Corporatisation to boost MARA liner earning, services

Mara Chairman, Tan Sri Annuar Musa, said the move would also improve the quality of the bus services, which were initially set up to serve the rural areas.

"The management of KBM was formerly under a transport division of the agency. It will now come under one of Mara's units, Mara Liner Sdn Bhd.

"I hope Mara Liner will set up a suitable mechanism and have a new business strategy and competitive to offer social services in the rural areas," he said.

Annuar said this at a media briefing after launching the corporatisation of KBM here today.

He said the government subsidy would also be reduced as the corporatisation would help increase revenue which would be better managed by the new management.

The ceremony also witnessed Mara signing strategic partnerships with five Bumiputera automotive companies and Mara Liner signing a memorandum of understanding with MAN Truck & Bus.

Meanwhile, Mara Director-General, Datuk Ibrahim Ahmad, said Mara Liner was expected to record an income of RM80 million for the 2013 financial year, up 330 per cent, compared to before corporatisation.

"Before corporatisation, MLSB earned about RM2.8 million a month and with corporatisation, the target is not difficult to achieve.

"This is because the company is strongly supported by the new system of management and is not tied down by government 'red tape.

"An innovative management system will be implemented and the transportation sector offers vast opportunities to expand," he said.

KBM, a government project under Mara, provides bus services in the rural and new growth areas. Its services had expanded to include Sabah and Sarawak.

It has also taken over the management of serveral Bumiputera-owned bus companies.

On June 1, its management was corporatised under Mara Liner.