Go for cashless payment system

TMM,Monday, August 22nd, 2011 

PJ: KL, Selangor taxi drivers want govt to address problems (Aug 14) 

Recently, the Taxi Drivers’ Welfare Association disclosed that the seven demands they submitted to the Government have not received any response. 

A popular radio channel also picked up on the issue and discussed their woes in one of their talk-shows. 

Comments were made on the demands but the host failed to realise the drivers concerned are mostly self-employed. 

It is akin to hawkers asking for insurance cover, Socso, EPF, housing and personal loans just because they are paying rental for the stalls. 

Would hirers servicing car loans under the hire-purchase scheme asked for Socso and EPF from the banks? 

Taxi companies merely rent out cabs to drivers and once the instalments are fully paid, the car belongs to the driver who can then choose to continue operating the same vehicle as a taxi by renting only the permit or repeating the cycle. These contracts are on a 'willing seller willing buyer' basis. 

Taxi drivers can try to apply for their own permits and some of the successful applicants may fail to secure a bank loan. They may then use the credit facility provided by taxi companies but at much higher interest rates. 

The association did not mention that the RM19 per day charged for renting the permit includes road tax, third party motor insurance, inspection fees and administration costs. 

Many taxi companies offer several rental-free days over a year as incentives. The caring ones also give out cash awards for children of taxi drivers that have done well in schools. 

To end these woes, education and training would help existing and new taxi drivers. Politicians would be doing them a disservice if they support the preposterous demands. 

Instead, new measures are necessary to transform the taxi industry. For example, the number of permits should be controlled and granted only to deserving taxi companies and drivers. 

Companies that make genuine attempt to discipline their drivers and compensate the passengers should be supported. Permits should be earned and not given freely to drivers. 

Those interested are to be placed in a registry and given the permit after a probationary period, which includes training and monitoring. 

It has been a long-standing practice that anyone with a Public Service Vehicle (PSV) licence may pay a down payment and drive away a taxi. 

The taxi company has no other interest or control over the drivers as long as the instalments are paid on schedule. 

Taxi companies must not remain passive rent-seekers. They should be more in control and accountable of their drivers. 

A portion of the profits from the RM19 charged per day for the permit should be used to educate, train and rehabilitate existing drivers. 

Those who are aggressive or oblivious of their job specs need counselling. 

As taxi service impacts the nation’s productivity and quality of life, the authorities should be more proactive and nurture the industry. 

Ready packages for taxi drivers should be made available to them so they can easily participate in schemes that give them peace of mind such as life insurance, medical cover, personal accident, voluntary EPF contribution, bank loans etc. 

New technology such as cashless payment system can be introduced and taxis fitted with such devices would be the preferred choice of many passengers. 

Successful implementation would require the coordinated effort of the three parties. A taxi company with proven record of expertise in this area will have to work with a cashless machine vendor and supported by Land Public Transport Commission (SPAD). 

About half of the cabbies would be given their own permits and operate their own taxis. 

A cashless payment system is the best way to monitor most of the taxis in the Klang Valley. The drivers would naturally behave for fear that money may not be credited to their account should customers complain. 

They can also agree to have a certain portion automatically deducted in order to participate in a selected scheme such as voluntary EPF. The government can show its caring side here by topping up with a certain portion. 

The mindset of taxi drivers may change when they are no longer left to fend for themselves. 

YS Chan