Prasarana on track to achieve RM900m revenue this year


PRASARANA Malaysia Bhd is on track to achieve its highest revenue in five years and become operationally profitable in two years, according to its president and group CEO Datuk Mohamed Hazlan Mohamed Hussain.

“Our revenue is on the uptrend and I think it would be hovering between RM800 million and RM900 million this year — the highest in five years.

“Earnings before interest, taxes, depreciation and amortisation (Ebitda) over the five years had never increased but we expect it to increase sharply this year,” Mohamed Hazlan said at Prasarana’s first half of 2019 (1H19) performance briefing in Kuala Lumpur yesterday.

The company is confident in achieving positive Ebitda by 2021, he said.

Mohamed Hazlan said the cash-strapped transport service provider is now focused on three areas — increasing ridership, cost optimisation and enhancing quality of service.

The group currently manages an average daily ridership of 1.2 million passengers, with more than 740,000 passengers using the rail services every day.

The daily ridership of Prasarana’s bus services — which, apart from Rapid KL, also include those covered by Rapid Penang, Rapid Kuantan, Rapid Manjung and Rapid Kamunting — is over 450,000, while Feri Pulau Pinang, which is operated by Rapid Ferry, manages about 3,700 passengers a day.

The total ridership for the rail services year-to-date to June 30, 2019, has increased 10% year-on-year (YoY) to 113 million passengers.

Prasarana’s bus services, however, posted a decline in total ridership by 10% YoY to 81 million passengers.

Rapid Ferry’s total number of passengers for 1H19 was 700,00 passengers — an increase of 233% YoY.

In terms of quality of service, Rapid Rail — which operates the light rail transit (LRT), mass rapid transit and monorail lines — achieved a 99.96% score on service reliability, while Rapid Bus managed a 95.33% score on trip performance for its buses, which is calculated based on pre-planned trips against actual trips of the buses.

Rapid Ferry scored 95.53% on trip performance as well, which is calculated based on the percentage of ferry trips that are not lost due to maintenance issue.

On cost optimisation, the group exceeded its target by 10% after achieving a cost reduction of RM278.8 million against a target of RM238.5 million in 1H19, Mohamed Hazlan said.

Prasarana is working to put itself back on track after inflated costs on several key projects left the company saddled with debt, which led to the payment of employee salaries via a government bond issue in September last year.

The company remains among the top government-guaranteed borrowers with RM31.41 billion borrowed for the infrastructure and operations of the LRT and Rapid KL.

Various initiatives were undertaken under the three focus areas, including the Intergrated Management System (IMS) certification for five ISO standards — ISO 9001:2015 Quality Management System; ISO 14001:2015 Environmental Management System; ISO 45001:2018 Occupational Health and Safety Management System; ISO/IEC 27001:2013 Information Security Management System; and ISO 37001:2016 Anti-Bribery Management System.

Obtaining the certifications in an ambitious six-month drive has earned Prasarana a place in the Malaysia Books of Record as the country’s driver for public transport transformation, and was named as the “first organisation to receive five ISO certifications through the IMS in a single audit”.