KL Taxi…

by drrafick

1. This is not the first time I am writing about KL taxi services. No need to compare with Singapore. Just compare with Jakarta Taxi and one can appreciate the difference in service professionalism and quality. Syed Hamid Albar of SPAD asks taxi drivers not to politicize the issue of taxi permits in KL. This was in reaction to the meeting between Selangor and Kuala Lumpur Taxi Drivers Associations and Opposition government leaders last week. It is a fact that the deplorable taxi service in KL today is due to poor government policy. The system was created with protectionism and monopoly in mind and clouded with complexities and lack of transparency.
   

2. To drive a cab in KL, one need to be of a good character, have a good knowledge of the roads, a decent financial capacity and a PSV permit. While it is good to have a system in place but a system that not objective does not help anyone. A cab driver told me once that he has to rent a cab from a company as well as renting a permit from a company. After number of years he can own the cab and if he has his own permit, he can continue driving the same cab. The issue is many cannot have permits and those who can have poor condition aged taxis. Some tried to get permits for 9 years from the authorities but failed. However the same failed person gets rent a permit from the cab company. What an irony as a person that says unfits to get a permit is able to drive a cab indirectly.
   

3. It does not make any sense to issue permits to companies. The companies rent them out but do not maintain the vehicles. Some vehicles are so bad but yet they are still on the road. Each cab driver pays about RM45 to the company daily. That’s equivalent to RM 82,125 for 5 years. The taxi cost of buying a cab with financing cost over 5 years is less that RM 40,000. That means the company becomes purely a middle man earning 100% profit over 5 years. Do they maintain the cab at their cost? The answer is no. All maintenance is borne by the drivers. Where the value is added services provided by this cab companies.
   

4. In Singapore, Jakarta and Dubai, the cabs are maintained by companies. The driver rent a fully maintained car. The authorities monitor the documentation. In Malaysia, I see no reason why we cannot flood the markets with permits. No reason for anyone to rent a permit. Those who rent a permit should be given one on annual basis. On the ownership of cabs, the issue lies with enforcement of QC. Companies should not be allowed to rent out cabs without maintaining them. Their trade needs to be regulated.