KUALA LUMPUR, Nov 2 — Just like motorists, commuters who rely on the rail services of Keretapi Tanah Melayu Berhad (KTMB) in the Klang Valley can expect to fork out up to 36 per cent more for tickets from December 2.

However, KTMB president Sarbini Tijan told a news conference today that the increase was the last resort in the firm's bid to stem its losses and would not overly burden its customers.

Commuters would only pay 75 per cent of the total cost while KTMB will subsidise the remaining 25 per cent, either through government aid, or failing which the company will foot the amount.

“According to our cost, each kilometre costs 20 sen but now what is approved by the government is only an increase to 15 sen; now the fare is 11 sen so only 4 sen increase,” he said during a press conference at KL Sentral here.

He added that KTMB has been “operating on a loss” over the last five years as Putrajaya usually does not approve the full subsidy amount requested by KTMB.

“We always operate on a loss, even with government subsidies. Government subsidy they're only giving us our cost. Now with GST buying our equipment, we need to pay GST and vendors also want to make a profit,” he added.

This is KTMB's first fare increase in 12 years and was sorely needed to due to the higher operational costs incurred from running upgraded facilities, Sarbini said.

He added that the depreciating ringgit has also affected KTMB as they have must purchase all their spare parts from China in US dollars.

The ringgit is currently trading around 4.30 to the US dollar, down from the 3.20 level just a year ago.

“If we buy overseas, we buy the spare parts using US dollars so our ringgit to US dollar is about 30 per cent difference... But I hope that it is temporary,” he said.

Sarbini noted that the price hike will only affect commuters in the Klang Valley from Tanjung Malim to Sungai Gadut as well as from Batu Caves to Port Klang as “geopolitical and lifestyle factors” prevented KTMB from implementing the new fares in its southern and northern sectors.

The new fare increase will be as high as RM7.10, with the fare favouring those who use KTMB to travel longer distances.

“It is the government's initiative to encourage people living outside Kuala Lumpur to use public services, particularly to travel from the suburban areas to work in the city centre,” he said.

Last month, Putrajaya announced that tolls at highways operated by 11 concessionnaires in the Klang Valley would be raised between 20 sen and RM3.

The reception to the increase was naturally hostile as the announcement came amid inflation concerns triggered by ringgit's sharp drop and a new consumption tax introduced in April.