PROP­ERTY SEC­TOR

Firm to jointly de­velop parcels of land near train sta­tions into mixed res­i­den­tial and com­mer­cial units

New Straits Times - - Business -

“Last year, we re­ceived the ap­proval from the gov­ern­ment to de­velop these ar­eas, and the suc­cess of the project will con­trib­ute to KTMB’s prof­itabil­ity.

“It will be a joint ven­ture with de­vel­op­ers and right now, for Bangi, we have re­quested for their pro­pos­als to be sent by next month for eval­u­a­tion,” said Hider, adding that the projects would be done in phases and take four years to complete.

Since its cor­po­rati­sa­tion in 1992, KTMB re­port­edly recorded col­lec­tive losses amount­ing to RM3 bil­lion as of 2015, de­spite var­i­ous attempts to cut costs and in­crease rev­enue.

Cur­rently, 95 per cent of its rev­enue comes from rail busi­ness. It pro­vides freight, in­ter­city, com­muter and high-speed dou­ble-track­ing elec­tric train ser­vices.

KTMB’s in­come from non-rail busi­ness is de­rived from re­tail and ad­ver­tise­ments.

Hider was speak­ing at a press con­fer­ence yes­ter­day af­ter sign­ing a mem­o­ran­dum of un­der­stand­ing (MoU) with Ja­pan’s Seibu Rail­way pres­i­dent Hisashi Wak­abayashi.

He said much could be learnt from Seibu Rail­way as the lat­ter had ex­panded be­yond pub­lic trans­porta­tion ser­vice such as prop­erty de­vel­op­ment, tourism and sports.

He added that the MoU would act as a stepping stone to­wards more col­lab­o­ra­tion be­tween the two rail­way op­er­a­tors.

“Seibu has been very suc­cess­ful in gen­er­at­ing non-fare rev­enue and earn­ing a sta­ble cash flow, this is what we want to learn from them as we have al­ways been de­pen­dent on fare rev­enue.

“Both KTMB and Seibu Rail­way would be util­is­ing the ad­ver­tise­ment space in their trains, with Seibu pro­mot­ing Malaysian tourism and vice versa.

“The MoU also touches on the shar­ing of knowl­edge and fa­cil­i­ties apart from pro­mot­ing the tourism of each coun­try,” said Hider.

Seibu Rail­way has started pro­mot­ing Malaysia through its Malaysia Travel Book­ing Cam­paign at Seibu’s travel of­fice in Ike­bukuro Sta­tion.

Ja­pan Na­tional Tourism Or­gan­i­sa­tion records showed that 390,000 Malaysians visit Ja­pan an­nu­ally, as­sur­ing that KTMB is the best part­ner to ex­pand Seibu Rail­way’s busi­ness in Malaysia.

BER­NAMA PIC

Kere­tapi Tanah Me­layu Bhd pro­cure­ment gen­eral man­ager and act­ing pres­i­dent Mohd Hider Yu­soff (right) ex­chang­ing doc­u­ments with Seibu Rail­way pres­i­dent Hisashi Wak­abayashi af­ter the sign­ing of mem­o­ran­dum of un­der­stand­ing in Kuala Lumpur yes­ter­day.

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