Few would contend that public transport should be run purely to maximise profit. Yet, as Prasarana Malaysia Bhd continues to operate at a huge deficit every year, scrutiny from the public and policymakers has intensified. Is the problem stagnant fares or an underutilised network of rail lines, buses and demand-responsive transit (DRT) services across the Klang Valley?
For Prasarana president and group CEO, the solution lies in getting more people to ride its network of rail and bus services. More people on trains and buses would spread the burden of high fixed costs and narrow the deficit. But reliability must improve.
On Jan 21, Transport Minister Anthony Loke told parliament that Rapid Rail recorded a RM603 million deficit in 2025. The company’s operating costs totalled RM1.324 billion, while unaudited revenue reached RM721.5 million — RM695.2 million from fares and RM26.8 million from non-fare sources. The My50 Unlimited Travel Pass accounted for RM234 million of Rapid Rail’s revenue in 2025, accounting for one-third of the company’s total revenue for the year. To plug the shortfall between revenue and operating costs, Prasarana injected RM700 million in capital into Rapid Rail in 2025.
Despite the losses, the company’s revenue has continued to grow. Revenue jumped 29.3% to RM839.56 million in 2024, from RM649.4 million in the previous year. Except for 2021, when its revenue fell from the preceding year, Prasarana’s top line has been growing over the five-year period to 2024.
One of Prasarana’s efforts to minimise operating costs is shifting its procurement of spare parts from original equipment manufacturers (OEMs) to original parts manufacturers (OPMs).
Reducing Prasarana’s deficits is not just a matter of cost management, given its substantial fixed costs. To achieve sustainability, the company must increase ridership, curtail costs and re-structure its business model.
Monthly ridership has climbed steadily as services improved, rising from a pandemic-era high of 14.47 million in April 2021 to 22.6 million in December 2022, and surpassing 30 million in December 2023. The completion of the Mass Rapid Transit (MRT) Putrajaya Line in March 2023 boosted usage further, with monthly ridership across Prasarana’s network in the Klang Valley, Penang and Kuantan reaching 35.5 million in December 2024. In July last year, 38.3 million passengers used the network — the highest monthly figure in five years.
One way the government has committed to improving public transport services is by ensuring that Prasarana maintains a fleet of buses and vans in top condition to serve the public. The government has allocated RM1.9 billion in 2025 to replace and expand Prasarana’s fleet of buses and vans, strengthening first- and last-mile connectivity in the Klang Valley and Penang. The funding covers 1,660 new buses, comprising 310 diesel and 1,350 electric, to replace ageing vehicles. All diesel units have been delivered.
In 2025, the government allocated RM200 million for the My50 programme without any cap, meaning that even after the budget is fully used, additional riders can still subscribe. Demand exceeded expectations, creating an RM84 million shortfall that Prasarana absorbed in 2025. When the unlimited travel passes My50 and My100 were introduced in 2018, Prasarana operated two LRT lines, one MRT line, the KL Monorail and Rapid buses in the Klang Valley, Penang and Kuantan. The My100 pass originally allowed passengers to access all Prasarana services, whereas the My50 pass was limited to the bus system, excluding the Sunway Bus Rapid Transit (BRT). At that time, there was only one MRT line. In January 2022, the programme was reorganised into a single My50 pass, offering unlimited travel on all Prasarana-operated services except the DRT. Prasarana now also operates the MRT Putrajaya Line, completed in March 2023.
Reducing car dependency in the Klang Valley will require a radical shift in how transportation is perceived. Without broader changes in policy and public attitudes, Prasarana’s deficits are likely to continue to grow, unless we restructure Prasarana with an asset company owned by the Government and an operating company owned by an experienced private sector operator.
So, is boosting ridership the key to reducing deficit? That’s only part of the answer. It is cost, business model, revenue enhancements (including dynamic pricing) and others.
Reference:
Boosting ridership key to reducing Prasarana’s deficit, Kamarul Azhar, The Edge Malaysia, 10 March 2026







