OPENING KEYNOTE ADDRESS

by YB Dato’ Kamarudin Jaffar Deputy Minister Ministry of Transport

at Kingsley Strategic Institute for Asia Pacific’s Malaysian Economic and Strategic Outlook Forum 2020 “Agenda 2020 and Beyond – Where Do We Go From Here?” 21 January 2020 | Hotel Istana

“IMPROVING PUBLIC TRANSPORT IN MALAYSIA”

● YBhg Datuk Tan Cheng Kiat, President, Malaysian International Chamber of Commerce and Industry (MICCI) ● YBhg Tan Sri Dato Dr. Michael Yeoh, President, Kingsley Strategic Institute for Asia Pacific ● YBhg Datuk Seri Mohd Iqbal Rawther, Chairman, Economic Club of Kuala Lumpur ● Distinguished guests, Ladies and Gentlemen,

Assalamualaikum WBT and a very good morning.

1. First of all, I would like to thank the organizer, Tan Sri Michael Yeoh and his team from KSI for inviting me to deliver an opening speech at this forum. It is a great pleasure to be here with all of you today for this year’s Malaysian Economic and Strategic Outlook Forum. This forum is a good platform for us to have better insights on the current economic development of the country, share relevant information and network with each other.

2. In my address today, I would like to share some of the initiatives being taken by the Ministry of Transport (MOT) to help propel our country’s economy forward, and I will be limiting my scope mainly on the improving of our public transportation system.

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[Overview of Transport Sector]

Distinguished guests, Ladies and Gentlemen,

3. As we all know, the transport sector is among the critical enablers of Malaysia's socioeconomic development. The provision of an effective transportation infrastructure will allow a seamless flow of people, goods and services. The more seamless such flows are, the more a market can focus on production, trading, and consumption.

4. In 2017 the transportation and storage sub-sectors contributed 3.6% to our national GDP with a value of RM48.8 billion, and 6.6% to the services sector value-added. According to the Global Competitiveness Report 2018, Malaysia is the 25th most competitive country in the world in the period of 2018-2019. The transport sector has also contributed to this accomplishment. In 2018, Port Klang was ranked 12th and Port Tanjung Pelepas (PTP) ranked 18th in the world with 12.32 million TEUs and 8.96 million TEUs handled respectively. Meanwhile, KLIA ranked the 23rd busiest airport in the world in 2018 based on the total number of passengers handled, which was 59.96 million passengers.

5. To date, Malaysia has constructed over 200,000km of roads, over 2,900km of rail as well as 18 ports and 22 airports which form the backbone of Malaysia’s growth as a key player in the Southeast Asia and global markets.

[National Transport Policy (NTP) 2019-2030]

6. The National Transport Policy (NTP) 2019-2030 which was launched by Prime Minister Tun Dr. in October last year will further ensure the efficiency of Malaysia’s transportation system which directly correlates to trade and economic growth. The National Transport Policy 2019-2030 acts as a guide to upholding sustainable transport networks and services and consists of 5 thrusts. The

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first thrust aims to strengthen governance to create a conducive environment for the transport sector; while the second thrust seeks to optimize, build and maintain the country’s transport infrastructure, services and networks to maximize efficiency. The third thrust aims to enhance safety, integration, connectivity, and accessibility for a seamless journey; while the fourth thrust involves efforts to green the transport ecosystem. Finally, the fifth thrust aims to expand Malaysia’s transportation global footprint and promote the internationalization of transport services.

7. Malaysia has continuously built and upgraded its transport network by developing the road and rail arteries to support the mobility of people and goods. World class ports and airports such as KLIA and Port Klang had been built to support business and trade activities. Malaysia occupies a vital position along the Straits of , one of the most important shipping lanes in the world linking major Asian economies such as India, Indonesia, Malaysia, Singapore, China, Japan, Taiwan and South Korea. Each year, it is estimated that close to 100,000 vessels pass through the Straits making it the busiest strait in the world, carrying about 25% of the world’s traded goods.

[Improving the Public Transport in Malaysia]

Distinguished guests, Ladies and Gentlemen,

8. In terms of improving the public transport, it is always given a priority by the Government. Currently, there are a few large-scale public transport projects under construction in the Klang Valley. For example, the Sungai Buloh-Serdang- MRT which is expected to be completed by 2022 will provide services along a corridor of 2 million residents starting from Sungai Buloh, through Kuala Lumpur to Putrajaya. The LRT3 project, which connects Bandar Utama to Klang, will also integrate with the SBK MRT line at Bandar Utama station and the Kelana Jaya LRT line at Glenmarie Station. The LRT3 line is expected to be completed by 2024 to improve travel efficiency and help reduce traffic congestion for 2 million residents along the Bandar Utama-Klang corridor en route to downtown Kuala Lumpur. These projects are

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expected to benefit the region's economic growth while increasing the use of public transport in the Klang Valley.

9. Another big transportation project is the East Coast Rail Link (ECRL). This project is expected to be completed by December 2026 with a re-alignment of routes that will cover cities in , Putrajaya, , , and . The east coast states have a great economic potential, but it is facing a set- back due to limited access to transportation infrastructure, particularly rail infrastructure. ECRL is not only a catalyst for growth for the east coast states, but it will also further help boost Malaysia's economy as a whole because of its spill-over effects on various sectors. This is in line with the Shared Prosperity Vision 2030 which aims at achieving sustainable growth along with fair and equitable distribution, across income groups, ethnicities, regions and supply chains.

10. Although a strong public transport system is the catalyst for growth, the key always lies in the business community. As many of you here are in the private sector, I would like to strongly urge you to make serious considerations to spread your business operations to other states and cities and help create new jobs for the people.

11. In order to help increase the modal shift from private vehicle to public transport, the Government has introduced the Unlimited Monthly Pass of MY100 and MY50 for all rail and bus services under RapidKL since December 2018. While for KTM Commuter services in the Klang Valley, North and South Sectors, consumers can enjoy 20% discount on travel fares through the usage of XTRA20 card, which has been priced at RM5 for KTM Commuter counters since April 1, 2019. This has also directly lowered the cost of people using public transport in the Klang Valley.

12. To ensure connectivity in urban areas, the Government has also improved the coverage of public transport service area. For example, there were 3 new routes introduced in 2019 for GoKL's free bus service namely the Orange Route (Titiwangsa-MINDEF), the Pink Route (LRT University-PPR Seri Pantai) and the Turquoise Line (LRT Dato' Keramat-Flat Kelumpuk Bambu, Setiawangsa).

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Besides that, the Federal Government is also studying the expansion of public transport coverage in other states through the cooperation with the State Governments.

13. “First-mile, last-mile connectivity” is always a challenge in transportation. One of the strategies to tackle this is by leveraging new emerging technologies in the Fourth Industrial Revolution (4IR), such as Internet of Things (IoT), machine learning, big data analytics, cloud computing, and so on. E-hailing for example, is one of the solutions to “first-mile, last-mile connectivity” issue. In today’s digital age, e-hailing does not only stand as a transportation solution, but it also acts in a larger setting including seamless payment and job creation, as well as shaping a lifestyle and economy. Currently, we are also embarking on the Proof of Concept (POC) programme on bike-hailing since early this month in selected areas within the Klang Valley. The trial period is for six months with the objective to evaluate the feasibility and cultural fit of bike-hailing in the local context.

14. Nonetheless, taking into account the spirit of Shared Prosperity Vision 2030 (Wawasan Kemakmuran Bersama 2030) in the context of public transport, the Government also needs to ensure the equality and balance in the transport industry, particularly between various public transport service operators. For example, the Government has introduced some improvements in ensuring a level of playing field in the taxi and e-hailing industry such as (i) opening up all brands vehicle and model choice for taxi use, (ii) extended period PUSPAKOM periodic inspections and cost reduction to driver, (iii) the use of a dynamic fare for taxi services which takes passengers through the e-hailing application reservations in addition to meter mileage by street hail, (iv) commission rate setting maximum 10 percent by e-hailing company to taxi drivers for per trip and a few other improvements.

15. The Government is now emphasizing more on improving railway networks and services, as it will help increase public usage and the transportation of freight. Business community is encouraged to reduce the transportation of goods on the roads, as it could help ease congestion and reduce accidents involving heavy

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vehicles. Railway services in Malaysia are still considered underutilized, and we hope that more people will use them in the future, especially when major rail projects are fully completed. The Government will also be conducting a six-month feasibility study on the Serendah-Port Klang Rail Bypass construction project, as the allocation is already announced in the 2020 Budget speech. In addition, utilizing rail services also can help reducing carbon emission from the transport sector, which is in line with Sustainable Development Goals (SDGs) and Paris Agreement on climate change.

16. With respect to inclusivity and accessibility, the Government aims at providing a seamless journey for passenger and goods by enhancing safety levels, ensuring affordability, improving connectivity between transport modes and integrating services through digitalization. This includes creating user friendly and customized services to cater for people with disabilities, the elderly, women and children as well as those in the rural and remote areas. The Ministry of Transport (MOT) is regularly conducting Accessibility Audit on transportation facilities in order to improve public transport infrastructures. Public transport service providers are also encouraged to build facilities based on Universal Design.

17. The Ministry of Transport is also committed towards increasing women’s leadership representation in the transportation sector. For example, last year the Ministry has appointed the first woman General Manager to lead Port Commission - being the first woman General Manager in the port sector in our country. We will continue to push for women to represent 30% of decision-making positions within the Ministry and in our agencies. As our economy is growing, there is no doubt that the country, in particular the transport and logistics sector, requires massive professional human capital thus opening great opportunities for women involvements in the sector.

18. This year is a Visit Malaysia Year 2020. We are expecting a huge number of foreign tourists coming to Malaysia this year. Of course, public transport will play a major role in showing a good image of the country. While the government is responsible

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to ensure the safety aspects of public transportation, users must also be educated on how to appreciate facilities, and using them with responsibility and adhering to its etiquette. Public transport service providers, too, must make better maintenance as a work culture in order to provide highly reliable services. This is very important because public transport and tourism is very closely related, and tourism is also a source of our nation’s economic growth.

19. Finally, transportation always play a vital role in the development of the nation as it drives economic growth. I would also like to encourage all of you to use public transport more often. As for those who never use public transport, you will be surprised how comfortable they are and the facilities are now much better compared to many years before.

20. With that, I thank KSI once again for organizing this forum and wish all of you a successful MESOF 2020.

Thank you.

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