Singapore's modern transport ecosystem leaves HK standing
Once a symbol of Hong Kong's efficiency, the taxi industry now struggles with outdated practices, an aging workforce and fierce competition from ride-hailing apps like Uber.
The government must collect the political will to balance traditional taxis with modern ride-hailing services. Singapore's experience shows it is possible to transform the industry into a dynamic sector capable of meeting the needs of modern-day commuting.
Taxis are often a visitor's first and second impression of a place: first at the airport, then navigating through the city. Complaints about rude drivers, overcharging and ride refusals only tarnish this impression. What would a visitor think if a Hong Kong taxi driver quoted HK$200 for a HK$60 ride - as in a case reported by a mainland social media influencer last year?
Hong Kong badly needs a modern transport ecosystem that integrates taxis and ride-hailing to show the city is a true hub welcoming the world.
It is estimated around 60 percent of Hong Kong's taxi drivers are aged 60 or older. Other cities like Singapore face similar aging issues.
However, unlike Singapore where a 70-year-old driver might regale passengers with stories of local landmarks in English, Mandarin or other local dialects, many Hong Kong drivers struggle with English, let alone Arabic.
Through training and incentives, Singapore has fostered a generation of multilingual, tech-savvy drivers. It would be desirable if Hong Kong's taxi trade could attract more younger drivers like the Gen Z female cabbie who made headlines recently.
In Singapore, a passenger can easily pay with his Visa card or Grab ride-hailing app, which lets Southeast Asian travelers settle fares in their own currencies.
Here in Hong Kong, taxis remain largely cash-only, creating barriers for visitors. For instance, this author assisted a German couple who were unable to pay a non-English speaking driver when there was nobody to help them late at night.
Some visitors also choose to use their Uber app, which can be settled in their own currencies.
Policymakers should bear in mind that visitors from Europe and other parts of the world may choose to see Hong Kong, Macau and the mainland in one single trip. This is especially true for events such as the ongoing Canton Fair in Guangzhou where buyers source goods, meet clients and travel in the region. Introducing e-payment or cross-border payment options like the Grab app will make Hong Kong more accessible to visitors.
Singapore's success in harmonizing taxis and ride-hailing offers a blueprint for reference.
The country legalized private-hire cars like Grab less than 10 years ago, subjecting them to regulations while allowing taxis to compete on apps. The move substantially reduced the number of taxis but boosted that of private-hire cars.
Strict penalties - fines up to S$3,000 (HK$17,769), imprisonment up to six months or both, plus probable forfeiture of the vehicle - have deterred illegal services.
Indecision will only fuel tension. The crash of urban taxi license values in Hong Kong, for example, from HK$7.25 million in 2015 to HK$2.68 million reflects market uncertainty rather than competition. Singapore's reforms show regulating ride-hailing can foster fair competition and innovation.
The government's launch of premium taxi fleets is a start in the right direction. However, this is only be a part of a modern transport ecosystem.
Transport secretary Mable Chan plans to propose ride-hailing legislation this year. The authority must avoid half-measures.
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