The government is considering privatising Keretapi Tanah Melayu Berhad (KTMB) but no final decision has been made yet.

“The government is not discounting the possibility of privatising KTMB, to ensure that public rail service is efficient, comfortable and cost-effective...,” Finance Minister Najib Abdul Razak said in a written reply to Liew Chin Tong (DAP-Bukit Bendera) yesterday.

Najib added that privatising KTMB will also ensure that the company “will not be continuously dependent on government funds like it is now.”

He said that as a goverment-owned entity, KTMB’s objective is not just to gain profits but also to perform the social responsibility of providing comfortable and efficient rail service to the masses.

“Thus KTMB is unable to raise enough funds on its own to sustain rising operating costs,” he said.

Najib said that despite the “positive impacts” of privatisation, the government is still undecided on the matter as it needs to study it to ensure benefits to both the government and the rakyat.

“(This is) especially so in the effort to transform KTMB to be more competitive and be the backbone of our public transport system,” Najib said.

‘Gov’t shirking responsibility’

Liew had asked Najib, who is also prime minister, the rationale for privatising KTMB.

NONE MMC Corp, controlled by business tycoon Syed Mokhtar al-Bukhary ( right ), was last month reported to have submitted its proposal to take over KTMB.

Fearing a transfer of assets amounting to billions of ringgit into private hands, the Selangor government said that land in the state loaned to KTMB is not for sale . 

Commenting on the matter, Liew said KTMB’s financial troubles are due to “poor management”, with its businesses “cannibalised”.

“KTMB is not given the profitable route of airport transit and it is not given a prominent role in urban transport in major cities like Kuala Lumpur.

“For poor governance, the government is responsible. Privatising KTMB is abdicating the government’s responsibility,” he said.

Liew added that privatising KTMB to Syed Mokhtar is also a “bad idea” as the tycoon already has control of several strategic businesses like Proton, Bernas and the MRT construction through his various business entities.

“Controlling KTMB will give him complete control over the transport sector as he operates two ports in Johore and is about to control the Penang port, which the DAP opposes,” the MP said.

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