Within the public transportation industry, the government (specifically, the Commercial Vehicles Licensing Board) has fixed fares at low rates for long periods of time, while allowing numerous providers to enter the industry. This has happened with urban transportation, taxicabs, school buses and express buses.

The results of these careless actions is that firms cannot meet their expenses with the existing fares and increasing competition, so they sacrifice safety and/or quality at the expense of the public. We have seen this again and again in the taxi industry, in the urban buses (Penang being a notorious example) as well as the intercity express bus industry.