Cost-benefit Analysis for Escrow Deposits in Private Hire Car and Taxi Rental Industry

Mr Chua Kheng Wee Louis asked the Acting Minister for Transport (a) whether the Government has considered having private hire car and taxi rental companies place rental deposits in escrow; (b) if so, what are the assess costs and benefits from such a measure; and (c) if not, why not.

Mr Jeffrey Siow: Imposing escrow arrangements would result in increased costs, as taxi or private hire car companies would require additional working capital for their operations. These costs would likely be passed on to hirers through higher rental rates, and to passengers of point-to-point transport services through increased fares.