PETALING JAYA: With no end in sight to the Middle East conflict, the only thing riders can do is plan their daily operations more carefully by optimising their routes so that they travel as little distance as possible to ensure efficient fuel usage.
Gig worker associations are increasingly worried that subsidised RON95 petrol limits could be further reduced, potentially leading to a collapse of the gig industry.
Malaysian E-hailing Coalition (GEM) chief activist Masrizal Mahidin said such a reduction under the Budi Madani (Budi95) initiative across the board could render e-hailing and p-hailing roles unsustainable.
“There will be substantial impact on the industry, with net earnings for both riders and gig companies dropping sharply as operational costs rise.
“So without urgent and decisive government intervention, many workers in this sector may not be able to sustain themselves very long without proper support,” he said.
Masrizal said riders would be left with only basic mitigation strategies to try and survive if the Budi95 subsidy for gig workers was reduced, if the current conflict in the Middle East continues to be unresolved.
“The only thing riders can do is plan their daily operations more carefully by optimising their routes so that they travel as little distance as possible to ensure efficient fuel usage.
“But this is a double-edged sword that limits their ability to work and can lead to shortage of drivers or riders in some areas, which only hurt the industry’s relevance in the long term,” he said.
He further suggested that the government provide demand-side support through targeted subsidies to consumers, which would help sustain demand and prevent a sharp drop in driver earnings.
Malaysian Grab Drivers Association president Mohd Azril Ahmat said there was concern that e-hailing platforms would hesitate to raise fare fees to match any decrease in Budi95 subsidy or rise in fuel prices.
To this, he said the government should begin regulating fare fee adjustments through platforms, either by encouraging or requiring platforms to adjust fares in line with rising operational costs.
However, Mohd Azril said the more worrying concern was the possible rise in work from home arrangements across government and private sectors if overall Budi95 subsidies for everyone were further reduced.
“If the Budi95 limit is either further reduced or fuel price is increased, there is a good chance government and private companies will begin incentivising work from home again.
“This could indirectly cause drivers’ income itself to significantly drop, as there will be less foot traffic everywhere since most will be at home.
“This will make it not only harder to find customers but also for fare fees to be lower as there will be more supply of drivers than there is demand,” he added.
These concerns arose after Prime Minister Datuk Seri Anwar Ibrahim announced on March 26 that the subsidised RON95 petrol initiative would be reduced from 300 litres to 200 litres beginning tomorrow.
And earlier, on March 11, he said the country’s petroleum product supply would be sufficient at least until May.
