Govt should relax rules for e-hailing and taxi services, says IDEAS

KUALA LUMPUR: The government should relax the regulations for both e-hailing services and traditional taxi services as proposed rules would create significant new costs and barriers, says the Institute for Democracy and Economic Affairs (IDEAS).

In its policy paper titled “E-hailing regulations: Striking the right balance”, it considered the economic impact of e-hailing in Malaysia, for consumers, drivers and the traditional taxi industry.

The paper, released on Wednesday, assessed the impact of the government’s new regulations on the e-hailing market and how the government should develop the regulatory framework going forward in light of these considerations.

“Overall, the paper welcomes the government’s approach of regulating rather than banning e-hailing services. 

“However, the paper warns that the proposed regulations will create significant new costs and barriers both for e-hailing operators and drivers.

“The result will be a significant drop in drivers and less competition and innovation from new firms. 

“Ultimately this will mean worse outcomes for Malaysian consumers, including less choice and potential higher prices,” it said. 

IDEAS said the paper was presented at a roundtable discussion attended by stakeholders from industry and government, including APAD/SPAD chief operating officer Qamar Wan Noor.