Road Logistics : REWARD FOR LONG TERM GOALS

There is good news for taxi drivers. Not for all of them in Malaysia but for those who operate in Penang. They have recently received cash incentives worth RM 300.00 from the state government. The incentives were conferred by the Chief Minister, Lim Guan Eng to 1,556 taxi drivers of the state in conjunction of Chinese New Year. The chief minister also mentioned that another round of incentives for the amount of RM 300.00 will be given to the taxi drivers for Hari Raya Puasa festival. This is due to their large contribution in the growth of the state’s tourism industry. While incentives are granted by the state government, the Federation of Penang Taxi and Hired Car Drivers’ chairman, Abdul Malek Darus verbalized that the Federal Government will soon announce the new rates for the taxi services in Penang, with indication of 70% to 80% fare hikes from the current rate.

Isn’t that just amazing? At one end, we can be rather proud that something is being done by the relevant government bodies to motivate the taxi drivers with cash incentives worth RM 600.00 and at the same time, a handsome hike in taxi fares will help the taxi drivers to cope up with the elevating cost of living. On the other hand, there are other factors and effects that should be considered when such schemes are introduced. The incentives that were given to 1,556 taxi drivers are deemed as token for appreciation to all taxi drivers. It means that RM 933,600.00 is segregated to those drivers who had worked hard during the festive period and also to those who didn’t. My point is, why not only grant the incentives to those who really deserve the incentives. This is a call for a performance management application whereby, a proper programme is implemented to monitor the performance of the taxi services as well as the drivers and reward them accordingly. This includes the behaviour, cleanliness and other related aspects. With that in place, I strongly believe that the taxi drivers will be motivated and sufficiently competent to ‘grab’ the incentives. And to those cabbies who failed to perform, should not gain any. Therefore, high performing taxi drivers should be rewarded with higher incentives. The balance money allocation should be invested into developing the taxi services as well as training for the drivers such as English courses, self vehicle maintenance courses and much more. On the taxi fare increase, one cannot dispute much as it is necessary for the taxi drivers to sustain the recent increase in fuel prices, prices of spare parts and prices of necessities in their life. However, if at all the speculation of 70% to 80% hike on taxi fare is correct, it will be a real ‘shocking-tsunami-wave’ to consumers. This is because the annual salary increase in Malaysia, be it in the government or private sector, is not increased drastically but gradually every year. So, the taxi fares should also be reviewed carefully and gradually every year instead of waiting for several years before increasing the rates at a ‘frightening’ level. Also another point to note is that, once the taxi fares in Penang are increased, the Federal Government should be prepared to receive urge from taxi drivers of other states for increase in rates too.

By the way, I strongly believe that the old legacy but exhausting and withdrawing transport service in Penang, the trishaw services, is also a large contributor the the state's tourism industry but in need of attention from all parties. What is available in the planning pipeline for these trishaw operators is yet to be made known. 

 

I wish them all the best!

Thank you & have a great week ahead.

Best regards,

Mahinder Singh Malhi