Speaking to FMT, Wan Agyl Wan Hassan said the proposed reopening of taxi and rental car licence applications to companies would result in a repeat of past problems if it did not come with a revamp.
He said more responsibility should be placed on company-based operators if they were the ones applying for the licences.
The former SPAD group operations head of policy and planning said licences should be issued to both individual drivers and companies.
“This policy direction to reopen taxi and rental car licence applications needs to undergo critical discussions with stakeholders,” he said. “Whether it’s bad or good will depend on how it is reintroduced.
“If the government decides to just reopen the licence application without any policy change, it will be a bad thing because it will be seen as repeating past problems.”
Applications have been frozen since 2016.
Wan Agyl said the main issue with the previous policy was that companies applying for the licences had minimal responsibility to ensure the quality of their service.
“It will allow the rent-seeking element to remain in the industry, with drivers being forced to pay rent for the vehicles no matter the circumstances,” he said, adding that drivers often had little support from taxi companies.
He said Malaysia could learn from the taxi industry in New York or London, noting that cabs were as relevant as ever in those places despite the e-hailing boom.
He attributed this to clear policies laying out the responsibilities of taxi drivers and the companies providing the fleets of cabs.
“We need a new business model, new regulations and new guidelines,” he said. “I would suggest that companies offer an improved model of e-hailing service such as subscription models to maintain customers. This will be beneficial to both drivers and companies.”
However, he said the government should refrain from making rigid policies and should focus on the quality of service and safety while allowing the industry to innovate according to demand.
Last week, transport minister Loke Siew Fook said the government intended to reopen applications for taxi and rental car licences to companies in a bid to improve the quality of public transport services.
Loke said the aim was also to provide employment opportunities to those who couldn’t afford their own vehicles.
Transport consultant Rosli Azad Khan said taxi permits should be given directly to drivers instead of companies. He reasoned that drivers of their own cabs would be more committed to providing good service.
He added that issuing drivers the permits would allow them to participate in e-hailing schemes since e-hailing firms do not provide drivers with vehicles.
“The main challenges facing individual taxi drivers are funding to buy a vehicle and maintenance costs,” he said. “If the government can channel guaranteed funding to them or make banks provide a scheme for taxi purchases, that will be of great help.”
Gabungan Teksi SeMalaysia president Kamarudin Hussain urged the transport ministry to leave the door open to negotiations with industry players to achieve a better outcome.
He said the group welcomed Loke’s announcement, but he added that drivers were struggling to make ends meet because of the various commission rates under different companies.
“What’s the point of companies applying for permits and providing vehicles when there are no drivers? The transport ministry should work to solve problems afflicting both the companies and drivers.”