KUALA LUMPUR: Transport Minister Anthony Loke has no problems with states wanting to play a more active role in public transportation matters, including embarking on projects and initiatives.

"The fundamental question to ask is whether or not a state can afford it," Loke said in an interview with the New Straits Times.

He said states, particularly those in the peninsula, had little fiscal space for transport projects as most tax revenue was channelled to the federal government.

"Except for Sarawak, no other state government can undertake public transportation (projects) because of the nature of our (Malaysia's) fiscal system."

Sarawak, Loke said, had a lot of resources at its disposal because of the sales tax it collected from petroleum products.

Since 2019, Sarawak has collected a five per cent state sales tax on petroleum products.

Between 2019 and Oct 6, 2023, the state government collected RM14.9 billion. For 2024, Sarawak expects to collect RM5.1 billion from sales tax.

Loke said he had no problem with states taking more responsibility to shape transport initiatives, citing Sarawak's experience.

"Sarawak can initiate its own public transportation projects and it has done so, and the federal government supports that.

"We don't have any issues or problems with the Sarawak government taking the lead and deciding on what kind of public transportation mode they want to implement," he said.

In recent times, some state governments had expressed a desire to embark on their own transport initiatives.

Sarawak and Johor are looking to introduce autonomous rapid transit projects (ART). Sarawak's hydrogen-powered ART is set to be operational in 2026.

Penang will embark on the Mutiara Line Light Rail Transit after receiving cabinet approval. The 29km-long LRT line is slated to begin operations in 2030.

Loke said for the time being, the government would still play a big role in shaping public transportation projects in states due to the financial constraints of state governments.

Loke said this was the case in Penang where it took more than 10 years to realise its LRT ambitions due to the state's financial limitations.

On the Mutiara LRT, Loke said he was confident the project could be completed on time, with construction starting as early as the first quarter of 2025.

He said cabinet approval was needed for the awarding of contracts and that this should happen "very, very soon".

Meanwhile, Loke said 2025 would see public transportation receive a "big boost", especially where first- and last-mile connectivity in the Klang Valley was concerned.

He said 300 new demand-responsive transit (DRT) service vans would be introduced by Prasarana Malaysia Bhd.

DRT refers to a service that matches supply and demand, leveraging technology and geo-zoning.

Unlike conventional transport services, where a vehicle follows a certain route at a certain time, a DRT service sees a vehicle respond to variations in demand by adapting its route and schedule.

DRT services often use mid-capacity vehicles like buses, passenger vans and MPVs.

Loke said first- and last-mile connectivity issues had always been a shortcoming of public transportation services in Malaysia and this was where the DRT would be key in resolving the problem.

"While in the past, the approach was to provide transit buses, but we know the limitations of transit buses. We can't cover all the areas, especially in Klang Valley, when the residential areas are scattered around in big residential areas.

"With DRT services using vans, we hope we can go to more places, we can cover larger areas, and be more mobile, agile and flexible.

"We hope this will help in solving the problem of first- and last-mile connectivity."

https://www.nst.com.my/news/nation/2024/12/1149810/states-can-initiate-transport-projects-loke