Will ferry operators face subsidy cuts for raising fares?

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Ferry Operators Risk Losing Diesel Subsidies If Fares Are Increased

Ferry operators who implement fare hikes will be ineligible for diesel subsidies, according to a directive from the Ministry of Transport. This warning comes after Langkawi ferry operators announced plans to increase fares effective January 1 next year, a move that has drawn criticism from the ministry. The government had previously secured approval to provide diesel subsidies to ferry operators serving major islands, including Langkawi, also commencing January 1.
Diesel Subsidies Approved for Island Ferry Services

The Ministry of Transport received in-principle approval from the Ministry of Finance to extend diesel subsidies to ferry operators servicing key islands nationwide. This initiative is set to begin on January 1 next year. The intention behind this subsidy is to support the operational costs for these essential transport services, particularly for routes connecting to islands such as Langkawi.
Langkawi Ferry Operators Announce Fare Hikes

Despite the impending diesel subsidies, ferry operators serving Langkawi announced fare increases that are scheduled to take effect on January 1 next year. Reports indicated that round-trip fares between Kuala Kedah, Kuala Perlis, and Langkawi would see a RM3 increase, bringing the total to RM10.50. This decision was made public shortly before the new subsidy scheme was to be implemented.
Warning Issued Against Fare Increases

Transport Minister Anthony Loke expressed his disappointment with the Langkawi ferry operators' decision to announce fare increases. He explicitly warned that any operator proceeding with fare hikes would forfeit their eligibility for the newly approved diesel subsidies. Loke urged the operators to retract their announcement and engage in discussions with the Ministry of Transport to resolve the matter.

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Will ferry operators face subsidy cuts for raising fares?

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