Applying for an L license? 50% of driving institutes in Malaysia won't survive past 2021

E-hailing drivers are getting cash handouts from the government, while the Ministry of Transport (MOT) has designed a fast-track vaccination programme for public transport drivers to go back to work. But what help is offered to the driving instructors? The simple answer is nothing.

Driving instructors and driving institutes are very much like the forgotten entities in the automotive industry. Unfortunately for them, there is no way for the institutes to combat the lockdown the way car dealers can by turning to online virtual showrooms to at least keep the business going.

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So, much like many car sales advisors (SA), driving instructors and institute staff find themselves needing to wait in line at soup kitchens or needing the help of food banks to survive the pandemic. 

In an exclusive interview with WapCar, President of the Malaysian Driving Institute Association (PIMA), Mr Mat Aris Bakar, revealed to us that driving institutes are currently in dire states.

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From what we understand all 215 driving institutes under the association (there were 233 back in February) have already run out of money to pay their staff since July.

Other than that, funds to maintain the institutes’ fleet of vehicles are also running short. According to Mr Aris, maintaining an institute can cost anywhere from RM 150,000 for a small institute to RM 350,000 a month for larger institutes that have a fleet of about 200 vehicles.

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The Movement Control Order (MCO) 3.0 implemented in June is the third time driving institutes were ordered to close within the span of two years. The first time they were ordered to close was when the first MCO was implemented in March 2020, and then again earlier this year.

Fortunately, they were allowed to reopen during MCO 2.0 when Mr Aris’ appeal to the authorities back in February were heard. But the third MCO has had them closing their doors once again and it has been two months since any driving institute have been allowed to operate.

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“Driving institutes have proven during the Recovery MCO (RMCO) last year and again after the second MCO that we are able to operate without issue. Until today there has been no record of a cluster triggered in a driving institute,” he pointed out.

He highlighted to us that those wishing to get a Goods Driving Licence (GDL) to operate small trucks and vans do not even need to go through any physical learning, everything can be done online. Meanwhile, it is easy to practice social distancing for those learning to ride a motorcycle.

He also revealed that he has been recently informed that almost 50 percent of driving institutes are in danger of closing permanently if the lockdown continues. This has spurred his efforts to contact MOT, the Road Transport Department (JPJ), and the National Security Council (MKN) yet again to allow them to reopen.

But the association understands that the Covid-19 pandemic is still an ongoing issue, so Aris and his team has come up with a proposal that would reduce the possibility of triggering a cluster at a driving institute but at the same time keep the economy running.

He suggests allowing driving academies to reopen in stages. The first step would limit opening to only those who wish to get their GDLs and Public Service Vehicle (PSV) licences. This is because as the country’s lifestyle move toward online shopping, P-hailing riders and commercial vehicle drivers are now in high demand.

But with driving institutes closed, those who have lost their jobs during the lockdown are unable to sign up as drivers as they do not hold a GDL or a PSV. GDL is for operating cargo carrying commercial vehicles while PSV is for passenger-carrying commercial vehicles such as taxis and e-hailing cars.

Meanwhile, some youngsters would like to relieve their family’s burden but are unable to find jobs due to the lockdown, the easiest answer was supposedly signing up as a P-hailing rider. But unfortunately for them, they do not possess a licence so are unqualified to do so. 

“I understand that currently Port Klang is suffering from a huge worker shortage after restrictions were placed on foreign workers during the lockdown. But unfortunately, not many jobless Malaysians can apply for the jobs as they do not possess the appropriate licences.”

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He also revealed that the driving institutes are more than ready to go fully online. The association has invested in a system that allows theory classes and even exams to be held online, this would reduce the need to physically meet as much as possible. He highlighted that the system is ready to go and neither JPJ nor MOT needs to invest a single cent in that. 

Mr Aris believes that this could be a good compromise for states that are under Phase 2 of the National Recovery Plan (NRP).

He also claimed that driving institutes are more than happy to follow the standard operating procedures (SOP) like sanitising the cars frequently. As of mid-July, he was informed that more than 80 percent of driving institute staff have been fully vaccinated, hence his push to reopen.

But there is another worry looming for driving institutes as well. To be qualified as a driving instructor, individuals must go for a specific study course held only at certain times of the year and hold a specific licence.

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With more and more instructors turning to other jobs to survive, PIMA is worried that there would be a shortage of instructors when it comes time to reopen.

“If the government is allowing states in Phase 2 of the NRP to open for dine-in and considering opening borders for interstate travels, I don’t see why we have to remain close.”