Travellers from Singapore Driving Revenue Growth

Pandemic levels. For this financial year, passengers departing from Singapore are expected to contribute almost 49 per cent of HI Mobility's revenue, according to its IPO prospectus.

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Revenue from the intra-city segment also jumped from RM19.6 million in FY2022 to RM65.9 million in FY2024. Many of such government-contracted intra-city bus services in Johor, Melaka and the Klang Valley are now run under a gross-cost contracting model, where the company receives a fixed fee for providing punctual, reliable services without bearing revenue risks. Mr Lim Chern Chuen said this arrangement has helped improve the company's profit margins.

OPPORTUNITIES AND RISKS Mr Lim Chern Chuen said that while workers who commute daily across the border remain a key segment, the revenue growth in recent years has also been driven by more recreational travellers from Singapore taking advantage of the favourable exchange rate to shop and enjoy services in Johor. The introduction of QR code immigration clearance also eased bottlenecks at the border, which encouraged more people to make day trips, he added.

He believes that when more businesses move to the Johor Singapore Special Economic Zone in the future, another substantial customer segment will be unlocked - business travellers who have to shuttle between their offices on both sides regularly.