Gov't Has No Plans To Regulate E-hailing Fares - Loke

KUALA LUMPUR, Nov 14 (Bernama) -- The government has no intention of regulating e-hailing service fares and the existing policy will be maintained for now, Transport Minister Anthony Loke said.

Loke said that the government does not impose price controls or set floor prices on the rates given to drivers because the matter must take into account the drivers’ overall earnings.

"To me, raising the fare will have implications on the users’ fare... So we need to look at a balance because e-hailing uses a dynamic pricing mechanism, depending on supply and demand.

“The existing policy remains, but we will continue to communicate and hold discussions with e-hailing companies from time to time so that we can find an approach without the government imposing conditions, and see what incentives the e-hailing companies can provide to drivers to increase their income," he said.

Loke said this during oral answer session at the Dewan Rakyat today, in reply to a question from Datuk Larry Soon (PBM-Julau) on the ministry's follow-up action after meeting with several operators of e-hailing companies operating in Malaysia, especially to review the fares that are said to be too low, to the detriment of workers in the gig economy sector.

In response to a supplementary question from Khairil Nizam Khirudin (PN-Jerantut) on reforms for taxi industry players nationwide, Loke said they have been encouraged to participate in the e-hailing system.

Based on the current policies on e-hailing services he said private vehicle and taxi owners are allowed to participate in both the straight and e-hailing service systems.

-- BERNAMA