Let’s have a bigger regulatory focus on shelters for rent

WHILE the Land Public Transport Commission had drawn up plans to regulate ride-hailing services with proposed amendments to relevant laws to be tabled in Parliament next month, there has been no announcement on private shelters rented out for a fee.

Local authorities must wake up from their slumber as other countries in the region are much more proactive in dealing with the sharing economy.

The Singapore government, for example, was among the first to embrace it and state investor Temasek Holdings has invested in Grab.

The city state is also hosting the Asian headquarters for Uber and Airbnb.

But Singapore authorities could see that such services are disruptive and could deteriorate if given a freehand. It has taken measures to keep them in line.

All Singaporean Uber and Grab drivers are required to obtain a vocational license. Those without it may be fined or jailed.

In Malaysia, all ride-hailing drivers will also be required to obtain a vocational licence after they are regulated from next month.

In South Korea and Japan, authorities have limited Uber’s operations, while its service in Taiwan was suspended.

In Singapore, officials have the right to force their way into homes to check whether residents are renting their premises illegally, as local laws do not allow private properties to be rented out for less than six months.

In Malaysia, no enforcement agency has stepped forward to take the lead in addressing a potential time bomb.

Needless to say, there will be plenty of finger pointing should many guests perish in a fire at one of the shelters booked through Airbnb.

Uber and Airbnb are facing increasing scrutiny by regulators globally and these new economy businesses are throwing up unprecedented growth challenges.

The sharing economy business is headed for explosive growth from around USD$15 billion last year to an estimated USD$335 billion by 2025.

Our regulators should not be caught flat-footed while licensed hotel operators are pulling their hairs out over Airbnb.

CY MING Ampang