revenue and subsidies

Government control is most easily exercised in two ways. Firstly, by regulation of the actual transport operations. For example, the laws and regulation. Secondly, by financial direction, both operational (revenue and subsidies) and in terms of capital expenditure or investment. secondlyFor example, the budget for transport proposal. Regulation, is somehow an administrative legislation that constitutes or constrain rights and allocates responsibilities. It can be distinguished from primary legislation (by Parliament or elected legislative body) on the one hand and judicial decisions on the other hand.

Moreover, t is basically steps taken to control the workings of a particular area. This can be seen from the implementation of various laws and acts, rules and regulation in the area of transportation. For instance, the Road Transport Act 1987. These regulations exist for so many reasons. Part of the reasons, are firstly, they serve as the basis for operations. Framework is provided for the operations of transport systems. Provision of services is also provided especially in rural areas where demand for the service is low and dispersed.

Such common examples that might be the ignition to the basis are ‘where to drive, what speed to drive, what to use to get to the destination’, and so on. Secondly, control arising monopolies. Since transport enterprises are natural monopolies, the regulations are made to ensure that the monopolies would not exploit their position at the expenses of the public. For example, the control of air rate imposed domestically in the past. Lastly, control the social cost of transport.

This is to ensure the development of the transport industry is in line with the national economic, social and political policies, as when it goes uncontrollable, excessive social costs is to be expected. Such examples related are, the pollution in atmosphere, congestion, accidents, and so on. Government can execute the regulations through firstly, the creation of policies. Policies are created to protect certain interest. For example, the policies that emphasize on Bumiputera participation in any events related, and the introduction of Cabotage Policy, which protects the local market and selective liberalization.

Secondly, through the creation of Regulatory Bodies under the various ministries who will the government conduct of each mode of transport to achieve the national objectives or interest. For example the bodies involved are the ones which go directly under the Ministry of Transport. They are Road Transport Department, Marine Department, Civil Aviation Department and Railway Department. Not just that, the one that goes directly under Ministry of Entrepreneur and Cooperative Development is Commercial Vehicle Licensing Board. Lastly, through government ownership.

This means that government owns and operate the transport operations like MAS, KTMB, MISC. Basically modes of transport can be divided into 3, land, air and sea. Even when such transports can roam freely in the ocean or above the sky, regulations still play the part and are still crucial. For air transportation, the transport operations are regulated internationally, involving the development of safety conducts, technical certification, and government arrangements. More importantly, the regulations emphasize on how air transport should be conducted, involving the airline operations as well.

This regulation is basically implemented through international organizations such as International Civil Aviation Organization and International Air Transport Association. Another mode of free roaming is the sea, whereby in the domestic market, sea transport is regulated in terms of the area of operation allowed. While international route can be served by international operators like MAERSK, MISC, and CSC, the traffic between local ports are served only by domestic operators. This policy has been known as ‘Cabotage’. As mentioned earlier, the regulatory bodies involved, is the Ministry of Transport (MOT).

It is established with the objectives to develop the public and goods transportation services which is seamless, safe and excellent, and also, to implement an efficient enforcement and regulatory function with integrity. The functions of this ministry is planning, formulating, and implementing the rail, maritime, ports and civil aviation transportation policies. Furthermore, to regulate or supervise policy and operation of concession holder or government companies. Then we have the Road Transport Department (RTD) which serves under MOT.

The establishment of RTD goes in-line with the objectives which is firstly, to create and administer traffic laws in order to produce road users with a culture of compliance with road laws and regulations. Secondly, to create and administer a registration and licensing system for all types of motor vehicles which is effective, safe and full of integrity. Lastly, to create and administer an effective training, testing and licensing system in order to produce skilled, disciplined and considerate drivers. As for sea transportation, we have Marine Department Malaysia (MDM) taking charge of our coast and sea lines.

The department goes with the objectives of firstly, to ensure that all officers and crew serving on board Malaysian ships possess the necessary certificates and documents prescribed by the Merchant Shipping Ordinance 1952. Secondly, to ensure that all port and jetty structures under the charge of this department are maintained in good condition and operational at all times. Lastly, maintenance of the shipping channels at all ports under the jurisdiction of this department in order to ensure that they are navigable at all times.

There are certain services provided by MDM for the convenience of all parties related. The Maritime Industrial Control is introduced, which administer the registration of ships in Malaysia, and the licensing of boats. Moreover, MDM takes care of seamen affairs and port division. This is to ensure that all officers and crew serving on board Malaysian ships possess the necessary certificates and documents, and also, providing maintenance of the shipping channels at all ports to ensure that they are navigable at all times.

Last but least of the services is the safety navigation. This is to ensure a regulated, efficient, effective and economical navigational system to enhance safety of navigation and reduce maritime accident in Malaysian waters. The navigation system includes aids to navigation, maritime search and rescue services, maritime safety information, vessels traffic services, along with wreck and salvage. Safety of navigation also includes the ensuring of an effective response to combat oil spill from ship and reduced environmental pollution.

The last mode of transportation would be air, and for this mode, the Department of Civil Aviation (DCA) takes charge. It is established as an organization under the MOT, along with RTD and MDM, to provide efficient and safe air transportation as follows. Various activities are organised by DCA, such as Airworthiness Activities. Such examples that fall under this activity are the registration of civil aircraft, approval of organizations for maintenance aircraft and equipment, and licensing of aircraft maintenance engineers.

Second activity is Air Traffic Services Activities, consisting of provision of maintenance of navigational aids aeronautical and telecommunications, exchange of flight information domestically and internationally, and lastly, establishment and maintenance of Aeronautical. For coordinating on matters pertaining to officers training, seminar locally and abroad, flight schedule approval, and coordinating with international agencies such as ICAO, IATA, and ACI, these activities fall under the Air Transport Activities.

Another minister that plays vital role under the Regulatory Bodies is the Ministry of Entrepreneur and Cooperative Development, and one of the the body that is registered under this ministry is the Commercial Vehicle Licensing Board (CVLB). The core strategies of this body is creating business opportunities by granting commercial vehicle licenses to organization or individuals qualified and interested in this field, as well as providing training and advisory services to commercial vehicle operators through courses and dialogues in order to expand entrepreneurial culture and to improve their understanding of CVLB rules and policies.

Speaking of the scope and functions of CVLB, it is set up to assist the development of commercial transport and industry by establishing policies to ensure a sufficient commercial transport service. Another function is, it is set up to assist the development of commercial transport industry by establishing policies to ensure a sufficient and efficient commercial transport service.