GO-JEK’S entry into the Malaysian market is aimed at benefiting a wider range of people, from unemployed youths to small roadside eateries, and boosting the e-commerce transport and logistics sector in Malaysia, said Youth and Sports Minister Syed Saddiq Abdul Rahman.

According to Syed Saddiq, the success of GrabFood and FoodPanda delivery services have already shown how small businesses could benefit from being listed on e-hailing services.

The entry of Go-Jek, Indonesia’s most valuable logistics start-up company, would help widen the “ecosystem” that could benefit more people.

“Some people say it is not the way to help Malaysia progress,” Syed Saddiq said after delivering the closing speech at a workshop at Akademi Kenegaraan in Kuala Lumpur today.

“They ask why we are suddenly focusing on motorbikes, but the reality is Go-Jek’s ecosystem is big.

“As you can see from GrabFood and FoodPanda, you can now have food delivered from small ‘warung’ or even durians. So a small warung can benefit from being a part of this bigger eco-system by being listed for deliveries, not just big restaurants,” he told reporters

Syed Saddiq’s move to get the cabinet approval in principle on Go-Jek’s entry has been questioned for its focus and why priority was being given to a foreign company.

He reiterated that Go-Jek would not be given any monopoly over the e-hailing ride and logistics sector, and urged Malaysian rival Dego Rides to provide stiff competition.

“Yes, 100% (to Dego Rides). If anything, we must also assist our local industry. As I mentioned, no one should hold a monopoly over this.

“The fact that Dego was pushed aside before this is the biggest reason why we are doing this now.

“We want Dego Rides, Go-Jek, GrabBike and others, to compete at the interest of consumers.

“I heard Dego Rides is very interested and that’s a good sign. I want to ensure the local users will benefit the most,” he said.

Dego Rides, which runs motorcycle-based logistics services, had previously provided motorcycle taxi services but was banned in 2017 for safety reasons.

Since the cabinet’s approval in principal for Go-Jek’s possible expansion to Malaysia, Dego Rides has resumed two-wheel passenger services on its app again.

Syed Saddiq said expanding the e-hailing ride industry was part of improving Malaysia’s capacity for logistics and e-commerce transportation.

This in turn, he added, would be able to draw more investments in the future.

Bringing in Go-Jek and expanding the industry was also aimed at helping young people, he added.

“If you ask young people, they don’t care for partisan politics. They care about: when I get up in the morning, do I have to face traffic jams to get to work?

“If I take public transport, how much will it cost?

“If I have a job, am I being paid fairly?

“Or for youths in rural areas, are they able to find decent jobs?

“In this issue, it’s about young people,” he said. – August 24, 2019.