KUALA LUMPUR – The selection of companies involved in the trials for Selangor’s bus-on-demand initiative was conducted through a request-for-proposal process, not direct negotiations as some parties have claimed.
Selangor Investment, Trade and Mobility executive councillor Ng Sze Han said this in order to clarify misunderstandings on the involvement of the companies in the proof-of-concept period.
“Contrary to some beliefs, Asia Mobiliti is not the sole company involved in this project. The proof of concept actually includes two companies: Asia Mobiliti and BadanBas Coach Sdn Bhd,” he said in a statement today.
“The decision to involve only these two companies was based on the fact that they were the only ones licensed by the Land Public Transport Agency (Apad) to participate in the proof of concept.”
He said Apad had set strict requirements for participation, including owning a fleet of minibuses or vans, having vehicles no older than 10 years, and employing licensed drivers free from any blacklist by the Road Transport Department or police. Only companies meeting these criteria are licensed by Apad.
Ng said recently, Kumpool Sdn Bhd had proposed to join the proof of concept after receiving Apad’s approval. This proposal is currently under evaluation for potential inclusion in the next phase.
The state government’s committee, he said, decided to involve both companies equally in the proof of concept to prevent any single company from monopolising the trial process. This approach also allows Selangor residents to evaluate the effectiveness, comfort and efficiency of the services provided.
“The proof-of-concept licences issued by Apad to these companies are valid only until August 31, 2024, not for decades, and are not automatically renewable.”
He added that the proof-of-concept period was from November 2023 to July 2024, ending before the licences expire.
Ng said since the initiative began, 40,674 Selangor residents had used the bus-on-demand service across eight routes. Asia Mobiliti operates in Ampang, Hulu Kelang, Puchong and UPM-Serdang, while BadanBas operates in Subang Jaya, Petaling Jaya North, Petaling Jaya South and Sg Buloh.
Each company received equal funding of RM2.1 million to subsidise users during the proof of concept. This subsidy is disbursed in three phases to prevent the misuse of state funds. The estimated cost per user per trip is RM5, with the state covering RM3 to encourage public transport usage, leaving users to pay only RM2 per trip.
The involvement of Asia Mobiliti in this project has raised some eyebrows due to its co-founder and chief executive, Ramachandran Muniandy, being the husband of Youth and Sports Minister Hannah Yeoh.
However, Puchong MP Yeo Bee Yin clarified that Asia Mobiliti was only asked to prove its capabilities in the Selangor Demand Responsive Transit (DRT) project and had not been awarded a contract.
Yeo also noted that the DRT was seen as a more cost-effective public transport solution compared to the free bus service introduced in 2013, which has experienced low ridership.
Addressing concerns about perceived nepotism, Ng previously clarified that the committee’s decision was based on the company’s merits and Apad’s initial screening. – May 29, 2024