Schoolbus operators staring at bankruptcy

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Schoolbus operators are facing the risk of bankruptcy as parents are not paying monthly fares due to closure of schools in Conditional Movement Control Order (CMCO) zones.

Federation of Malaysian School Bus Operators Association president Amali Munif Rahmat said the operators had to bear the operational costs every month despite the school closures.

“School busses have fixed operational costs which have to be paid even though schools are not open and if the costs are not paid up, the company might have to cease its operation.

“This will end up with parents facing difficulties to secure school bus services for next year’s school session,” he said in a statement.

Amali said the school bus operators only earn 11 months a year but still have to pay the operational cost every month.

Now, due to the Covid-19 outbreak and Movement Control Order (MCO), the operators only collected fares for January, February, March, July, August and September.

“Many parents refused to even pay the full fares for March and July, while some are reclaiming the fares for October which were paid by the end of September.

“The choice is yours. We as business people will continue to face losses and switch to other businesses,” he added. Nst

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