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Sabah driving institute disagrees on ceiling price

14th June, 2018

KOTA KINABALU: Sabah driving schools’ body does not agree with the newly-minted Transport Minister Anthony Loke’s decision to put a ceiling price on driving licence.

Chairman of Persatuan Pengusaha Institut Memandu Sabah (PPIMS), Willie Sondoh said the minister’s announcement on May 24 on the new ruling, will affect the performance of driving institutes (IM).

It also will cause confusion to future candidates of IM in Sabah, he said in a statement yesterday. According to him, Loke’s statement seems to have shown as if IM in Sabah arbitrarily raised the price fees without any approval from the Road Transport Department (JPJ).

“The current price fees offered by all IM in Sabah are in accordance with the agreement and approval by the Driving Institute Licensing Committee (JKPIM) since 27th August 2014.

“Any such move will cause a big loss to the IM in Sabah. As we know, the business for IM is seasonal. With the drop in price fees and downturn of candidates, IM operators will be affected negatively whereby revenue obtained will not be able to cover fixed costs incurred monthly.

“Example of these costs are monthly loan installments from banks such as long term loans for building construction, IM circuits, land purchase for IM sites and other loans which include hire purchase of IM vehicles.

“If added with other operating costs such as instructors’ salary, maintenance of building, circuit, vehicle and other expenses, it will affect the performance of IM greatly,” Willie added.

IM located far away from the city or in the interior of Sabah will be more affected with the new ceiling price.

For example, IM Ranau located 107.3 km away from JPJ Headquarters in Bundusan, Kota Kinabalu, have to bear transportation costs for each driver licensing business, he pointed out.

Moreover, the population and volume of candidates taking up driving license in IM Ranau is much lower compared to IM located in the city.

“Perhaps the new ceiling price can be implemented in Peninsular Malaysia, but here in Sabah it will only cause a huge loss to all IM operators. Taking into consideration and comparison between peninsula and Sabah, prices of goods in Sabah are much higher.

“For example, Perodua Axia car costs RM2,000 more expensive. Not only that, costs of spare parts for vehicles are also higher in Sabah compared to peninsula.

“In order for IM operators to stay competitive, they are required to meet the criteria and standards of IM credits by JPJ and MIROS. IMs should provide facilities such as the use of computer systems and biometrics, introduction of ISO standards, closed circuit television system (CCTV), circuit upgrades and so on in line with the JPJ standards. All these require an amount of expenses to enable it to be implemented by the IMs,” he said.

PPIMS requests that Loke review and reconsider the current ceiling price for Sabah as it has actually been approved.

PPIMS, which comprises 22 members, have agreed and are in unity to charge the price fees for Class D (Manual) at RM1,350, Class DA (Automatic) at RM1,500 and Class B2 Motorcycle at RM500. This price will be offered by all IM in Sabah effective 1st July 2018.

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