“Although we will still be subsidising RON95 for 85% of the population (by mid-2025), we are still doing a lot for public transportation.
“We have to understand that RON95 is used throughout the country, not just in the Klang Valley,” he told reporters at the Pasar Seni LRT station here today.
While public transport is widely available in the Klang Valley and other major cities, Loke said, not all regions have the same access, which is why the RON95 subsidy must continue.
“However, for big cities, our target is that the use of public transport would increase to 40% of the total transportation modes, to reduce traffic congestion.
“Traffic congestion remains a significant issue, especially in Kuala Lumpur, which is why we will continue to push for public transportation,” he said.
Last Friday, the transport ministry said that nearly 44% of its RM750 million allocation under the 2025 budget for public transport initiatives would be directed towards subsidies, including for rail and air services.
Among the key transport initiatives that will continue are the My50 (a RM50 unlimited monthly travel pass) and Mutiara passes (for Penang) subsidies, with an allocation of RM226 million, expected to benefit over 180,000 users in the Klang Valley and the north.
Prasarana has always been subsidised by the government
Loke also responded to Ridza Abdoh Salleh urging the government against subsidising public transportation, after the former Prasarana Malaysia Bhd CEO said subsidies would “kill” the company’s motivation and innovation.
He was puzzled by Ridza’s statement, saying Prasarana has always been subsidised by the government.
“But I look at it not as the government subsidising Prasarana, but subsidising the rakyat. We are doing this to encourage them to use public transport,” he said.
He said Putrajaya pays RM100 in subsidies a month for every My50 pass holder, which comes up to RM1,200 annually per person.
“We are doing this to encourage the use of public transport. It also helps to reduce the cost of living, especially for B40 households, who make up about 50% of My50 subscribers,” he said.