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Govt Sets Up Public Transportation Trust Fund

KUALA LUMPUR, March 16 (Bernama) - The Cabinet, Wednesday approved the setting up of a Public Transportation Trust Fund with an allocation of RM4.4 billion, the savings the government derived from its reduction of subsidy for fuel prices.

A statement issued by the Prime Minister's Office said the fund would be used to finance projects that would enhance the standard of public transportation, such as:

* improving the system of integration of public transportation among the bus, Light Rail Transit (LRT), monorail and KTM (Keretapi Tanah Melayu) commuter services,

* improving the standard of bus services, particularly in terms of coverage and frequency of services, and

* expanding the networks of the monorail and LRT systems.

After announcing an increase of 30 sen in the prices of petrol, diesel and liquefied petroleum gas (LPG) on Feb 28, the government said the savings from the reduction of its subsidy for fuel prices would be used for development projects, particularly to improve the country's public transportation system.

"In accordance with that, it is hereby announced that the Cabinet today approved the setting up of the Public Transportation Trust Fund, which will be set up with an allocation of RM4.4 billion, the estimated savings from the reduction in the fuel subsidy," the statement said.

It also said that the government was confident the efforts to improve the public transportation system would enhance the services provided and give greater comfort to the users.

"This will indirectly encourage greater use of public transportation," the statement said.

-- BERNAMA