KUALA LUMPUR – Food and parcel delivery services in the country will be regulated by the Road Transport Department (RTD) from January 1 next year.
While the government had been preparing to implement this since the Pakatan Harapan administration two years ago, there are concerns as RTD has yet to sort out its own digital onboarding.
Another cause for confusion is the absence of related ministries, such as the Domestic Trade and Consumer Affairs, Health, and Communications and Multimedia Ministries, in the conversation on industry regulations.
Deputy Transport Minister Hasbi Habibollah told the Dewan Rakyat on August 19 that his ministry was preparing legislation for parcel delivery, or p-hailing, services using motorcycles.
“P-hailing will differ from e-hailing services. The service will be licensed according to provisions under the Land Public Transport Act 2010 and Commercial Vehicle Licensing Board Act 1987, in addition to the Road Transport Act 1987.”
A ride-hailing sector insider said: “So, food and parcel delivery regulated by RTD? This is going to be chaotic.
“They will fail and then give the project to the likes of MyEG (Services Bhd) to implement.”
It is learnt that the nucleus behind the government’s decision to regulate delivery services is safety, with delivery charges set to remain unregulated to ensure competition.
Land Public Transport Agency (APAD) director-general Azlan Shah Al Bakri confirmed to The Vibes that the Transport Ministry has started discussions at the working stage.
However, he said, “the ministry is looking at it, but it’s not like we will implement it tomorrow. Just like in the case with e-hailing previously, it took us a year before it came into force. It will be done, but I wouldn’t want to put a timeline on it”.
When contacted, Hasbi said he does not have full details on the matter, and that it is best that any statements pertaining to it be obtained from Transport Minister Datuk Seri Wee Ka Siong.
“I don’t dare say too much. I think whatever confirmation must be from the minister. I don’t want to supersede him.”
Wee, who is believed to be recovering from a medical procedure, has not been reachable.
According to a source familiar with the matter, the idea of regulating delivery services was first mooted by the Malaysian Institute of Road Safety Research (Miros), which cited grave safety concerns involving delivery riders.
A study it conducted during the movement control order period found that 82% of these riders did not comply with traffic rules, with a report on its findings later submitted to Wee.
“Miros raised its concerns, based on this observational study, about the discipline of our riders, and have highlighted several loopholes to the ministry,” he had said.
Meanwhile, several companies offering delivery services confirmed to The Vibes that they were recently invited to a meeting with APAD to discuss the commission rate and temporary licensing for deliveries via cars.
Contention over roles of APAD, RTD
A spokesman for one of the companies slammed the government’s plan to regulate the delivery industry, saying it is nothing more than an attempt to make more revenue.
“APAD is supposed to be in charge of public transportation, but we are not transporting humans, only food and goods. So, how is it that suddenly, delivery falls under them?
“Let’s face it, if they wanted to regulate, they could have started it a long time ago. So why suddenly? It is because of money?”
Another matter of contention is that APAD’s enforcement authority has been passed to RTD.
It is believed that with APAD’s involvement, 20% of revenue from delivery charges will go to the authority.
“You know what is going to happen? RTD and APAD will not be able to handle it, so they will outsource the registration and monitoring to a third party that will be making money off these riders,” said another e-hailing executive.
“APAD cannot be the authority. This is not land public transport.
“But at the same time, if police and RTD are to be the regulatory authorities, you will end up having late deliveries due to random roadblocks and spot checks.”
Hasbi has said there are 200,000 drivers registered with 45 e-hailing companies since 2018.
An industry insider said if the implementation is not done properly, there could be up to a 40% drop in riders.
“This pandemic has created new challenges in the job market. Here, we are providing a livelihood, and certain quarters want to make it difficult for these people to earn a living,” he said, adding that the number of safety incidents involving food delivery riders is negligible. – The Vibes, November 20, 2020
