KUALA LUMPUR, Dec 3 ― A DAP federal lawmaker has written to the Domestic Trade, Cooperatives and Consumerism Ministry alleging that the proposed fare hike for the KLIA Express is illegal as it violates provisions in the Anti-Profiteering Act 2011.

In the letter to ministry secretary-general Datuk Seri Alias Ahmad, Tanjong MP Ng Wei Aik claimed the hike violates Section 14 of the Act, and said this warrants an investigation by the ministry.

“Any permission given be it by the federal government or SPAD (Land Public Transport Commission) should not contradict any enforced law,” he added.

Section 14 of the Act says that any person who, in the course of trade or business, profiteers in selling or offering to sell or supplying or offering to supply any goods or services commits an offence.

If a corporate body is found guilty of profiteering, Section 18 of the same Act imposes a fine not exceeding RM500,000 and for a second or subsequent offence, a fine not exceeding one million ringgit.

Ng noted that rail operator Express Rail Link (ERL) had signed a 30-year concession agreement in 1997 to build and operate the speed train between Kuala Lumpur and the Kuala Lumpur International Airport (KLIA).

But the construction cost of RM100 million for the extension to KLIA2 was not undertaken by ERL but fully borne by the federal government, he pointed out.

“This mean KLIA Express enjoyed profits owing to the increase in passengers without having to pay extra costs,” Ng claimed, adding that the train service provider had already made its gains in 2003 after having operated for only a year.

In a statement on Tuesday, ERL announced it will increase the fare for the KLIA Express from the current RM35 to RM55 beginning January 1.

It also increased rates for its KLIA Transit service by between 45 and 57 per cent.

The firm stressed, however, that the new rate is still less than what the firm was entitled to charge based on its concession agreement, which is said allowed it to set the fare at RM64 per journey.

ERL said the increase was needed to keep the service sustainable, citing losses amounting to RM671 million since the KLIA Express began operating in 2002.

Serdang MP Ong Kian Ming yesterday urged the Transport Ministry to postpone the increase as ERL and YTL Corp — the majority owner of the venture and infrastructure provider — were already profiting from the service.

He said the KLIA Express was already subsidised RM5 from the airport tax paid by every international traveller and that ERL benefited from increased ridership with the RM100 million KLIA2 extension that was paid for by the government.