From Roadblocks to Opportunities: Charting a New Course for Malaysia's Taxi Industry

The taxi industry in Malaysia is changing. New policies were recently announced by the administration. They're raising the age limit for taxi drivers and modifying their training. These policies are intended to assist drivers who have been adversely affected by the pandemic.

Yet there's more to think about. We must address the industry's underlying problems. We must establish a balance. We want to assist drivers while also keeping passengers safe and satisfied.

Referring to global practices can be beneficial. Cities such as New York, London, and Abu Dhabi provide insights. Taxis and drivers are subject to strict regulations. They also encourage competition and ethical behavior.

We can learn a lot from them. In Malaysia, we can accomplish the following:

Establish clear guidelines for taxis and drivers: Provide a regulatory framework outlining the standards for taxi companies, drivers, and possibly future fleet operators. This will maintain consistency and ensure that all stakeholders understand their respective roles and responsibilities.

Increase competitiveness by implementing a flexible licensing system: Create a clear and flexible licensing system that allows taxi businesses to compete. Depending on the local context, this could include taxi license auctions, transferrable licenses, or a combination of the two.

Let drivers operate as either independent contractors or employees: Allow drivers to work as independent contractors or as employees of taxi businesses. They will have more control over their employment and financial security as a result of this. Independent contractors, for example, might determine their own schedules and negotiate wages, whereas employees would have job security and benefits.

Establish strict vehicle safety and comfort standards: Put strict age limitations, maintenance regulations, and safety standards in place for taxi cars. Inspections should be undertaken on a regular basis to ensure that all taxis follow these requirements, which will help retain public trust and promote passenger satisfaction.

Give financial assistance for vehicle upgrades: incentivize taxi drivers to modify their vehicles or invest in greener alternatives, such as electric or hybrid taxis. Low-interest loans, tax rebates, and subsidies for acquiring newer, more ecologically friendly vehicles are examples of this. We have done some of this initiative before with BSN as our financial partner and using several government agencies for grants.

To remain competitive, encourage the taxi sector to adopt modern technologies: like e-hailing dispatching systems, digital payment systems, and GPS navigation. This will assist taxi companies and drivers in remaining competitive in the face of shifting consumer preferences and market realities.

These improvements have the potential to make the industry a better place for everyone. They have the potential to help drivers, passengers, and the environment. Of course there are many more potential solutions to be explored but we must ensure a significant level of engagement happens, not only with industry players but other stakeholders too including the public.

A greater emphasis is also being placed on practical driver instruction. It takes the place of a theoretical exam. This modification has both advantages and disadvantages.

On the plus side, it lowers the hurdles to entry for new drivers. Students can study practical skills such as road navigation and customer service. This practical experience is priceless.

But, there are some drawbacks. Drivers may not be aware of crucial traffic laws or local topography. This could result in risky driving and disgruntled passengers.

So, what are our options? We require extensive practical training. Throughout the training, we should put drivers' knowledge to the test. And we must keep track of how this change affects us. In this manner, we can ensure that passengers are safe and satisfied.

As a former SPAD policy director, I've witnessed the evolution of the taxi sector. We can progress towards a brighter future with these new policies. It's a future in which drivers succeed, passengers are content, and the environment is safe. Accept change and propel Malaysia's taxi sector ahead. I am more than happy to help look for solutions and make the industry a better place for everyone.

Wan Agyl