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According to the proposal in the memorandum, the state government purchase the new buses for the operators and the 13 operators have unanumously agreed to repay the by instalemnt of RM3,000 per month for each new buses.

“Within 120 months, we would have fullty paid the buses purchased via the state government as finance compaines will not provide the loan due to due financial loses incurred by all the stage bus operators in Melaka,” he added.

According to the Memorandum, unprofitable or social routes, state government provides a reimbursement or at least a subsidy based on the distance travelled and number of tickets sold or a lump sum each bus that had to go the social routes.

According to Razali, the committee has worked out the break even point for thr each plying on social route is about RM600 per day. So, should the sale of tickets falls below that, the the state government pays for the diffential sum.

In other words, if the ticket sale is RM400, the state helps out the inevitable loss to provide services for community.

Razali also added that the said proposal would drivers and conductors would need to compete for profitable routes instead able to move on time irrespective of whether passengers fill up the bus or not.

In a related matter, Perumal said he via Deaprtment Information will answer to letter pertainnig to his portfolio.