PENANG: The Penang state government wants the federal government to plough the savings from subsidy for petrol and diesel into the development and promotion of the much needed integrated public transportation system.

Chief Minister Tan Sri Dr Koh Tsu Koon said yesterday he had, in the past, appealed and suggested to the federal government to do the same if there was a need for a price increase.

"I have been appealing to the federal government to channel the savings from fuel subsidy towards the development and promotion of an integrated public transportation system, not only for Penang, but other cities as well," he said.

"The government spent RM25 billion last year to subsidise petrol and diesel. A small percentage of this, not even 5% (RM1.2 billion), will pay for a much needed monorail system for Penang."

The state gover nment had come under fire recently from the coalition of NGOs in Penang, called Citizens for Public Transport, who have decided to force the issue of a sustainable and integrated public transportation system for Penang.

"Ploughing the money back into providing an integrated public transportation system is a more rational long-term approach to solve the problem," Koh said.

"It is not tangible to continue to hike fuel prices but not do anything to encourage the shift in the mode of transportation."

On the move by MAS to scrap the direct flights from London to Penang, introduced in October 2003, Koh said much effort had been put into promoting that sector by the state government.

"I regret that MAS has to do this as we are beginning to see the growth of this market," he said.

"I will have to look at the statistics to see how much Penang will be affected by this move.

"Instead of cutting flights, MAS should look at other ways and means to reduce costs and its deficits rather than dropping this route as all our efforts are wasted and we had no chance to see the full impact of the direct flight to Penang."

He said many felt that MAS should emulate AirAsia in trimming its excesses in many areas.

However, he said he did not envy MAS managing director Idris Jala for the task he has to undertake to turn the airline around, adding that he had high regards for Idris' capabilities.