KUALA LUMPUR: Indonesian ride-hailing Go-Jek is not the best option for Malaysians to commute safely, say industry experts, citing that motorcyclists continue to record a high death rate on the road.
Allowing foreign players, such as Go-Jek, to operate in the country may also hamper local players' efforts to improve e-hailing services, said other experts.
They said Go-Jek's existence in Malaysia would create stiffer competition and pose difficulty in terms of enforcement.
Universiti Putra Malaysia head of vehicle, engineering and mobility, Professor Dr Wong Shaw Voon, said although the proposal from the ride-hailing company had come many times, it might not be a good idea for Malaysia to allow Go-Jek to operate here.
“It is important for us to move forward in making the road a safer place. Motorcyclists continue to record a high death rate with more than 60 per cent, or 4,082 fatalities, on the road last year," Dr Wong told the New Straits Times, quoting the statistics obtained from the police.
He said Malaysia was not a compatible country to operate ride-hailing services as the ratio between cars and motorcycles stood at 50:50, compared with other countries that had more than 90 per cent motorcycles.
“The best for us is to move away from the most dangerous mode of transportation, hopefully to the best and safest public transport, such as railway or bus, which is even safer than cars.”
Dr Wong said many issues with motorcycles might arise, such as helmet size for occupants and restriction to carry loads which might not be convenient.
“The concern is about safety. If we allow them, we may put more people on the dangerous mode of transportation.
“There are many issues and concerns need to be tackled not only about business, but also about the safety of the public,” he said.
Earlier this year, Go-Jek was considering operating in Malaysia and the Philippines, according to co-founder Kevin Aluwi.
It was learnt that Go-Jek was in the midst of getting the Philippine authorities to reconsider its application to operate there.
Transport Minister Loke Siew Fook was quoted in a recent news report that Go-Jek had expressed its interest in entering the Malaysian market, following the latter's visit a month ago.
Loke said he did not foresee any problems in the ride-hailing operating in the country.
“Our country is open to foreign investment. If they (foreigners) want to set up a company here, they are welcome to do so. I heard they are in the process of setting up a company here,” he said.
MyCar founder Mohd Noah Maideen said the e-hailing service sector had become a saturated market, with more than 20 players, including 10 active players, in Malaysia.
“Go-Jek wants to take a portion from us (local players). It does not bring anything. Why should we bring outsiders into Malaysia?”
He said local players should be given chances to improvise their e-hailing services. “For example, MyCar has upgraded its service application in terms of user-interface, algorithms, user-experience and advertisements since we launched the MyCar app in February last year."
E-hailing service provider Diffride chief executive officer Hannah Yong said the government should thoroughly evaluate the Go-Jek’s plan to expand its operation in the country.
“Bringing two-wheel e-hailing services should be thoroughly studied. Currently, we have high accident rates involving motorcycles,” she said.
Former Transport Ministry secretary-general Tan Sri Ramon Navaratnam said Go-Jek could become a transport option for Malaysians.
“However, people have got to learn to be more careful and the enforcement for this ride-hailing service must be good.
“If people are speeding, that is the cause of accident. Then the authority should withdraw their licence,” he said.
Navaratnam said new player coming into the country would be a competition to the existing e-hailing operators as well as the added services to the public.
“Most importantly, good enforcement of the law in terms of driving and riding is needed. In fact, there might be a chance for motorists to be discipline with stricter enforcement for ride-hailing services as well as it provides income and service to the public,” he said.
Navaratnam said not everybody can afford a vehicle and take public transport to commute, especially from some places that are not reachable.
“We have become afraid of the competition, which is the worst thing that can happen to an economy. When we don’t want to compete, we can’t get the best out of us.
“If people undercut (drives/rides too fast), we can bring in the law and the rules as well as the regulations. The rules go wrong, and then enforcements go haywire when corruption comes in and avoid monopoly,” he said.
Go-Jek had also launched its services in Singapore, Vietnam, and Thailand last year.
Google-Temasek in its report noted that ride-hailing services in Southeast Asia are expected to surge to almost SG$30 billion by 2025 from SG$7.7 billion in 2018.