SPAD: Higher taxi fares mean better service too

Taxi rates have officially increased as of today but the question on every passenger’s mind is if service will improve with the increase.

PETALING JAYA: Taxi fares have been increased effective today with budget taxis in the Klang Valley to charge 25 sen for every 200 metres travelled. So while Malaysians cough up more cash for a taxi ride, it still remains doubtful whether the service that the taxi drivers extend will improve.

The Land Public Transport Commission (SPAD), however, says the new fares will encourage taxi drivers to provide better service and make them more willing to ferry passengers during peak hours when traffic congestion was at its worst.

“(Before the fare hike)… taxi drivers (dealt) with the situation by not driving during peak hours,” said SPAD chief executive Mohd Nur Ismal Kamal.

“This is an example of how they operate within an environment where economic fundamentals are not appropriately addressed, with behaviour that also includes choosing passengers and destinations.”

There are more than 60,000 taxi drivers in peninsular Malaysia, and the last taxi fare review was carried out in 2009. According to a 2013 survey, the estimated revenue in this sector was about RM960 million.

SPAD said the “time charge” component would be substantially tweaked to compensate the driver for “opportunity cost of travelling in congestion”.

According to a SPAD fact sheet, flag-down rates for budget taxis nationwide will remain the same at RM3, but with revised rates for distance and time, The Star Online reported.

The Teks1m cabs will see new flag-down rates upped to RM4, with 30 sen to be charged per 200m.

Apart from taxis, express bus fares will increase from 9.3 sen per km to 11.4 sen per km from April 1.

According to SPAD’s fact sheet, this will mean a ticket to Ipoh from KL will cost RM25.30 instead of RM20.60 previously.

In a media briefing yesterday, Mohd Nur said SPAD was in a tight spot trying to juggle sustainability, accessibility and affordability issues all at once.

Industry observers noted that public transport infrastructure had seen a steady deterioration over the last 10 years, although there were surges of improvement in urban rail services such as the KTM Komuter.

“No doubt, in the last four to five years or so, the Government injected a lot of funds into it, especially into rail,” said Mohd Nur.

He listed several efforts in infrastructure and capacity building in order to arrest the decay in asset quality and the deterioration of service standards.

“For example, a few years ago, delays of up to two hours on KTM Komuter were not uncommon. We managed to put a stop (to delays) by adding more trains.

“Recently, the Government had to inject some RM400 million to RM500 million just to keep some stage coaches running,” he added.

Referring to the many 20-year-old buses still in operation in comparison to the oversupply in taxis, he summed it up, saying, “In an environment of low fares, this is a recipe for disaster.”