The local Taxi Association (Gabungan Persatuan dan Syarikat Syarikat Teksi Semenanjung Malaysia) has made an appeal to the Malaysian Government for financial aid. The association, appealing for some 100 taxi companies, seeks to look out for the wellbeing of taxi drivers and operators, especially during the Covid-19 outbreak. Since March, it is reported that earnings for taxi operators have dropped as much as 90 percent.
Two main causes for the drastic drop in earnings are the pandemic and MCO (Movement Control Order). Therefore, taxi operators continue to struggle to make ends meet. The association is proposing three possible financial relief solutions during the MCO for the operators: waive taxi rentals, deferred taxi rentals and/or discounted taxi rentals.
With the implementation proceeding, taxi operators are urged to meet and discuss with their respective taxi company representatives to determine which options are open to them. The association, meanwhile, will do their best to support the livelihood of the registered members. The good news is there will be no repossession of taxis during the MCO period. For non-members, the association urges them to take up the suggested industrial practices outlined above.
The association is seeking financial aid or Government’s assistance in form of; zero or minimum tax rate to taxi companies for 2020, additional cash subsidies for taxi operators, and the aid to be opened to all operators, regardless of paid-up capital.
The third proposed financial aid is to assist some taxi operators who are unable to keep afloat if the situation prolongs for more than two months. As of April and next few months, the association has predicted that there're almost zero or minimal revenue for drivers and operators.