A new business opportunity for Malaysia OOH companies

As Covid-19 fades and its threat level decreases, the local economical activities are returning to the norm. The more stringent air passenger traffic had recovered 415.6% year-on-year in Q1 2022 according to a report by Mavcom.

Obviously, the land traffic is also poised to recover in tandem with the reopening.

While being on the road, I noticed an increased number of car wrappings in commercial terms. And upon a quick search, the wrapping activities was actually done by a local company called MYRODEO SDN BHD.

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Apart from traffic recovering, e-hailing services are also becoming more and more common, and I would like to quote from the report by EZDOM.

The global market is expected to grow due to the booming tourism industry, increasing urban population, rising ride-hailing apps penetration, and escalating personal disposable income. Key trends of this market include the emergence of autonomous vehicles, rising demand for new energy vehicles (NEV) in China and growing preference for bike-sharing in the U.S. However, there are some factors which can hinder the market growth including stringent regulation and intense competition.

Global ride-hailing market is projected to grow at a CAGR of 21% to reach USD$136billion by 2023, on the back of the growing popularity of ride-hailing services as well as the service providers such as Uber, Didi and Lyft. Moreover, surging demand for ride hailing services on a global level can be attributed to ease of booking, enhanced passenger comfort, increasing traffic congestion, rising government initiatives aimed at increasing awareness regarding the harmful effects of air pollution levels and development of semiautonomous and autonomous vehicles. Increasing number of partnerships between domestic and international service providers, such as Uber and Didi in China, are also expected to aid the global ride-hailing market during the forecast period.

In Malaysia, the e-hailing industry has empowered working persons, students and even housewives to have an extra source of income and serves as a valuable alternative to consumers.

Ride-hailing has transformed transportation in Malaysia, particularly in our big towns and cities. When only a few years ago, it was a novelty, now ordering a ride on our mobile phones has become the norm.

According to Transport Minister Anthony Loke, the number of trips recorded by ehailing companies has increased from six million a month in 2016 to 18 million trips this year (2020). This growth has been hugely beneficial to consumers looking for convenient and affordable options for getting around. As e-hailing has become increasingly popular, it has also become an important source of employment. Many new drivers have taken the advantage of the e-hailing revolution and many of those are attracted to one of the industries defining features: Its flexibility. These drivers are working part-time on the hours that work for them to earn some extra cash, perhaps as a top-up to a full-time job.

Loke claims that 75% of a total of 200,000 e-hailing drivers in Malaysia are part-time drivers.

According to a report, a stunning 200,000 e-hailing drivers are available in Malaysia, indicating a potential commercial OOH car wrapping market of 200,000 vehicles. This could be a game changer for how OOH market their clients’ products moving forward.

For now, the front-runner would be SENI JAYA CORPORATION BERHAD as they had been working with e-hailers for quite some time now. The wrapping business would be cherry of the top for the company moving forward, which would enhance their earnings moving forward.

It is also important to note that SENI JAYA CORPORATION share price had been consolidating for the longest time. Will this new car wrapping opportunity change the tide for the price movement?