KTMB eyes 30 pct income contribution from non-fare segments in 2030

KTMB eyes 30 pct income contribution from non-fare segments in 2030

KUALA LUMPUR: Rail operator Keretapi Tanah Melayu Bhd (KTMB) says it targets to raise the contribution from the non-fare segments to 30 per cent of total income in 2030 from just three per cent currently.

Chief executive officer (CEO) Datuk Kamarulzaman Zainal said KTMB expects the non-fare segments to drive its growth this year with income growth from the fare segment expected to be flat.

Areas to be given focus include advertising and the railway maintenance equipment leasing business, he said.

“KTMB also sees income opportunities from Akademi KTMB (MyRA) in Batu Gajah, Perak and catering services on the Electric Train Service (ETS) and other train services.

“We are also looking at leasing equipment in KTMB’s inventory such as railway maintenance equipment,” he said at a media conference to mark his first 100 days as CEO.

According to the Auditor General’s Report 2018 Series 2 issued in December last year, KTMB’s accumulated loss as of Dec 31, 2018 stood at RM2.829 billion.

The audit found that the loss was due to, among others, KTMB not given the freedom to make its own decisions, particularly regarding the company’s operations and usage iof assets.

The audit also found that the rail operator’s sole reliance on train tickets indirectly contributed to its less stable financial position.

Meanwhile, Kamarulzaman said KTMB will roll out cashless fare payments from the middle of next year, and is currently in discussions with the country’s main e-wallet service providers on which system best suits its needs.

This cashless initiative will also help to further smooth operations and make it easier for customers to use KTMB’s services, he said, but noted that it is currently limited to just the Komuter Link and Touch ‘n Go cards and comprises only 20 per cent of total ticket transactions.

— BERNAMA


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