Encouraging the younger generation to use public transport can revolutionise the way that citizens commute in the future; hence, municipalities must provide good public transport services to encourage their use. A free bus service was introduced in Penang, Malaysia, to support the sustainable agenda and to provide transport for low-income groups. However, the lack of ridership resulted in the service being far from achieving its target. This study assessed young adults’ perceptions of the current free bus service in Penang to design a strategy to attract them to use the free bus. In this study, six focus group discussions (FGDs) were conducted with young adults aged between 18 and 25 years old studying in three different higher institutions located along the route of the free bus. The data collected were analysed using thematic analysis, in which four areas were identified—free service, reliability, information provision, and attractive service. Finally, this paper provides valuable input on initiatives to further encourage young adults to use the free bus service in Penang.