Open tenders could have led to monopoly, says Asia Mobiliti on Selangor DRT project

Company received criticism when it was discovered that its co-founder and CEO is Youth and Sports Minister Hannah Yeoh’s husband

3:19 PM MYT

 

KUALA LUMPUR – Asia Mobiliti has claimed that an open tender process for Selangor Mobility’s Demand Responsive Transit (DRT) project would have resulted in a monopoly.

According to Asia Mobiliti’s board of directors, only two companies in Malaysia are qualified to provide these services. They argue that appointing Asia Mobiliti provided the best value for Selangor’s investment.

“An open tender in this situation of a highly specialised new service, and with only two qualified companies in Malaysia, would have created a monopoly situation in the state,” it said in a statement today.

“This would have stifled competitiveness and robbed the opportunity for the state to pilot the service in a real-world setting and assess the performance of the service providers over a reasonable period of time.” 

The Demand Responsive Transit (DRT) system is a shared transportation service that groups passengers based on their locations and sends vehicles accordingly. This system can adjust routes on-demand, unlike traditional services that follow fixed routes and schedules.

Last week, Asia Mobiliti was scrutinised over its appointment after it was learned that its co-founder and chief executive, Ramachandran Muniandy, is the husband of Youth and Sports Minister Hannah Yeoh.

On X, a user named @RakyatAduan asked Yeoh for clarification on Asia Mobiliti’s appointment for the project, asking, “Was there an open tender? On what merit was the company selected?” 

Asia Mobiliti pointed out that the appointment was for nine months and required investment from both service providers for vehicle procurement and hiring, as well as the technology’s continuous optimisation and development.

The firm also said it viewed the accusations seriously and will take legal action on the claims to safeguard its reputation and credibility, while viewing the incident as an “unsubstantiated attack” against a local startup in the technology field.

“Being a highly transparent and ethical business, which is an extension of the personal values of our co-founders, we abhor collusion and anti-competitive practices by any party – especially government agencies and (corporations).”

Selangor’s Investment, Trade, and Mobility exco Ng Sze Han said the Land Public Transport Agency (Apad) approved Asia Mobiliti as one of the operators for Selangor Mobility’s DRT pilot project on December 20, 2022.

Earlier today, Malaysian Anti-Corruption Commission chief, Tan Sri Azam Baki, also said the agency had no issue with the appointment. – May 27, 2024

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