'In this industry, extensions are common, and we are confident in the continuity of this programme,' says HI Mobility Bhd chief executive officer Lim Chern Chuen. (Photo by Zahid Izzani/The Edge)
KUALA LUMPUR (March 28): Newly listed bus operator HI Mobility Bhd (KL:HI) said on Friday that it is optimistic of securing an extension of its free bus service contract in Johor.
HI Mobility is actively engaging the Johor government on the "Bas Muafakat Johor" programme set to expire at the end of this month, its chief executive officer Lim Chern Chuen told reporters following the company’s listing on the Main Market. The process will take some time, he noted.
“Typically, in this industry, extensions are common, and we are confident in the continuity of this programme,” he said.
The company is mostly known for operating the Causeway Link brand that provides cross-border services between Johor and Singapore, as well as intra-city bus service within Johor Bahru. HI Mobility currently operates a fleet of 683 buses.
Revenue from contracted services and other provisions to government agencies and corporate clients, including the Bus Muafakat programme, contributes more than a quarter of HI Mobility’s total revenue.
WATCH: HI Mobility upbeat on Johor contract extension
The composition of new and existing buses for the programme, however, has not been a focal point of negotiations, Lim said. “In this particular case, a tender has been raised, and we are in the process of receiving feedback on it,” he said.
Most of HI Mobility’s revenue comes from ticket sales. The company has no immediate plans to revise its pricing strategy despite the cost pressures, Lim noted.
"Our prices at the current level can increase our market share,” Lim said. “So, that's an indication to us that it's something that people find acceptable.”
HI Mobility has placed an order for an additional 55 new buses, 10 of which are electric. Demand growth for its services is expected to stay robust, with the number of users rising by at least 20%-30% within the next five years, he added.
For the financial year ended Jan 31, 2025 (FY2025), HI Mobility recorded a profit after tax of RM43.8 million, marking a 31% increase from FY2024. Revenue surged 22% to RM77.9 million.
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