Lack of coordination among governing bodies that monitor the stage bus industry: The stage bus industry is beset by the lack of coordination and cooperation among various governmental agencies that regulate the stage bus operation. From the issuing of licenses to the zoning procedures, the stage bus operator is deluged with a myriad of regulations from these relevant authorities: CVLB, Road Transport Department, the City Hall and Department of Environment. As a result, there is a lack of unified rules governing the stage bus industry for the operators to follow. To make matters worse, some of the measures introduced do not complement each other while some areas of the guidelines are conflicting. The absence of a standardized industry guideline is stifling the progress of the stage bus industry. This factor is a daunting challenge to the bus industry which needs as little interference as possible in order to operate efficiently. The impact of this challenge is expected to be nullified in the medium and long term as the government is expected to establish a one-stop organization as a part of its effort to revamp the stage bus industry in Malaysia.
Poor enforcement of existing policies constraints the industry: The main authority of the stage bus industry, CVLB, lacks adequate resources to carry out enforcement duties. Poor enforcement leads to a growing number of bus companies flouting the rules relating to route structure and specifications. There are bus companies that do not serve the designated routes as often as they should and some even abandon the routes in favour of busier routes serviced by other bus companies. This sort of practice is a violation of the agreements between CVLB, the permit issuer and the bus operators, the permit receiver. However, due to lax enforcement, this practise is quite rampant hurting the legitimate bus companies who tend to abide by the rules. This is a challenge that has to be addressed by the legislators and bus companies to prevent the industry from going disarray. With the expected restructuring measure by the government, the impact of this challenge is expected to be lessened in the medium and long term.
Pilferage and fraud are hurting the stage bus industry: Some of the most common frauds in the industry include fraudulent collection of fares from the passengers. Some drivers have resorted into pocketing fares of passengers without going through the proper collection channels. Even with the machine in place, drivers have come up with various ways to siphon the money out of the machine. The situation is made worse in buses that have conductors issuing the tickets and collecting the bus fares. Conductors would collaborate with the drivers and ticket inspectors to divide the ill-gotten ticket proceeds among themselves. Pilferage continues to undermine the industry despite harsh punishment by the bus companies and also the presence of ticket inspectors at designated bus routes. The problem of pilferage is expected to gradually diminish as bus operators move to centralize the ticketing system by card in the future. Therefore, the impact of this challenge is likely to be low in the future.