Moves to make taxis more viable fall short, say some operators

Proposed changes welcome, but they may not go far enough to halt sector’s decline

- Kok Yufeng

Proposed regulatory changes to Singapore's point-to-point transport sector have been met with broad support from the industry, but some taxi firms and transport experts said the new measures may not go far enough to halt the decline in the pool of cabs here.

The changes announced on March 5, which are part of an ongoing government review of the sector, include lengthening the statutory lifespan of non-electric taxis from eight to 10 years and removing the requirement for smaller taxi operators to maintain a call booking system.

Several of the changes, announced during the debate on the Ministry of Transport's budget, are aimed at lowering the operating costs of taxis to make them more financially viable, thereby ensuring a steady supply of cabs and street-hailing services here.

The taxi population hit another low in January with a fleet of 13,485 - less than half the 2014 peak of 28,736.

Mr Tommy Tan, chief executive of ComfortDelGro Taxi, Singapore's dominant taxi operator, said the new measures are positive steps towards a more level playing field. "Any cost savings we are able to identify, we will look at passing these benefits on to our cabbies."

Mr Tan said the ability to keep existing taxis on the roads longer will help to reduce the acquisition cost of new vehicles, especially with the high certificate of entitlement (COE) premiums now.

He welcomed the Government's plans to streamline the curriculum for taxi driver licences, noting that it now takes twice as long to obtain one, compared with a private-hire driver licence.

"We hope that the Government can consider further measures to reduce operating costs and lower barriers for drivers wishing to join the (taxi) industry," Mr Tan added.