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PETALING JAYA: A think tank has warned Putrajaya today that the proposed regulation for the email sector could be detrimental to consumers.
The Institute for Democracy and Economic Affairs (IDEAS) welcomed the government's decision to regulate rather than ban such services, but the proposed regulation would create significant new costs and barriers for operators and drivers email networks.
This, he said, would result in a significant decline in the number of engines, competition and new business innovation.
"In the end, this will lead to worse consequences for Malaysian consumers, including fewer choices and potentially higher prices," he said in a statement based on a policy paper titled "Online Regulation: Finding good balance ".
In July, the government announced a series of new requirements for the industry, including the need to obtain a public service vehicle license, annual vehicle inspections at Puspakom and registration of drivers at the Land Public Transport Commission. , among others.
According to IDEAS, the negative consequences stemmed largely from the government's "copying" of existing regulations on traditional taxi services.
This would put a heavy burden on the email industry, he said.
He recommended that Putrajaya take a "blank" approach, reforming the regulation of electronic taxi services and traditional taxis to make them more competitive.
"Specifically, the government should ease the burden on drivers, reduce licensing costs, avoid price controls and liberalize the overall supply of drivers."
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