Dissolving SPAD and postponing Kuala Lumpur-Singapore HSR project-

The newly elected government of Malaysia has announced major changes in the country’s public transport sector. It will dissolve the Land Public Transport Commission/Suruhanjaya Pengangkutan Awam Darat (SPAD). The government is also planning to postpone the development of the Kuala Lumpur-Singapore high speed rail (HSR) project.

Dissolution of SPAD

SPAD will be replaced by the Agensi Pengangkutan Awam Darat (APAD), which will manage the functions of and develop policies for the country’s land transport sector, including the mass rapid transit (MRT), light rail transit (LRT) and bus systems. The commission will be under the Ministry of Transport for better integration of Malaysia’s public transport system.

To avoid functional overlaps, Malaysia’s Road Transport Department/Jabatan Pengangkutan Jalan (JPJ) will carry out enforcement and over-the-counter services under the Land Public Transport Act, 2010 (LPTA, 2010). It will also issue licences and permits for public transport operators.

About the agency

SPAD is currently the central authority for public transport in Malaysia. It was established in 2010 under the LPTA, 2010 and is responsible for drafting public transport policies, plans and regulations to develop a comprehensive, integrated and sustainable infrastructure as well as regulate the performance standards of transport operators through licensing. In 2013, SPAD received approval from the government for its Land Public Transport Master Plan, which proposes a long-term programme to improve the public transport network and make it more efficient.

It currently oversees the operations of the intercity/commuter rail, MRT, LRT/monorail and bus network in Malaysia.

Table 1 provides details about the current rail network operated by SPAD.

Operational bus/BRT network: Since 2012, SPAD has retained the stage bus/local bus services through the Interim Stage Bus Support Fund to sustain the operations of 175 stage bus operators and 659 routes. This system serves over 330,000 passengers per day. In 2015, SPAD announced plans to introduce contract-based routes to improve the performance and efficiency of stage bus services.

The first bus rapid transit (BRT) corridor, Sunway BRT Line, commenced operations in 2015. It spans 5.4 km from the Sunway Setia Jaya to USJ 17 Subang Jaya, covering seven stations. A fleet of electric buses supplied by BYD has been deployed, with each having the capacity to carry 67 passengers. The service frequency is five minutes.

Expected impact of the dissolution

About 800 people, currently employed in SPAD, will be redeployed. Around 400 people employed in SPAD’s enforcement team will be relocated to JPJ’s enforcement section. Discussions are also under way for the employment of the remaining staff.

The dissolution of SPAD has faced both appreciation and criticism. Some supporters state that the move is imperative as the outcomes were not in line with the huge allocations that the agency was receiving from the government’s annual budgets. The move will provide a new platform for fresh talent and opportunities.

However, some critics state that that the move is purely political and may prove to be catastrophic for the country. The gradual dissolution of the government agency inherited by the previous government is expected to result in chaos and affect the transport sector.

Scrapping of Kuala Lumpur-Singapore HSR project

In May 2018, the Malaysian government announced its intention to abandon the development of the Kuala Lampur-Singapore HSR project and offer a compensation of around $126 million to the Singapore government. However, two weeks later, the government announced that the HSR project had been postponed and not cancelled. The government will re-evaluate the project and either postpone the implementation of the project or reduce the scope of work in case of shortage of funds.

Project background

The project was announced in 2010 and was being developed by the Malaysia High Speed Rail Authority (MyHSR) and Singapore’s Land Transport Authority (LTA). LTA formed SG HSR Pte Limited as a wholly owned subsidiary to build, own, fund and maintain the civil works in Singapore.

In December 2016, the Malaysian and Singapore governments signed the official agreement through MyHSR and Singapore’s LTA to construct the 350 km line, covering eight stations. Of these, seven stations were planned to be developed in Malaysia (Bandar Malaysia, Putrajaya, Seremban, Ayer Keroh, Muar, Batu Pahat and Iskandar Puteri) and one in Singapore (Jurong East). Construction was earlier planned to begin in 2018 and be completed by 2026.

As per the agreement, both the countries were to design, build, finance and maintain the line and stations within their territories. Table 2 provides details about the key contracts awarded for the project.

Conclusion

The Klang Valley region has a world-class transportation system and SPAD’s comprehensive and systematic approach towards development has made things even better. The government’s initiatives and investments in public transportation infrastructure since 2010 under the Urban Public Transport NKRA resulted in increased ridership. The modal share of public transport was 10 per cent in 2010 and 15 per cent in 2015. Service quality has also improved. The Customer Satisfaction Index, an independent survey carried out by SPAD, indicated that 84 per cent of the respondents were satisfied with urban public transport in 2016, an increase of 10 per cent from 2015. However, SPAD also faced criticism with respect to increased fares, lack of interconnections with other modes of public transport and the poor performance of feeder bus services. Further, the increasing debt of Malaysia’s economy has led to the postponement and cancellation of several projects, including the inter-country HSR project. This may lead to major revenue losses for players and contractors involved in the projects; however, it is expected to benefit the airlines sector. Projects announced by the earlier government will be re-evaluated and a final decision will be announced once the country’s finances improve.