The fortunes of another ailing Malaysian transport giant is likely to soar in coming months – thanks to higher charges being imposed by Singapore on lorries transporting goods into the island-state from Aug 1.
While lorry drivers bemoan the steep hike of the Goods Vehicle Permit (GVP) monthly fee for foreign-registered goods vehicles being raised four-fold – from S$10 (RM25.70) to S$40 (RM102.80) – KTM Bhd stands to gain when transport charges get raised.
While the GVP hike may seem small, Singapore has imposed a double whammy by making it compulsory from Tuesday for Malaysian lorries to use only Euro 5 standard diesel to reduce polluting smoke being spewed on the island’s roads.
When combined, early indications are that transport charges by Malaysian lorries plying the Singapore route could raise fees by as much as 50% in the coming weeks.
Such a development could bode well for KTM and would mark its return to its roots as a mainly cargo service that transported tin ore, rubber and fresh produce from back in the late 1800s to the Singapore port. Full story
