


Assisting operators to improve their bus services for the benefit of the Rakyat
An initiative under the Urban Public Transport National Key Result Areas (UPT NKRA), the ISBSF fund was established to improve the quality of bus services, which in turn would encourage the rakyat to consider the bus as a viable mode of transport. The fund acts as an interim measure to cover the shortfalls in daily operations of affected stage bus operators, especially on social routes (neighbourhood routes that are less profitable to the operators).
By providing this funding, APAD hopes to ensure the continuous operation of these routes by operators, thus improving the quality of the existing bus services as well as invite more commuters to use the bus.
The ISBSF fund was first allocated on 3 January 2012, with the government providing RM 400 million to help bus operators by paying for the social routes. At present, APAD continues to provide payments to participating operators from the funding provided in 2015. The funding is expected to continue for 2016.
The primary objective of the ISBSF Programme is to address the shortfalls in daily operations of stage bus operators, which in turn will ensure the continuity of its services. Secondly, the fund will encourage bus operators to reactivate routes which have been terminated, and will also motivate them to improve the service quality of their buses, which includes increasing the frequency of their trips and improving bus conditions.
*In reference to the statement “must be able to operate immediately…”, does this mean it is only applicable to stage bus operators that have ceased from operating their routes? Can I still apply for the fund if my company is still operating on the existing routes?
- An existing operator that operates the route is eligible to apply for the fund due to the fact that it can operate the route immediately.
- Operators who have stopped servicing the route within 12 months prior to the date of application are still eligible to apply for the fund.
Application
Where can I get the application form?
- APAD’s website www.apad.gov.my
- APAD’s regional offices
When can I get the application form?
- The forms have been made available to operators since 3 January 2012 at the abovementioned channels.
Where can I submit the application to?
- APAD’s head office at:
Agensi Pengangkutan Awam Darat (APAD)
Level 6, Block D, Platinum Sentral
Jalan Stesen Sentral 2
Kuala Lumpur Sentral
50470 Kuala Lumpur
Malaysia
Payment
How will operators receive the fund?
The fund will be deposited into the individual operator’s bank account as stipulated in the Agreement.
When can operators receive the fund?
The operator will receive the first payment of the fund within 14 days after the Agreement is duly signed by both parties.
How will the fund be disbursed to successful applicants? Will the fund be given in full or will the fund be disbursed in staggered payments?
Subject to the terms and conditions as stipulated under the Agreement, the fund will be paid to successful applicants on a monthly basis for a period of six months and may be extended for another six months.
Submission of Documents
How long is the application process?
Provided that the individual operator submits the documents required by APAD, the application process should not take more than four weeks.
The disbursement of the fund is on a monthly basis. Do I need to submit any additional documents to receive the subsequent payment(s)?
For an operator to receive the follow-up payment(s), the following documents MUST be submitted within the first week of the month:
- Revenue per route
- Operating cost per route
- Driver’s salary
- Driver’s incentives (if any)
- Fuel cost
- Other related operating and administration costs
- Number of total ridership per route for the past month
- Number of trips per route for the past month
- Kilometre runs per route
*If the operator is unable to provide the total cost of operation per route, they may submit their management account instead
General
How much funding can I ask for?
The allocation of fund to be sought by the operator shall be based on the revenue collection, the number of return trips, distance covered and number of days in operation.
Am I signing an Agreement for all the approved routes? What happens if I decide to terminate one or more of the approved route(s) in the Agreement?
Yes, signing the Agreement implies that the operator is ready to serve all approved routes. Termination of some of the existing routes will result in the fund not being disbursed for these non-active routes. Operators will be asked to operate these terminated routes or to surrender the permits for each route if they are unable to operate them.
What are APAD’s measures for the decision to allocate the fund to an individual operator?
The measures taken by APAD to reach the decision includes, thorough evaluation of service necessity and an assessment of the potential ridership within the area. APAD will also monitor ridership on a monthly basis to identify the route’s viability.
What happens if the fund disbursed by APAD is insufficient to cover my operating costs? Can I terminate the contract with APAD?
The fund allocation by APAD to operators will be reviewed from time to time. Operators may inform APAD in writing if the fund that has been disbursed is insufficient to cover the operating costs. It will be at APAD’s discretion to increase the approved fund allocation.
Operators must substantiate their claims for the fund with supporting documents. APAD also reserves the right to assign the respective routes to other operators should the existing operator is unable to operate the route due to insufficient funds. The other operators are selected based on willingness to take over the routes. Once the agreement has been made, APAD will then re-allocate the fund to the new operator accordingly.
The operator claiming insufficient funds MUST inform APAD of the decision to terminate the route in writing.
What happens if I stop operating the route after my application has been approved?
If payment has been deposited into the operator’s bank account, the operator MUST return to APAD the whole amount that has been deposited within one (1) month after receiving the fund. Any delay in repaying the amount will be subject to interest charges to the total amount payable. The interest that is chargeable to the operator will be equivalent to the short-term “Malaysian Government Securities” rate on the date of termination.
Who decides whether to approve or reject the application of an operator, and how can the operator appeal for a second application?
The decision to approve or reject the application of an operator will be made by APAD. If the operator’s application is rejected, the operate may appeal for a second attempt by writing to APAD.
How does the public benefit from the ISBSF?
The public benefits from the improvement of stage bus services. Improvement of the services will consequently increase the public’s confidence in the reliability of stage bus services.
As a member of the public, how can I lodge a complaint if the operator fails to provide satisfactory stage bus services?
All public enquiries, feedback and complaints can be channelled to APAD’s Hotline at 1800-88-APAD (7723). Alternatively, the public can also provide their complaints to APAD via the official website: www.APAD.gov.my
1. How do I apply for the ISBSF Fund?
- Step 1: Download and print the ISBSF fund application form from the tab Download Content
- Step 2: Fill up the form and attach all required documents. Refer to the “Submission of Documents” section in the tab “Eligibility Criteria”.
- Step 3: Submit the form and relevant documents by hand or by courier to:
The ISBSF Taskforce
Agensi Pengangkutan Awam Darat (APAD)
Level 6, Block D, Platinum Sentral
Jalan Stesen Sentral 2
Kuala Lumpur Sentral
50470 Kuala Lumpur
What documents do I need to submit to apply for the ISBSF Fund?
For the initial payment, applicants need to submit:
No. | Type of Document | Requirement |
---|---|---|
1 | Audited account | Previous 2 years’ statements (or other forms) |
2 | Company profile | Forms 24, 29, shareholders’ names or other forms |
3 | Operation Information (Bahagian B) | Last 6 months |
4 | Waybills | Last 6 months |
5 | Management account | Last 6 months |
6 | EPF or SOCSO statements | For each individual driver |
7 | Hire purchase agreement and Insurance (if any) | Age of bus must be less than 6 years (priority requirement) |
If the operator is deemed to be eligible for the fund by APAD, payment will be processed within 4 weeks and the Agreement will be released for a contract period of 6 months.
After receiving the initial payment, the operator must prepare monthly submissions of documents to APAD in order for the subsequent payment(s) to be processed.
The following documents must be submitted monthly:
No. | Type of Document | Requirement |
---|---|---|
1 | Operation information | Daily, summary and total |
2 | Waybill | As and when requested |
3 | Management account | Monthly statements |
* Document templates are provided. Kindly refer to the tab “Download Content”
Upon expiration of the contract, the ISBSF Task Force team will conduct an audit check to evaluate whether the operator has complied with the requirements of the Agreement.
- Document templates :
Initial Submission- Waybills (6 month)
- Management account (6 month)
- Operation Information (6 month)
- Hire purchase summary forms
- Monthly Submission
- Waybills
- Management account
- Daily operations information
- Summary of Operation Information
The payout to operators will depend on whether operators suffer losses on each of the routes served. The contributing factors are kilometres per run per month and revenue collection on every route served.
No. | Service Parameter | Service Standards |
---|---|---|
1 | Service Reliability | |
1.1 | Number of Trips |
|
1.2 | Scheduled Frequency |
|
2 | Compliance to Laws | |
2.1 | Traffic and environmental violations on all bus services |
|
2.2 | Criminal offences by bus operators’ personnel |
|
3 | Service Availability | |
3.1 | Route Servicing |
|
4 | Service comfort | |
4.1 | Bus conditions |
|
5 | Information | |
5.1 | Availability of up-to-date information |
|
State | Eligible |
---|---|
Kedah | 5 |
Pulau Pinang | 1 |
Perak | 17 |
Melaka | 2 |
Negeri Sembilan | 7 |
Johor | 19 |
Terengganu | 5 |
Pahang | 11 |
Kelantan | 1 |
Selangor | 5 |
Kuala Lumpur | 7 |
Total | 80 |
Sabah | 7 |
Sarawak | 13 |
Total | 20 |
The total sample size for the Passenger Satisfaction Survey was 3102 passengers with the demographics covered as below:
Mainly, passengers surveyed utilised bus services because:
- They are readily accessible
- None or limited transportation choices
- Route information is readily available
The top three main issues encountered when travelling by bus are:
- Long waiting time
- No facilities provided for OKU passengers
- Traffic congestion
The survey found that:
- More than ½ of the passengers surveyed used the bus less than 5 times a week
- About a 1/5 of the passengers surveyed had to wait more than 30 minutes for bus services
According to the findings, passengers use the bus mostly due to its scheduled trips and frequency. However, about 26% of those surveyed also stated that buses are delayed by more than 20 minutes.
Based on the survey, passengers believe that the bus services provide moderate security and safety assurance during their trips.
Additionally, about 95% of passengers claimed that operators follow the same designated route daily. This increases confidence in the bus sevices. About 37% of those surveyed are satisfied that operators operate the same hours every day, while 60% of passengers claimed that the bus sometimes operates the same hours every day.
The Star Online, 28th December 2011 – JOSEPH KAUR Jr
Busmen Can Apply for Interim Fund from Tuesday- New Straits Times, 3rd January 2012 – BERNAMA
Stage Bus Support Fund Application Form Now Available - The Star Online, 3rd January 2012 – JOSEPH KAUR Jr
Bus Misery, Tens of Thousand Likely to be Stranded Due to Standstill in Service - The Star Online, 4th March 2012 – JOSEPH KAUR Jr
Kelantan First to Get Bus Fund - The Star Online, 2 January 2012
SPAD on driver-owned mini buses - The Star Online, 11 June 2012
Aid for eight more stage bus operators - New Straits Times, 27 December 2012
Pahang bus firms given RM1.8m - The Star Online, 11 January 2013 - INTAN FARHANA ZAINUL
Mara buys more buses to upgrade services