BUS operators are at their wits’ end over debt and are looking to the government to help them continue their businesses.

They told The Malaysian Insight that, as they are unable to make ends meet or pay utility bills, they need the government’s help to get creditors off their backs.

This, they said, can be done if Putrajaya will expand the loan moratorium to also include repayment to creditors other than the banks.

A Penang operator, Mahadi Izadi Maharazi, said bus operators have had to borrow from other sources as many banks have rejected them as a credit risk.

“After negotiating, they agreed to allow us to defer our payments, but then, the interest rate is going up.

“We urge the government to pay our outstanding debts to the creditors; then, we will pay the government back,” he said.

Mahadi, who has been operating tour buses for the last 30 years, is worried that, if creditors repossess the buses, this will close the door on his only means of income.

He said the government can also shorten the insurance payment period from one year to four or five months, to help reduce operational cost.

“Even for the cheapest bus, we need to pay RM12,000 in insurance for a year. If it is a double-decker bus, the payment can go up to RM40,000 and above.

“If the government helps by shortening the period to four or five months, we can pay either RM4,000 or RM5,000.

“That will help us bear insurance costs, at a time when buses are hardly moving,” he said.

He was met with Ruslan Abdul Latif, president of the Northern Region Tour Bus Operators Association, who lodged a police report on Wednesday to demand the moratorium.

Another report was lodged in Kuantan on Thursday by the Pahang Malaysia Bus Association Secretariat, demanding a deferment for members to pay their debts to creditors.

Association rep Sathies Supramaniam named three ministries in the report – transport, finance and tourism.

Bankruptcy fears

Aziz Zainal Abidin, another operator from Batu Kawan, Penang, said the government’s Prihatin aid cannot alone solve everyone’s financial problems.

Aziz, who is temporarily running a factory bus service, said operators are worried about going bankrupt.

“We could go bankrupt. Our buses could be repossessed if we don’t service our loan instalments. That is why I am pleading with the government to be considerate with the tourism industry.

“On our part, we would also like to boost local tourism, so that the government can profit, too.

“If there is no help and we cannot service our loans, we will go bankrupt. We could be blacklisted, and this will make it hard for us to venture into other businesses.

“So, what else can we do?”

Aziz said he is even willing to hand over his buses to the government for free, as he is not keen on operating at a loss.

And, while he has thought of selling the buses and halting operations, it does not solve the issue of his mounting debt and paying his workers.

“Please, don’t make us come down to Putrajaya and protest in front of the Transport Ministry, as well as the Tourism, Arts and Culture Ministry.

“If the government wants our buses and it is willing to bear our loan instalments, we can hand over our buses for free.

“As long as our names are not blacklisted,” he said.

Allocations under Budget 2021 to boost tourism were met with criticism for being too focused on airlines.

Tour operators, meanwhile, have deemed the funds allocated for them as insufficient.

The government has allotted RM1.14 million for the sector next year, compared with RM1.1 million this year.

Among the government’s initiatives for the sector is providing training programmes for 8,000 airline workers, with an allocation of RM50 million.

About 500 jobs will be created for the Orang Asli community and locals to encourage eco-tourism activities.

A total of RM50 million will be provided for maintenance costs and an overhaul of tourism facilities, while RM20 million is for the promotion of cultural villages.

The government will also assist Sabah with a special grant of RM1,000 for taxi drivers, e-hailing drivers, car rental services and tourist guides.

The Malaysian Association of Tour and Travel Agents has said that, without government intervention, 10,000 tour and express bus operators owing RM3 billion to credit and leasing companies and not being given any loan moratorium will collapse.

Matta also urged Putrajaya to instruct banks to grant or extend the loan moratorium, as advised by Prime Minister Muhyiddin Yassin.

It also urged the government to consider taking over debts raked up by bus operators by either buying vehicles and financing their operations through credit companies, claiming that at least 1,200 buses in the northern region have been sold off to date. – November 16, 2020.