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isbsf

Interim Stage Bus Support Fund (ISBSF)

Assisting operators to improve their bus services for the benefit of the Rakyat

An initiative under the Urban Public Transport National Key Result Areas (UPT NKRA), the ISBSF fund was established to improve the quality of bus services, which in turn would encourage the rakyat to consider the bus as a viable mode of transport. The fund acts as an interim measure to cover the shortfalls in daily operations of affected stage bus operators, especially on social routes (neighbourhood routes that are less profitable to the operators). 

By providing this funding, SPAD hopes to ensure the continuous operation of these routes by operators, thus improving the quality of the existing bus services as well as invite more commuters to use the bus.

The ISBSF fund was first allocated on 3 January 2012, with the government providing RM 400 million to help bus operators by paying for the social routes. At present, SPAD continues to provide payments to participating operators from the funding provided in 2015. The funding is expected to continue for 2016. 

 

The primary objective of the ISBSF Programme is to address the shortfalls in daily operations of stage bus operators, which in turn will ensure the continuity of its services. Secondly, the fund will encourage bus operators to reactivate routes which have been terminated, and will also motivate them to improve the service quality of their buses, which includes increasing the frequency of their trips and improving bus conditions.

*In reference to the statement “must be able to operate immediately…”, does this mean it is only applicable to stage bus operators that have ceased from operating their routes? Can I still apply for the fund if my company is still operating on the existing routes?

  • An existing operator that operates the route is eligible to apply for the fund due to the fact that it can operate the route immediately.
  • Operators who have stopped servicing the route within 12 months prior to the date of application are still eligible to apply for the fund.

Application

Where can I get the application form?

  • SPAD’s website (www.spad.gov.my)
  • SPAD’s regional offices
  • SPAD’s head office at Platinum Sentral

When can I get the application form?

  • The forms have been made available to operators since 3 January 2012 at the abovementioned channels.

Where can I submit the application to?

  • SPAD’s head office at:
    Suruhanjaya Pengangkutan Awam Darat (SPAD)
    Block D, Platinum Sentral
    Jalan Stesen Sentral 2
    Kuala Lumpur Sentral
    50470 Kuala Lumpur
    Malaysia

Payment

How will operators receive the fund?
The fund will be deposited into the individual operator’s bank account as stipulated in the Agreement.

When can operators receive the fund?
The operator will receive the first payment of the fund within 14 days after the Agreement is duly signed by both parties.

How will the fund be disbursed to successful applicants? Will the fund be given in full or will the fund be disbursed in staggered payments?
Subject to the terms and conditions as stipulated under the Agreement, the fund will be paid to successful applicants on a monthly basis for a period of six months and may be extended for another six months.

Submission of Documents

How long is the application process?
Provided that the individual operator submits the documents required by SPAD, the application process should not take more than four weeks.

The disbursement of the fund is on a monthly basis. Do I need to submit any additional documents to receive the subsequent payment(s)?
For an operator to receive the follow-up payment(s), the following documents MUST be submitted within the first week of the month:

  • Revenue per route
  • Operating cost per route
  • Driver’s salary
  • Driver’s incentives (if any)
  • Fuel cost
  • Other related operating and administration costs
  • Number of total ridership per route for the past month
  • Number of trips per route for the past month
  • Kilometre runs per route

*If the operator is unable to provide the total cost of operation per route, they may submit their management account instead

General

How much funding can I ask for?
The allocation of fund to be sought by the operator shall be based on the revenue collection, the number of return trips, distance covered and number of days in operation.

Am I signing an Agreement for all the approved routes? What happens if I decide to terminate one or more of the approved route(s) in the Agreement?
Yes, signing the Agreement implies that the operator is ready to serve all approved routes. Termination of some of the existing routes will result in the fund not being disbursed for these non-active routes. Operators will be asked to operate these terminated routes or to surrender the permits for each route if they are unable to operate them.

What are SPAD’s measures for the decision to allocate the fund to an individual operator?
The measures taken by SPAD to reach the decision includes, thorough evaluation of service necessity and an assessment of the potential ridership within the area. SPAD will also monitor ridership on a monthly basis to identify the route’s viability.

What happens if the fund disbursed by SPAD is insufficient to cover my operating costs? Can I terminate the contract with SPAD?
The fund allocation by SPAD to operators will be reviewed from time to time. Operators may inform SPAD in writing if the fund that has been disbursed is insufficient to cover the operating costs. It will be at SPAD’s discretion to increase the approved fund allocation.

Operators must substantiate their claims for the fund with supporting documents. SPAD also reserves the right to assign the respective routes to other operators should the existing operator is unable to operate the route due to insufficient funds. The other operators are selected based on willingness to take over the routes. Once the agreement has been made, SPAD will then re-allocate the fund to the new operator accordingly.

The operator claiming insufficient funds MUST inform SPAD of the decision to terminate the route in writing.

What happens if I stop operating the route after my application has been approved?
If payment has been deposited into the operator’s bank account, the operator MUST return to SPAD the whole amount that has been deposited within one (1) month after receiving the fund. Any delay in repaying the amount will be subject to interest charges to the total amount payable. The interest that is chargeable to the operator will be equivalent to the short-term “Malaysian Government Securities” rate on the date of termination.

Who decides whether to approve or reject the application of an operator, and how can the operator appeal for a second application?
The decision to approve or reject the application of an operator will be made by SPAD. If the operator’s application is rejected, the operate may appeal for a second attempt by writing to SPAD.

How does the public benefit from the ISBSF?
The public benefits from the improvement of stage bus services. Improvement of the services will consequently increase the public’s confidence in the reliability of stage bus services.

As a member of the public, how can I lodge a complaint if the operator fails to provide satisfactory stage bus services?
All public enquiries, feedback and complaints can be channelled to SPAD’s Hotline at 1800-88-SPAD (7723). Alternatively, the public can also provide their complaints to SPAD via the official website: www.spad.gov.my

1. How do I apply for the ISBSF Fund?

  • Step 1: Download and print the ISBSF fund application form from the tab Download Content
  • Step 2: Fill up the form and attach all required documents. Refer to the “Submission of Documents” section in the tab “Eligibility Criteria”.
  • Step 3: Submit the form and relevant documents by hand or by courier to:
    The ISBSF Taskforce
    Suruhanjaya Pengangkutan Awam Darat (SPAD)
    Block D, Platinum Sentral
    Jalan Stesen Sentral 2
    Kuala Lumpur Sentral
    50470 Kuala Lumpur

What documents do I need to submit to apply for the ISBSF Fund?

For the initial payment, applicants need to submit:

No. Type of Document Requirement
1 Audited account Previous 2 years’ statements (or other forms)
2 Company profile Forms 24, 29, shareholders’ names or other forms
3 Operation Information (Bahagian B) Last 6 months
4 Waybills Last 6 months
5 Management account Last 6 months
6 EPF or SOCSO statements For each individual driver
7 Hire purchase agreement and Insurance (if any) Age of bus must be less than 6 years (priority requirement)

If the operator is deemed to be eligible for the fund by SPAD, payment will be processed within 4 weeks and the Agreement will be released for a contract period of 6 months.

After receiving the initial payment, the operator must prepare monthly submissions of documents to SPAD in order for the subsequent payment(s) to be processed.

The following documents must be submitted monthly:

No. Type of Document Requirement
1 Operation information Daily, summary and total
2 Waybill As and when requested
3 Management account Monthly statements

* Document templates are provided. Kindly refer to the tab “Download Content”

Upon expiration of the contract, the ISBSF Task Force team will conduct an audit check to evaluate whether the operator has complied with the requirements of the Agreement.

  1. Application Form
  1. Document templates :
    Initial Submission
    • Waybills (6 month)
    • Management account (6 month)
    • Operation Information (6 month)
    • Hire purchase summary forms
  1. Monthly Submission
    • Waybills
    • Management account
    • Daily operations information
    • Summary of Operation Information

The payout to operators will depend on whether operators suffer losses on each of the routes served. The contributing factors are kilometres per run per month and revenue collection on every route served.

No. Service Parameter Service Standards
1 Service Reliability
1.1 Number of Trips
  • At least 80% of the scheduled trips.
  • Buses shall adhere to the scheduled frequency
1.2 Scheduled Frequency
  • Any delay shall not be more than 15 minutes
2 Compliance to Laws
2.1 Traffic and environmental violations on all bus services
  • 100% compliance with traffic and environmental laws and regulations
2.2 Criminal offences by bus operators’ personnel
  • Personnel must be of good character and must not have been previously convicted of a criminal offense in Malaysia or elsewhere
3 Service Availability
3.1 Route Servicing
  • 100% compliance to approved routes
  • The bus journey MUST commence from the designated terminal/interchange
4 Service comfort
4.1 Bus conditions
  • Operators shall ensure that the exterior and interior of all vehicles used in the performance of the Agreement are washed a minimum of once per day
5 Information
5.1 Availability of up-to-date information
  • Operators will provide a hotline service and/or make available relevant information on the bus services on a website for journey planning
  • Operators will display a route thermometer and timetable at all bus interchanges and terminals
  • Operators will display a route thermometer and timetables at selected bus stops
  • Operators will display a route thermometer and timetables on the bus

For inquiries, please contact SPAD's Hotline at: 1800 – 88 – SPAD (7723)

As of June 2013, 80 operators have received the ISBSF in Peninsular Malaysia, while 20 operators have received the ISBSF in Sabah and Sarawak. Details of the disbursements received are as follows:
State Eligible
Kedah 5
Pulau Pinang 1
Perak 17
Melaka 2
Negeri Sembilan 7
Johor 19
Terengganu 5
Pahang 11
Kelantan 1
Selangor 5
Kuala Lumpur 7
Total 80
Sabah 7
Sarawak 13
Total 20

 

 

The total sample size for the Passenger Satisfaction Survey was 3102 passengers with the demographics covered as below:

Mainly, passengers surveyed utilised bus services because:

  • They are readily accessible
  • None or limited transportation choices
  • Route information is readily available

The top three main issues encountered when travelling by bus are:

  • Long waiting time
  • No facilities provided for OKU passengers
  • Traffic congestion

The survey found that:

  • More than ½ of the passengers surveyed used the bus less than 5 times a week
  • About a 1/5 of the passengers surveyed had to wait more than 30 minutes for bus services

According to the findings, passengers use the bus mostly due to its scheduled trips and frequency. However, about 26% of those surveyed also stated that buses are delayed by more than 20 minutes.

Based on the survey, passengers believe that the bus services provide moderate security and safety assurance during their trips.

Additionally, about 95% of passengers claimed that operators follow the same designated route daily. This increases confidence in the bus sevices. About 37% of those surveyed are satisfied that operators operate the same hours every day, while 60% of passengers claimed that the bus sometimes operates the same hours every day.

The public can provide their feedback and channel complaints to SPAD via the online feedback form.

Land Public Transport