that offer low ceiling
fares and the liberty to let the “true mar-
ket price” of transport services played
by the invisible hands of the private
operators. These passive tones show
that the government, as the trustee of
public mobility, is openly relenting to
calls that seek the full transformation
of the public transport sector to be
exclusively demand-driven.
This highlights the sad reality in Ma-
laysia where the government expects
the private sector to holistically lead
the improvement of public transport
with complete disregard of any sup-
porting infrastructure (in the absence
of exclusive transit lanes, signals,
walkways, terminals, staging areas and
depots).
The fact that the majority of the ur-
ban folk choose private transport over
public transport is a grim reminder that
public transport remains expensive no
matter how low the fares, as the lost
time and hassle in using public trans-
port damage an average commuter’s
productivity and quality of life.
To date, there is no single transit
complex that effectively serves as a
transit point between intra-urban and
inter-urban travel in Kuala Lumpur. As a
representative of public transport users
in Klang Valley, the Association for the
Improvement of Public Transport has
suggested four transit gateway com-
plexes to be set up near the entrances
of four highway corridors (Akleh, Duke,
Maju Expressway and Sprint) for inter-
urban to intra-urban transfers, and two
additional interstate transit gateways
(apart from the Bandar Tasik Selatan
integrated transport terminal) to be set
up along the NSE (next to Sungai Buloh
KTM) and the north section of Duke
(connected to Gombak LRT terminal).
These gateways are connected by
expressways and rail tracks, and will
effectively enhance use of interstate
and inter-urban buses (which do not
have to go through city traffic).
Yet, the public is sought to be en-
gaged only when the decision affecting
them has already been made.
The government cannot abscond
from its responsibility in channelling
its resources to build sufficient support
systems that allow public transport
operators to put their act together
China
spends
big in
Central
Asia
letter
letters@thesundaily.com
pg 15
and effectively serve the public. Public
transport support systems which en-
compass provisions of infrastructure,
enforcement, route and fare rationali-
sation and feedback management must
never be short-changed by overlapping
jurisdictions of government agencies.
Instead of taking charge of public
transport, government agencies have
been quick to delegate the responsibil-
ity to the private sector. Public transport
cannot be demand-driven. Without a
well-coordinated government-funded
support system, operators have no
choice other than to cut corners to
compete with the conveniences of-
fered by private transport.
If we think public transport opera-
tors and users should privately bear all
the costs related to mass transit infra-
structures, systems and operations,
then we should remind ourselves that
our scarce public roads are dispropor-
tionately taken up by private vehicles
which do not incur the full costs it
generates for society: infrastructure,
wear and tear, pollution, congestion,
accidents and collective urban produc-
tivity loss. The government has to take
the lead to secure the interest of the
public to travel conveniently.
Although Kuala Lumpur can no
longer support the widening of roads
or new bypasses, it can afford to use
various advanced mass rapid transit
approaches to facilitate urban mobility.
But then, the government has not been
keen in exploring these approaches
due to the fixed mindset that public
transport thrives in the presence of
competition without governmental
interference, forgetting that private
transport monopolises most of the
government-funded infrastructure
that public transport (namely buses)
relies on.
Allocation of risks and responsi-
bilities between the authorities and the
operators can only be fairly determined
by an independent commission, not
by the Commercial Vehicle Licensing
Board nor the operators.
I sincerely plead with the govern-
ment to be less reactive in introducing
knee-jerk measures as if public trans-
port is meant to be demand-driven, and
be proactive in making public transport
supply-driven through the (yet-to-be-
commissioned) public transport com-
mission.
Muhammad Zulkarnain Hamzah
Shah Alam
The challenge of
tapping India
A BIGGER than
expected win by the
Congress Party and its
allies at the recent gen-
eral election – an out-
come that eliminates
the need for support
from the communists
– boosts expectations
India will now fulfil
its potential to become
an economic power- MakingSens
house.
A resurgent by Tan Siok Choo
India will provide
tremendous opportunities and
some challenges for Malaysia.
Pluses include a bigger market
for exports, greater business op-
portunities for companies like
IJM, Khazanah, Maxis, Petronas,
Scomi and UEM as well as more
investments by Indian companies
in this country.
For policy planners, the critical
task is to avoid competing head-
on with India for markets and
foreign investment while ensur-
ing Malaysia is well positioned to
capitalise on the subcontinent’s
accelerating growth.
Meanwhile, India’s thriving
services sector could provide
useful pointers for Malaysian
leaders planning to switch from
manufacturing as the engine of
growth to the services sector.
Given the need to reduce the
budget deficit, analysts expect
Prime Minister Manmohan Singh
to accelerate the opening up of
India’s economy. Manmohan
may sell US$20 billion (almost
RM$70 billion) of state assets
over the next five years, Rashesh
Shah, chief executive officer of
Edelweiss Capital says.
Accelerated asset sales by
India are likely to attract strong
interest from foreign investors.
For developing countries like
Malaysia, there is concern that
India, together with China, could
pre-empt a hefty proportion of
already limited foreign funds
– now sharply reduced by the
global economic crisis – available
for investment in the region. For-
eign interest is likely
to be strengthened by
expectations that India
is one of a few Asian
economies that will
escape a recession
this year. In its latest
regional economic
outlook, the Interna-
tional Monetary Fund
expects India to post
4.5% growth this year,
the second highest
after China.
With the economies
of US, Japan and the Eurozone
facing bleak prospects and with an
upsurge in American protection-
ism increasingly probable, many
economists suggest Asia should
abandon export-led growth and
opt for a domestic-demand orien-
tation. If this strategy is adopted,
India is well placed to make the
shift. India’s advantages include
a 1.14 billion population with
a median age of 25 – one of the
youngest among large economies
– a middle class numbering 126
million with an annual house-
hold income of two to 10 lakhs
(RM14,811 to RM74,000), plus
home-grown companies like
Tata and Infosys that are global
players.
For Malaysia, the challenge
will be to maximise the benefits
from India’s domestic-led growth
and to minimise the competitive
elements.
Cars are one example. Only
seven per thousand people own
cars in India – an exceedingly
low proportion compared with 18
in Indonesia and 57 in Thailand,
according to the Society of In-
dian Automobile Manufacturers.
Launched recently with a base
price of 123,000 rupees (RM9,100),
the world’s cheapest car, the
Nano, is aimed at Indians who
now aspire to buy motorcycles.
India’s low car ownership and
huge population underscores its
attraction for foreign auto compa-
nies. Not only are General Motors,
Honda, Toyota and Volkswagen
planning to increase their sales in
13
India, joint-ventures like Hyundai
Motor India, Maruti Suzuki and
Ford India are using the subconti-
nent as a hub for exporting small
cars and auto parts to Europe.
News reports indicate Proton
is interested in venturing into
India. The car maker will need
to sharpen its marketing edge
and refine its business strategy to
thrive in India’s highly competi-
tive auto market.
As for the services industry,
India provides an excellent case
study for policy planners. Al-
though India’s economic growth
has been turbo-charged largely by
its services industry – in particu-
lar, software and business process
outsourcing – this has failed to
reduce poverty significantly.
Three out of four Indians live
on less than US$2 a day, according
to the World Bank. On this score,
China – where economic growth
has been boosted by manufactur-
ing – has done much better.
In 2005, 15.9% of China’s popu-
lation lived in extreme poverty
– defined as living on less than
US$1.25 a day – while for India
it was 41.6%. Fifteen years ear-
lier, the positions were reversed:
60.2% of China’s population lived
in extreme poverty compared
with India’s 51.3%.
Furthermore, unemployment
in India remains high. Officially,
India’s unemployment is 7.8% but
a BusinessWeek article estimates it
is 22% . And because nurturing
the IT industry doesn’t require the
building of roads, telephone lines
and airports, India’s infrastructure
remains poor.
India’s experience suggests
economic growth propelled by
the services sector creates oases
of prosperity amid a desert of
poverty.
Opinions expressed in this article
are the personal views of the writer
and should not be attributed to
any organisation she is connected
with. Her email address is schoo@
noordinsopiee.com.