LANGKAWI: Langkawi Ferry Line Ventures Sdn Bhd (Ferry Line) has denied that it had acted hastily in announcing fare increases for ferry services from Kuala Perlis and Kuala Kedah to Langkawi on Sunday.
Its general manager, Captain Dr Baharin Baharom, said the company had valid reasons for the move, which involved fare hikes ranging between RM3 and RM10.50 after the last fare revision 15 years ago.
He clarified that the announcement on Sunday, which has been deferred hours later for Malaysian passengers, stemmed from an unfulfilled commitment made during a fare revision on Aug 5, 2022.
"The 2022 adjustment, the first in 15 years, only permitted a partial fare increase of 50 per cent, translating to RM6 for the Kuala Perlis–Langkawi–Kuala Perlis route and RM7 for the Kuala Kedah–Langkawi–Kuala Kedah route.
"The remaining 50 per cent, or RM3 and RM3.50 respectively, was scheduled to take effect after 24 months. Ferry Line had sought to fulfil this agreement, but the absence of a formal response forced us to take an unpopular, albeit necessary, step," he said in a statement today.
Baharin said the company had repeatedly sought a resolution, citing Section 65D(d) of the Merchant Shipping Ordinance 1952, which places fare regulations under federal jurisdiction. He said the lack of response compelled the company to act, despite public discontent.
"We acknowledge the reactions to the fare increase and its subsequent cancellation, which some viewed as hasty," he said.
Baharin said that rising operational costs had placed the company under significant financial strain.
"Labour costs, including the minimum wage, have increased significantly from RM800 to RM1,700. Even with the adjustments, Ferry Line's ticket prices remain the lowest among ferry operators in Malaysia," he said.
Baharin thanked the Finance Ministry and Transport Ministry for the diesel subsidy assistance programme.
"We extend our heartfelt appreciation to both ministries for their support," he added.
On Sunday, Ferry Line announced plans to increase fares for round trips from Kuala Kedah and Kuala Perlis to Langkawi by RM3 to RM10.50, effective Jan 1, 2025.
In response, Transport Minister Anthony Loke urged the company to retract the announcement immediately or risk losing access to subsidised diesel.
Loke called on the ferry operator to withdraw its plans and engage with the ministry to find a suitable solution. The ferry operator later retracted its plans to increase the Langkawi ferry ticket fares for domestic users. (hyperlink: )