LOKE : MOT Has No Plans To Regulate e-Hailing Fares

Transport Minister Anthony Loke has clarified that the government currently has no plans to intervene in the regulation of e-hailing service fares, opting to uphold the existing policy. Loke emphasised that the government refrains from imposing price controls or establishing floor prices for drivers, citing the importance of considering the overall earnings of drivers in this decision-making process.

Addressing concerns about potential implications on user fares, Loke highlighted the need for a balanced approach due to the dynamic pricing mechanism inherent in e-hailing, which depends on factors such as supply and demand. While affirming the continuity of the existing policy, he expressed a commitment to ongoing communication and discussions with e-hailing companies.

The objective is to collaboratively devise an approach without imposing government conditions, with a focus on identifying incentives that e-hailing companies can offer to drivers to enhance their income.

Loke's statements were made during the Dewan Rakyat in response to a question from Datuk Larry Soon regarding the ministry's actions following meetings with various e-hailing operators in Malaysia. According to him, the discussions were primarily aimed to address concerns about fares being perceived as too low which could potentially affect workers in the gig economy sector adversely.

In response to additional questions from Khairil Nizam Khirudin regarding reforms for taxi industry players nationwide, Loke disclosed that there is an encouragement for taxi industry participants to engage in the e-hailing system. He further highlighted that, according to current policies, both private vehicle and taxi owners are permitted to participate in both traditional taxi services and e-hailing systems.

Source: BERNAMA