Horrific Gerik crash exposes dark truth behind bus permit leasing
KOTA BARU: Thousands of express and tour buses are operating illegally nationwide using leased permits, a practice that contravenes the Land Public Transport Act 2010, the Bumiputera Express Bus Operators Association of Malaysia (PPBBM) said.
PPBBM chairman Zainal Abidin Mehat said the issue of leasing public transport bus permits has been ongoing for some time. However, it only came to light following the recent fatal crash involving a tour bus carrying students from Sultan Idris Education University (UPSI) along the East–West Highway near Gerik, which claimed 15 lives.
Zainal said some bus operators conduct business without any valid permit by purchasing second-hand buses and operating them under permits obtained from various other companies.
This, he said, is because many bus operators, most of whom are former bus drivers, are unwilling to apply for permits due to the high upfront cost and the numerous procedures required by the Ministry of Tourism, Arts and Culture (MOTAC) or the Land Public Transport Agency (APAD).
"There are even companies that own dozens or hundreds of permits and take advantage by leasing them out, whether for express or tour buses, at a rate of RM500 per month per permit, raking in tens of thousands of ringgit monthly," he said.
Zainal said that the practice of leasing express and tour bus permits has been going on for years.
"I often receive complaints about this issue, but it remains unresolved because there is both supply and demand in the permit leasing market.
"The modus operandi involves bus operators purchasing second-hand buses over 10 years old for between RM70,000 and RM100,000, repainting them to appear new and attractive, and using them as tour or express buses.
"To avoid dealing directly with APAD or MOTAC, they simply lease permits from companies offering such services, paying RM500 a month," he told Berita Harian.
Zainal said that due to high demand, some bus companies that have more than 100 express or tour bus permits lease out nearly all of them.
These companies retain only a few permits for their own use to avoid detection.
"Imagine a company with 100 permits earning RM500 per permit every month, they can easily make tens of thousands of ringgit monthly," he said.
Jega AFP, [13/6/2025 10:58 AM]
He added that many of those leasing permits are former bus drivers who, after saving up some money, venture into bus operations.
"They lack the proper knowledge to become legitimate operators and are only chasing fast money, with little concern for the safety of future passengers.
"If the fatal crash on the Gerik-Jeli road hadn't occurred, this issue might never have been exposed, even though in reality it involves thousands of buses across the country.
"They're also crafty, during APAD enforcement operations, these buses are kept off the road temporarily to avoid detection for operating under permits belonging to other companies.
"That's why sometimes you'll see one company name on the bus body and another on the permit," he said.
He urged the government to take firmer and more drastic action against bus operators using leased permits.
"We welcome the move by the Transport Ministry to revoke the licences of bus companies found to have leased out their permits," he said.
On Monday, fifteen undergraduate students were killed in an accident when the bus they were travelling in rear-ended a multi-purpose vehicle (MPV) along the East–West Highway in Gerik. The bus then flipped onto its left side and came to rest against the metal guardrails.
Transport Minister Anthony Loke said during a press conference on Wednesday that all permits held by the
He said the company had committed two serious offences namely leasing its permits to third parties and failing to install and activate the Global Positioning System (GPS).
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