Gojek gets green light for Malaysia test runs despite backlash
- The six-month, proof-of-concept pilot programme will allow the government and participating firms to gather data and evaluate demand
- Critics have accused the Malaysian government of relying on ride-hailing services as a substitute for comprehensive infrastructure planning
Gojek’s backers include Alphabet’s Google and Chinese tech companies Tencent and JD.com. Both Gojek and Dego Ride will start operating based on a proof-of-concept basis to measure demand for the service over six months, Anthony Loke Siew Fook said.
“Bike hailing will be an important component in providing a comprehensive public transport system, as a mode for first- and last-mile connectivity,” Loke told parliament.
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The pilot project would be limited to the Klang Valley, Malaysia’s most developed region and where the capital Kuala Lumpur is located, although the government would consider expanding it to other areas if there is sufficient demand.
The six-month, proof-of-concept pilot programme will allow the government and participating firms to gather data and evaluate demand, while the government worked on drafting legislation to govern bike-hailing, Loke said.
Bike hailing will be an important component in providing a comprehensive public transport system
Youth and Sports Minister Syed Saddiq Syed Abdul Rahman in August laid out the benefits of allowing Gojek to operate in Malaysia, emphasising the job opportunities and increased support for small businesses.
The backlash was swift, though, as critics accused the Malaysian government of relying on ride-hailing services as a substitute for comprehensive infrastructure spending, particularly on public transport. They also took aim at the claims of employment opportunities, noting ride-hailing jobs are labour-intensive with little security or benefits.
Equally, Malaysia’s roads are notoriously dangerous for motorcyclists, who accounted for more than 65 per cent of traffic deaths last year.
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Gojek did not immediately respond to a request for comment but its co-chief executive, Andre Soelistyo, told reporters on Saturday the company was preparing expansion into Malaysia and the Philippines.
“It is our dream for the next year. The services that we have in Indonesia can be opened in other countries quickly. We leave [it] to the leader of the countries to choose,” Soelistyo said.
In March, Philippines regulators upheld a decision to refuse Gojek a licence due to its failure to meet local ownership criteria but Soelistyo said they would build the business on their payment system already set up in the country.
Malaysian watchdog moves forward with probe into Singapore’s Grab
Grab, which is backed by Japan’s SoftBank, has struggled to adapt to new regulations requiring all ride-hailing drivers to apply for specific licences, permits and insurance, and have their vehicles and health checked.
Grab Malaysia said in October that only 52 per cent of its driver-partners were licensed under the regulations that took effect the same month.
“Bring it on! It is indeed healthy competition,” Grab Malaysia said on Twitter after the minister’s announcement.
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