Taxi and private-hire car drivers facing income drops are looking to call it quits in the ‘new normal’

taxi driver waiting for passenger

Earlier this month, the latest quarterly labour market data revealed that Singapore residents’ employment situation is recovering. But according to National Trades Union Congress secretary-general Ng Chee Meng, the general health situation will be a significant factor in determining how the economy will recover from its dip this year.

For some taxi and private-hire car drivers facing massive income drops, it might be too long a wait. There is no doubt that Singapore has come a long way in battling the virus. While we’ve made notable progress is the reopening of the economy, many livelihoods are still affected.

More than 50 per cent reduction in income
ComfortDelGro taxi driver Kirsty Foo

Image Credits: todayonline.com

Kirsty Foo, a ComfortDelGro taxi driver who relies mainly on street hails and regular customers, is one who’s feeling the pinch. The 60-year-old lady who used to take home about S$3,000 before COVID-19 is only earning about S$1,000 after deducting rent, petrol, and parking charges.

Others are turning to alternative platforms to add to their lost income.

Gojek driver Mr Soon had to take up delivery work and temporary night shifts at Pizza Hut during the circuit breaker period because his then income could not even cover his vehicle rental. The 50-year-old shared that he was only earning a base rate of S$4 an hour at Pizza Hut.

Though Mr Soon’s earnings have improved to S$2,000 now and he has stopped working at Pizza Hut, one-third of his wages come from additional gigs via Lalamove and Gogovan.

Both Ms Foo and Mr Soon, including many interviewed drivers, are pondering over calling it quits in this ‘new normal’. Considering the long hours, income, and sustainability, it’s not hard to understand why.

Bound by existing taxi or car rental contracts
bound by contract

Image Credits: SBO.sg

But it’s not easy for some since they have to keep to existing taxi or car rental contracts. Although Ms Foo has recently taken a course on e-commerce and is keen to have a go at it, her written agreement with ComfortDelGro ends only in September 2021.

Similarly for Mr Soon, his one-year contract with a partner of Gojek’s rental initiative GoFleet will only end in 2021. Terminating the contract is out of the question since he will have to forfeit a S$1,500 security deposit. There is also an early termination penalty of up to six months of his rental fees. All in all, he could lose over S$15,000 to void the pact.

Phase 3 won’t bring about substantial changes
Singapore taxis in queue

Image Credits: The Business Times

Mr Soon also mentioned that Singapore entering phase 3 will not bring about remarkable improvements to the business. Though he agrees that demand will increase, he adds that as long as all workers continue to work from home and Singapore has no tourists; it will never be the same.

Another driver, Andy, temporarily left Prime Taxi in May considering the cut in his pay. The 38-year-old who has to support his wife, four children, and in-laws, said it made no economic sense for him to continue. Since 90 per cent of his income comes from airport pick-ups and regular business travellers, the closed borders have greatly affected him.

“If the airport is not open, our slice of the cake is only that big,” Andy commented.

Thankfully, Prime Taxi approved the suspension of his five-year contract signed in September 2019 without forfeiting his S$4,000 security deposit. Andy is currently doing deliveries for Lalamove using a rental car which he pays for S$1,400 a month (less than S$50 a day).

Extra hours & lesser revenue forcing drivers to job hop
taxi drivers in Singapore

Image Credits: The Straits Times

Peter Quek, a ComfortDelGro taxi driver, estimates that he will have to work an extra 15 to 20 hours a week to match the amount he earned last year.

His projection of collecting S$55,300 in fares for 2021 is a 30 per cent reduction from the amount made in 2019. This is even after factoring in the S$9,000 Self-Employed Person Income Relief Scheme (SIRS) paid out this year.

The 44-year-old man who had sent out more than 100 job applications this year said, “That’s why I am desperate to get a new job. I am not looking out for another SIRS. I am looking for something more permanent and long term.”

Grab driver William Ong, 48, is also searching for new job opportunities after his monthly income fell from about S$3,500 to S$1,500. He pointed out that there are no surge fares during the usual morning peak hours, but he would still drive a passenger from Serangoon to town in the morning on standard rates.

Drastic changes to incentive schemes
Grab earnings breakdown

Image Credits: Grab

But COVID-19 is not entirely at fault. Many private-hire car drivers highlighted the drastic changes to incentive schemes as factors for a reduced income.

Grab driver Mr Ong said that such bonuses used to make up 45 per cent of his S$4,000 monthly income but have since become insignificant. Another driver on both the Grab and Gojek platforms, Mr Maverick Tsao, revealed that incentives used to form 25% of his earnings in 2019, but is now barely hitting 10 per cent of it.

With all that said, some cabbies are still optimistic about the gradual reopening of the economy. 52-year-old ComfortDelGro taxi driver Frankie Chew remarked, “Singapore is already opening up and people are coming out. The most difficult challenge (during the circuit breaker period) has already passed, so we will definitely be able to pull through.”

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You can buy these cars in Singapore with a budget of only S$80K

Featured cars under S$80K only

Are you thinking of buying a brand new car but don’t quite have a high budget to spare? Yes, we get how some people think that cars fall into the category of wants rather than needs. But if you really think having a car is necessary and have at least S$80K to spare, why not?

But before you make that payment, be completely aware that other than the upfront payment, there are other costs tagged to driving. We’re referring to petrol prices, ERP charges, parking fees, and more. Let’s not forget maintenance fees and car insurance.

If you’ve taken into account the long-term costs, let’s take a look at these five cheapest car types you can buy even with a budget of only S$80K.

#1: Perodua Bezza 1.3 Premium X (A)

Perodua Bezza 1.3 Premium X (A)

First up on our list, we have the Perodua Bezza 1.3 Premium X (A). The lowest recorded price was previously S$54,999 apparently. At the time of writing, it currently costs S$64,999.

The engine is made by Toyota so you will be assured a smooth driving experience. If you often find yourself storing your belongings behind the boot before driving, you will find the roomy boot space a lifesaver.

#2: Perodua Myvi 1.3X (A)

Perodua Myvi 1.3X (A)

Next up, slightly pricier than the Perodua Bezza 1.3 Premium X (A) is also another series launched by Perodua in 2019. The Perodua Myvi 1.3X (A) hatchback costs S$67,999.

Its specs and features are similar to the Bezza. It has a reasonable boot space of 277 litres and a superb fuel consumption figure of around 17km per litre. For those with a little more budget to spare, you can power-up with the Perodua Myvi 1.5 (S$71,999) instead.

#3: Mitsubishi Attrage

Mitsubishi Attrage

The bronze medal goes to the Mitsubishi Attrage. To be exact, the Mitsubishi Attrage 1.2 CVT Style (A) is the model to look out for. It is priced at S$69,999, similar to the Mitsubishi Space Star 1.2 CVT Style (A).

Those who struggle to navigate around tight spaces will find the Mitsubishi Attrage driver-friendly. That’s all thanks to its fabulous turning radius! With an impressive fuel efficiency of 13.5km per litre, it wins first place for being a fuel-efficient car.

#4: Nissan Note 1.2 (A)

Nissan Note 1.2 (A)

Making into our list at fourth position is the Nissan Note 1.2 (A), a hatchback that costs S$74,900 at the time of writing. You may have come across even lower pricing before because the rock-bottom figure recorded was S$67,888.

Anyway, it has a spacious interior so you will be guaranteed comfort during your drive. While its fuel efficiency stands at 19.6km per litre, some drivers have reviewed otherwise. With that said, its Automatic Stop/Start function manages energy efficiently so that’s one bonus point.

#5: Honda Fit 2020 1.3 (A)

Honda Fit 2020 1.3 (A)

As you’ve probably anticipated the price to rise as we go, we have the new Honda Fit 2020 1.3 (A) to end our list of cheapest cars to buy in Singapore. It costs approximately S$77,000, ranging between different dealers.

Looking at the fuel consumption, it’s a pretty good sight at 19.6km per litre. Compared to the Perodua Bezza 1.3 Premium X (A) and Perodua Myvi 1.3X (A), it has one of the highest number of airbags at six. It also offers a keyless engine start.

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GrabCar fined S$10,000 for risking the personal data of over 20,000 drivers and passengers

Grab app

Last year, GrabCar informed the Personal Data Protection Commission (PDPC) that profile data of 5,651 GrabHitch drivers were exposed to the risk of unauthorized access by other GrabHitch drivers through its app.

According to PDPC deputy commissioner Yeong Zee Kin, the cause of the breach was due to an app update on Aug 30, 2019. “The purpose of the update was to address a potential vulnerability discovered within the Grab app,” he said.

Risking the personal data of over 20,000 drivers and passengers

On Sep 10, the PDPC stated that the update risked the personal data of 21,541 drivers and passengers of GrabHitch. This includes profile pictures, names, and vehicle plate numbers.

But GrabCar managed to roll back the app to the previous version within about 40 minutes. They also took other corrective actions.

“Given that the organization’s business involves processing large volumes of personal data on a daily basis, this is a significant cause for concern,” PDPC said.

The technical details & insufficient robust processes

As per the PDPC’s findings, the app’s programming interface URL which allowed drivers to access their data had contained a “userID” portion. Manipulation to that particular portion could possibly allow access to other drivers’ data.

Mr Yeong said GrabCar had insufficient robust processes to manage changes to its IT system. As a result, putting personal data it was processing at risk.

“This was a particularly grave error given that this is the second time the (GrabCar) is making a similar mistake, albeit with respect to a different system,” he added.

Not the first time with a similar mistake in 2019

In 2019, GrabCar was fined S$16,000 after it sent out more than 120,000 marketing emails to customers containing the name and mobile phone number of another customer.

Grab explained that the incident was due to a mismatched database. Thus, each affected customer’s name and phone number was disclosed to one other individual.

The Grab spokesperson then said that to prevent a recurrence, they had immediately put in place more rigorous data validation and checks. This includes new processes that require a third person to perform sanity checks on data. They also promised to mask phone numbers in all their marketing campaigns.

Grab’s response this time around

To prevent this incident from happening again, Grab claims to have introduced more robust processes. This is especially so to their IT environment testing alongside updated governance procedures. They are also working on an architecture review of their legacy application and source codes.

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Public Transport Council: No changes to bus and train fares this year

Bus and MRT train

Last year’s fare review exercise had us pay 7% more for bus and train rides. While SMRT and SBS Transit had applied for the maximum increase of 4.4 per cent, the Public Transport Council (PTC) rejected granting any fare adjustments.

No changes to bus and train fares this year

In view of COVID-19 and its impact on the economy, there will be no changes to public transport fares this year.

“We recognise the exceptional economic circumstances faced by Singaporeans and have decided to keep bus and train fares unchanged to help ease the financial burden on commuters during this challenging period,” said PTC chairman Richard Magnus.

“Our priority will be to safeguard commuters’ interests while ensuring a financially sustainable public transport system that continues to meet the needs of Singaporeans in the years to come,” he adds.

“With this decision, the full fare adjustment quantum will be rolled over to the next FRE (fare review exercise) in 2021,” said the PTC. “In making its decision for 2021 FRE, the council will also continue to balance fare affordability and financial sustainability.”

Impact on public transport operators
SBS Transit

Image Credits: TODAYonline

While commuters like us rejoice over the status quo in fares, transport operators like SBS Transit and SMRT are suffering.

“In its latest financial year, SBS Transit’s train segment reported a loss in tens of millions of dollars,” the council said. “For its latest financial year ended March 2020, SMRT Trains recorded a net loss of around S$20 million after tax.”

“Despite the drastic fall in whole-day ridership by around 75 per cent during the circuit breaker from April to June 2020, public transport operators had continued to run trains and buses largely at pre-COVID frequencies, to help commuters reach their destinations safely and smoothly,” said the PTC.

No adjustments to fares for low-wage workers and people with disabilities

The Ministry for Transport (MOT) also stated separately that it has accepted the PTC’s proposal to not adjust fares for low-wage workers and people with disabilities.

At the moment, low wage workers are enjoying up to 25 per cent off on adult fares. While those with disabilities have their fares pegged to senior citizens and pay S$64 for monthly concession passes.

Deadline to apply for public transport vouchers extended
Top up station

Image Credits: sgCarMart

The public will now also have more time to apply for public transport vouchers at community centres and community clubs. This is because the application will be extended from Oct 31 to Jan 31 next year.

You can use the S$50 voucher to top-up fare cards or buy monthly concession passes. If your monthly household income from all sources per person does not exceed S$1,200, you will be eligible to apply for the voucher.

Low-income households under the ComCare Short-to-Medium-Term Assistance and Long-Term Assistance schemes do not need to apply. They can look forward to receiving redemption letters for the vouchers in the mail.

 

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Malaysian Prime Minister hopes that Singapore and Malaysia would finalize arrangements regarding daily commuting

Singapore-Malaysia border

In a Facebook post on Thursday (Sep 3), Malaysian Prime Minister Muhyiddin Yassin said together with Singapore’s High Commissioner to Malaysia Vanu Gopala Menon, the two discussed the implementation of the Reciprocal Green Lane (RGL) and Periodic Commuting Arrangement (PCA) at the Singapore-Malaysia border, which began from Aug 17.

Both have agreed that the execution of the two schemes have been generally smooth and effective. “We also reaffirmed the commitment to ensure movement of many people across our borders will continue to be done smoothly without ignoring the safety of both countries,” wrote the Malaysian leader.

Hopes for daily commuting of workers
cross border travel

Image Credits: The Straits Times

He added, “I hope Malaysia and Singapore would quickly finalize the standard operating procedures regarding the proposal to allow for daily commuting of workers between both countries, to boost the national economy and help impacted workers.”

“We are determined this will help both Malaysia and Singapore recover our respective economies and… gradually help citizens impacted by the pandemic.”

FAQs on the RGL and PCA
Immigrations

Image Credits: AsiaOne

With so much about COVID-19 reported in the news these days, it’s hard to keep up with the changes in travel advisories. At the time of writing, Singapore and Malaysia currently have two cross-border travel schemes in place – RGL and PCA.

The RGL is for Malaysia and Singapore residents keen to travel for up to 14 days, for essential business and official purposes only. As for the PCA, Singapore and Malaysia citizens or permanent residents who hold long-term immigration passes for business and work purposes in the other country can enter for work.

Here’s a list of frequently asked questions for individuals who are keen to travel between the countries:

#1: Is emergency travel for compassionate reasons, to attend a funeral or visit a sick loved one, allowed?

Singapore’s Minister for Foreign Affairs Vivian Balakrishnan said on Jul 26 that both countries were working on terms to allow people to travel between Singapore and Malaysia on compassionate reasons. Authorities are working out arrangements to make it possible.

#2: Is travel for study or leisure purposes permitted via RGL or PCA?

No, the RGL and PCA are not to facilitate movement for students or tourists across the border. Those seeking to enter Singapore for study can visit the ICA website. As for those looking to enter Malaysia for purposes other than essential business and official travel should contact the Malaysian High Commission in Singapore for more deets.

#3: How can Malaysian citizens/Permanent Residents (PRs) holding a Singapore work permit apply for PCA and when can they return home?

Under the PCA, Malaysia Citizens and PRs with valid Singapore work passes should remain in Singapore for at least 90 days before returning to Malaysia for home leave. Those eligible to apply will need to have the following passes – Employment Pass, EntrePass, Personalised Employment Pass, S Pass, and Work Permit. The pass should be valid for at least 15 days from the date of entry into Singapore.

The entry and exit point between Singapore and Malaysia must be via the land crossings – Woodlands Checkpoint or Tuas Checkpoint.

When they enter Singapore, travellers under this scheme need to serve a Stay-Home Notice (SHN) of at least 7 days and undertake a COVID-19 swab test. The employee must remain in the declared SHN accommodation for at least 7 days from the date of entry into Singapore and test negative for COVID-19, whichever is later. Once the employee has served the SHN and tests negative for COVID-19, the employee can commence work.

Singapore-based companies that wish to apply for the PCA for their employees may submit their applications through CorpPassEmployers may choose a date of entry within a 60-day window of their application. They must submit their applications at least 7 days before their employees enter Singapore.

#4: For Malaysia citizens/PRs who have entered Singapore via PCA, what are some of the health protocols involved?

After clearing immigration, the employees will have to take their personal transport. These include motorbikes, private buses that only ferry Malaysian passengers who are serving SHN, or taxis and private hire cars directly from the immigration checkpoint to the declared SHN accommodation. They should not stop at any other destination along the journey.

Employees should indicate clearly to the driver that they are serving an SHN. The employee should not take public transport or flag down a taxi while serving the SHN.

Those under SHN can only leave their accommodation to head to the designated testing facility for the COVID-19 swab test on the assigned date and appointment time of swabbing, with similar transportation restrictions. 

The employee or the employer will bear the costs of the employee’s accommodation for the SHN and post-arrival COVID-19 swab test in Singapore, subject to prevailing Ministry of Manpower requirements.

#5: For Singapore citizens/PRs holding a Malaysia work permit, how different is the procedure to obtain PCA?

The minimum duration of stay, as well as the entry and exit points, are the same. Those eligible to apply for a PCA must hold a long term visa for business or work purposes in Malaysia.

Employers can apply for PCA for their employees to enter Malaysia via the MyTravelPass online application at least 10 working days before the date of travel. Employers also need to provide a letter of appointment and a copy of the passport during the application.

Meanwhile, as part of the health protocols outlined by Malaysia’s Immigration Department, employees will be subject to a modified Home Surveillance Order (HSO) for 7 days. 

They must also undertake a COVID-19 test via antibody test kits at the end of HSO and will be released from HSO if tested negative. Travellers must also subscribe to the MySejahtera application, developed by the Malaysia government to manage the COVID-19 outbreak and conduct contact tracing across the country.

These travellers may also apply for a waiver for their SHN during the duration of their short-term home leave in Singapore, after spending at least 90 days working in Malaysia.

According to Singapore’s Immigration and Checkpoints Authority (ICA), the intent of the Malaysia-issued PCA passes is to allow Singapore Citizens and PRs to re-enter Malaysia after their home leave, to continue with their business or work. In lieu of SHN, the returnee will undergo a COVID-19 swab test upon arrival at Woodlands Checkpoint or Tuas Checkpoint in Singapore, at their own cost.

#6: How can a Singapore resident apply for RGL to visit Malaysia?

All nationalities who are legal residents in Singapore and need to enter Malaysia for essential business travel and official purposes can apply for RGL. Approval is on a single-entry basis.

Unlike the PCA where employees may only travel via the land crossings, individuals entering the other country via RGL may also travel via air. Hence, Singapore residents may also fly to Malaysia via direct flights and enter through Kuala Lumpur International Airport (KLIA), KLIA2, and Penang International Airport.

The maximum period of stay is 14 days and travellers need to submit and adhere to a controlled itinerary throughout the duration of their visit.

Before departing Singapore for Malaysia, the traveller’s sponsoring enterprise or government agency in Malaysia must apply on behalf of the applicant at least 10 days before the date of travel. The sponsor would also need to provide a traveller certificate to certify that the traveller has tested negative for COVID-19 via a swab test taken within 72 hours before departure.

Documents needed for online application are a copy of the traveller’s passport, letter of invitation, an itinerary for the duration of stay, proof of hotel accommodation as well as health and travel history declaration.

Upon arrival in Malaysia, the traveller will transfer to the accommodation via transport by the sponsor or government agency. The traveller is also required to subscribe to the MySejahtera mobile app and undertake a COVID-19 swab test at the point of entry or 24 hours of arriving in Malaysia.

If tested positive, the traveller will be accorded the necessary medical treatment by the Malaysia government. If tested negative, the traveller may proceed with the controlled itinerary.

#7: Is the process any different for Malaysia residents applying for RGL to enter Singapore?

All legal residents in Malaysia, who need to make single-entry, short-term essential travel to Singapore for business and official purposes, are eligible to apply for the RGL. Similarly, travellers have to take a swab test within 72 hours of departure.

Residents in Malaysia seeking to travel to Singapore for short-term essential business or official travel via the RGL must be hosted by a company or a government agency in Singapore.

The host company can self-sponsor and file the application for a SafeTravel Pass on behalf of the traveller either directly or through a sponsoring government agency. Upon approval, the sponsoring company or government agency will receive a letter by email within three working days.

With this letter, an approved applicant who is a visa-required passport holder may then apply for a visa for travel to Singapore through the usual channels at least four working days before departure. 

If the applicant already has an existing valid visa, the visa suspension will be lifted when the SafeTravel Pass is approved, and the traveller need not apply for a new visa.

For travellers entering Singapore by air, it’s advisable to pre-register and pre-pay for the COVID-19 swab test prior to entry into Singapore. Preregistration and pre-payment can be made at the online portal and travellers should expect to pay around S$300 for the test upon arrival at the airport.

For travellers entering Singapore by land, travellers will make payment via card or PayPal at the testing stations located at Woodlands and Tuas Checkpoint. Travellers should expect to pay around S$200 for the test upon arrival at the land checkpoints.

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