E-hailing services, such as Uber and Grab, will be legalized by year’s end, as the government has allowed the Land Public Transport Commission (SPAD) to regulate them.
The green light was given after SPAD chief executive officer Mohd Azharuddin Mat Sah gave a presentation to overhaul the taxi industry and legalizing Uber and Grab.
At the moment, there are about 77,000 registered taxi drivers throughout the country.
According to the report by The Sun, the Cabinet also agrees that the industry transformation for taxis and e-hailing services benefits the rakyat. The Cabinet was also satisfied with SPAD’s proposal to transform the taxi industry by improving the Teksi 1 Malaysia program, making the budget taxi fleet more efficient and setting up of a special fund for taxi drivers.
“It is apparent that the people want taxi services improved,” according to a high-level source in the Prime Minister’s Department.
The final challenge to get Uber and Grab legalized will happen during a Parliament sitting in November, as changes to the laws are needed that involves relevant government agencies.
Once legalized, it is estimated that there would be roughly 150,000 new individual permit holders, which will consist of Uber, Grab and regular taxi drivers. They will be co-existing in the market.
Despite that, it remains unclear if the public service vehicle (PSV) licence and training will remain with the Road Transport Department (JPJ) or shared with SPAD.
A SPAD spokesman said that full details that was agreed by the Cabinet will be released early next week.
Via: The Sun
