KUALA LUMPUR: Prasarana Integrated Development Sdn Bhd, a subsidiary of Prasarana Malaysia Bhd which focuses on growing the non-fare business, is projecting a robust growth of 30 per cent in revenue over the next five years.
Its chief executive officer Faizah Khairuddin said the surge will be primarily fueled by its retail, advertising, technology, transit-oriented development (TOD) units as it endeavors to diversify revenue sources beyond public transportation ticket sales for the group.
Faizah said the non-ticket business currently contributes approximately 10 percent to Prasarana Integrated's revenue.
"We believe these four business units will anticipate to act as a catalyst for future projects and sales," Faizah told the New Straits Times.
Prasarana Integrated was established in 2011, with its main objective to increase non-fare revenue of Prasarana Group via commercialisation of existing 90 stations with 104,690 sq.ft. net lettable area, future rail stations and bus assets driven by four business units.
She said Prasarana Integrated's advertising arm is an emerging player in the "out-of home" media or outdoor media services in the Klang Valley.
Various creative offerings and packages will be made available to attract advertisers to explore bus and rail advertising, including the activation of the Station Naming Rights program that enables established brands in Malaysia to advertise and significantly promote their brand in the public transport sector, said Faizah.
The principal activities of its advertising arm is to market and manage media and production services for out-of-home advertising by commercialising the rail and bus assets of Prasarana Group.
As of June 2023, this advertising segment contributes significantly, accounting for 50 per cent of the group's revenue.
Prasarana Integrated's presence is also felt in the east coast and northern peninsular of Malaysia via Rapid Bus where Rapid Penang and Rapid Kuantan operate.
On its retail segment, Faizah said Prasarana Integrated has plans for retail spaces that will allow passengers to enjoy more comprehensive services.
"Among the proposed plans is in-train sales, where passengers can purchase basic necessities, food products, and raw materials online and collect them at the final passenger station.
"This proposal allows passengers to buy essentials online and pick them up at the station while on their way home. It's similar to in-flight sales, saving time and facilitating Prasarana passengers," she added.
The retail segment of Prasarana Integrated business unit has been performing well and currently accounts for 21 per cent of the group's revenue.
As part of its technology initiative, Prasarana will be transforming the LRT stations as a lifestyle hub to develop Imbi Monorail station on a thematic approach to improve the customer experience going through the underpass at the Imbi station that connects both Plaza Berjaya and Berjaya Times Square.
"The station theming initiative which will be launched in October 2023 is a collaboration between Prasarana and Berjaya Times Square Sdn Bhd," she added.
Its technology segment currently contributes 23 per cent to the group revenue.
Among their ongoing projects, Prasarana Integrated is actively working on seven TOD projects in the property segment, including retail spaces, which are being prepared and will become main focal points for the local community.
TOD is defined as a high-density mixed-use development built near a transit station preferably within a 400m radius, a concept which is popular in Japan and Hong Kong.
One of the completed projects for the first phase is Perla Ara Damansara, Prasarana's first TOD, consisting of 648 residential units.
"Strategically located next to the Ara Damansara LRT station, it offers convenience to residents as it is connected via a link bridge to the station. This unique product composition of open market (468 units) and affordable housing (180 units) concepts within the same building allows residents to enjoy the same facilities, resulting in 100 per cent of units being sold for both open market and affordable housing segments," she added.
Prasarana's TOD is a collaboration with other leading property developers, where Prasarana provides the land, and the property development is carried out by the developers.
Its TOD Project Alpha Lab which was held between February to May 2022 had generated 18 new ideas to drive a total incremental non-fare revenue of more than RM100 million up to 2027.
As of June 2023, the TOD segment contributed 5 per cent to the group revenue.
"This is a plan for the next five years to further strengthen the non-ticket business segment and enable Prasarana to generate additional, robust income. The group is optimistic that the non-ticket business segment will provide a significant contribution," she added.