KUALA LUMPUR: The Transport Ministry is proposing a special electricity tariff tailored for the public transport sector to ease the financial burden on operators.
Transport Minister Anthony Loke said under the current system, public transport operators are charged the same electricity tariff as businesses, making it financially challenging for the sector.
"One of the things we are addressing is advocating for a special electricity rate for public transportation.
"Currently, the tariff is set for businesses, which makes it very costly for the public transport system.
"For operators like Mass Rapid Transit (MRT), Light Rail Transit (LRT) and Prasarana, electricity costs account for 30 to 35 per cent of their expenses, while for Keretapi Tanah Melayu Berhad (KTMB), it is around 35 per cent" he said.
He said this in a forum at CGS International 17th Annual Malaysia Corporate Day here today, chaired by CGS International Securities Malaysia independent board of director Tan Sri Shahril Ridza Ridzuan.
He said this significant cost is a burden for public transport operators.
"What we are proposing is the implementation of a special tariff to encourage public and private transport operators to go towards electrification," he said.
Meanwhile, Loke said the country should invest its resources in green fuel bunkering.
Malaysia, he said, can gain a competitive advantage over its neighbouring countries by producing sustainable fuel.
"This is where Malaysia should have a competitive advantage over other countries, especially our neighbouring nations because we have the resources to produce sustainable fuel," he said.
Loke said the country should focus on becoming a production-driven nation, rather than just a consuming country and ramp up production.
Green fuel bunkering refers to supplying cleaner energy sources for ship propulsion, including liquefied natural gas, biofuels, green hydrogen and ammonia.