These Are the New Regulations for E-Hailing Services in Malaysia Starting July 12

E-hailing drivers, take note! Starting tomorrow (July 12), the Ministry of Transport (MoT) will be regulating the e-hailing industry and they will be subject to the same licensing conditions as taxi drivers.

Source: malay mail

In a press conference on Wednesday (July 11), Transport Minister Anthony Loke said that previously they have discussed these new regulations but they have confirmed that it will only come into effect from July 12. He said that these regulations were important as they could level the playing field for taxi and e-hailing drivers. 

Based on surveys and research, the government has decided not to ban e-hailing services as 52% out of 46,000 respondents said that they would choose e-hailing services over taxis. Until today, there are about 200,000 active e-hailing drivers in contrast with the 67,000 taxi drivers in the country. 

Source: malaysiakini

After taking into consideration many complaints from taxi drivers and e-hailing drivers, MoT has decided to impose similar conditions to e-hailing services under the Land Transport Act 2017 and Commercial Vehicle Licensing Board Act 2017.

These conditions for e-hailing companies include:

1. To apply for a license, e-hailing companies will need to register with Companies Commission of Malaysia (SSM) or Malaysia Co-operative Societies Commission (SKM)

2. E-hailing companies must register with the Land Public Transport Commission (SPAD)

3. All vehicle brands can be used for e-hailing services as long as they have a 3-star ASEAN NCAP rating or similar

4. The vehicles will have to undergo periodic inspection at Puspakom at least once a year for registered vehicles that are more than three years old (there will be a RM55 charge for each inspection)

5. Drivers will have to comply with existing Public Service Vehicle (PSV) licence conditions and they will be checked to determine whether they have any criminal background

6. There must be insurance coverage for driver, passenger, vehicle and third-party

7. Drivers will have to take a 6-hour course for RM200 before they can pick up passengers

Source: cnbc

As for passengers or riders, here’s how the new regulations will affect us:

1. A maximum 10% commission can be charged for e-hailing services provided by taxi drivers

2. A maximum of 20% commission can be taken from e-hailing drivers who use their own private vehicles

3. Surge pricing will be fixed at two times the maximum fare amount. Means got cheaper fares ah?

4. Passengers or riders will have to upload photos of their IC or passport to register as users to protect the safety of e-hailing drivers as well

Source: lcct

Loke added that meter inspection for taxis will be reduced to once a year instead of twice a year. He said that MoT is currently looking into complaints that Grab is monopolising the market but has not reached any conclusion yet. There’s also good news for taxi drivers as the government will help them out with grants if they want to join the e-hailing industry or continue being taxi drivers.

All the new regulations will come into effect on July 12, but there will be a one-year moratorium given to drivers and companies to comply with them.

Let’s hope that with these new regulations in place, the e-hailing and taxi industry will continue to flourish!

Also read: “I Don’t Want Civil Servants Lining Up to Greet Me,” Says Transport Minister