KPDN PROBES RM3 SPEEDBOAT FARE HIKE ON MENUMBOK–LABUAN ROUTE

LABUAN, Nov 5 (Bernama) -- The Domestic Trade and Cost of Living Ministry (KPDN) is investigating a RM3 increase in one-way fares for speedboat trips between Menumbok and Labuan, effective Nov 1.

Minister Datuk Armizan Mohd Ali said the probe follows complaints from former Kuala Penyu assemblyman Datuk Limus Jury over a notice issued by the Menumbok Speedboat Operators Association to passengers regarding the fare hike.

KPDN has directed its departments and agencies to take immediate action, including the Malaysia Competition Commission (MyCC), which will investigate potential anti-competitive practices, as well as the Controlled Goods and Subsidy Sector (SBKS),

bootstrap slideshow

“Under Section 4 of the Competition Act 2010 (Act 712), any agreement among companies to fix prices, fares or surcharges, whether through an association or otherwise, constitutes serious cartel conduct,” Armizan said.

He added that guilty companies could face fines of up to 10 per cent of their revenue, citing past action in which MyCC imposed RM687.9 million in penalties on 270 firms, including five RORO ferry operators in Langkawi fined RM2.2 million.

“KPDN will not tolerate economic sabotage through cartels that harm consumers and speedboat operators. We are committed to ensuring a competitive, fair and transparent market,” he said.

SBKS is also consulting the Labuan Marine Department to verify the licensing and registration of the operators involved.

“Registered public transport operators are eligible for RON95 fuel subsidies under the Subsidised Petrol Control System (SKPS). It is therefore unjustified to raise fares citing fuel costs,” he added.

Armizan stressed that the fare hike is a serious matter as it directly affects the cost of living, particularly for daily commuters.

-- BERNAMA