PETALING JAYA: More Malaysians are expected to seriously consider listing their cars on sharing platforms, as they face pressure in servicing their hire purchase loans, says Datuk Seri Dr Wee Ka Siong.
The Transport Minister said as more cars sat idle due to people working from home and reduced working hours, the sharing economy could give some relief to those who would benefit from the extra income.
“This is very timely, as we see that the unemployment rate in July 2020 stood at 4.7%, with 745,100 people out of work compared to 3.2% unemployment in January 2020 with 511,700 people out of work, ” he said during the launch of the Trevo Lighthouse Activation Centre on Monday (Sept 14).
The Trevo app by car rental service Socar provides a people-to-people (P2P) sharing marketplace that enables drivers to book a vehicle from car owners who signed up with the service.
Dr Wee said that industry research projected that the P2P car sharing market could potentially achieve a value of $US4bil (RM16.6bil) by 2030, while worldwide membership in car sharing programmes was projected to reach more than 12 million this year from 2.3 million in 2013.
In lauding the Trevo initiative, he said the ministry continued to welcome private businesses to propose proof of concept (POC) research projects in transportation to them, in line with the National Transportation Policy’s (NTP) vision of involving public participation and stakeholder engagement in transportation initiatives.
“A dynamic and thriving transportation ecosystem will be a boon to all Malaysians, and we want all who have the ability and interest to contribute to do what they can for the benefit of all, ” he said.
He also endorsed Trevo’s announcement to launch a RM2mil financial aid fund for the first phase of the POC exercise to get more users on board.
“If we can leverage this private-public partnership to scale up the car-sharing economy in Malaysia, this RM2mil investment could potentially generate more than RM90mil worth of annual income creation for the 10,000 Malaysians who participate in the programme, ” he said.
He added that P2P car sharing might stimulate car sales in view of the 41.1% drop in passenger vehicle sales in the first half of 2020.
“Having the option of car sharing may convince Malaysians to go ahead with their plans to purchase a new car sooner rather than later, ” he said.