[SINGAPORE] Robotaxis are already plying the streets of cities in mainland China and the United States, and these robotaxis are expected to become a transport option in Singapore as well. 

But even as consumer trust in the technology grows, consumers from the rest of South-east Asia would likely take their first robotaxi rides in Singapore, because it is unlikely that commercial robotaxi services will become available in the rest of the region anytime soon.

Countries such as Vietnam and Malaysia are already testing autonomous driving options, but analysts think factors such as cost, manpower and infrastructure stand in the way of commercial robotaxi services. 

Timothy Wong, a senior lecturer at the National University of Singapore who researches into transport economics, said labour costs in South-east Asia, excluding Singapore, are low.

A lower cost of labour means less impetus for transport operators to invest in adding autonomous-vehicle options, as it would still be cheaper to have a human driver. 

Grab, the region’s largest ride hailing operator, has made this point before, but nonetheless continues to make investments in autonomous driving as part of its long-term strategy. 

At a recent earnings call, its chief executive Anthony Tan also made the point about labour costs in South-east Asia, excluding Singapore, being significantly lower than in the US. “We believe, therefore, that it will require considerable time for the unit economics to reach parity with human drivers,” he said.

He added that the crossover point for South-east Asia could occur when autonomous vehicles are proven to be safer and cheaper than some of the current modes of transportation. 

Labour costs aside, providing ride-hailing se...