Loke said decentralisation was conditional on the state governments footing part of the subsidy costs. — Picture by Shafwan Zaidon

PUTRAJAYA, March 5 — The government may soon decentralise the stage bus system nationwide in an effort to reduce its annual subsidy, said Transport Minister Anthony Loke.

He said the problem of providing yearly subsidies is unsustainable as costs keep escalating.

“The central government cannot afford to go on like this indefinitely. As a result we are considering to separate the powers between the state and central governments,” Loke said after chairing the National Transportation Council meeting.

Under this, state governments will be empowered to create their own networks for buses, as well as appoint bus operators from either private or state-owned sectors.

“This is what we are looking at, although for this year at least the status quo of subsidies from the central government and appointing of operators by us will remain.

“We felt decentralisation is also beneficial since the states themselves would be more familiar with their own routes and locations for the network, as compared to the central government,” he said.

However, Loke said decentralisation was conditional on the state governments footing part of the subsidy costs.

“How they will bear part of the subsidisation, we will discuss with them later on.

“It is also likely that wealthier states can expect to bear more of the subsidy costs, whereas in poorer states the central government will bear higher costs,” he said.