SPAD to implement Centralised Taxi Service System, review taxi industry and existing licensing policies

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The Land Public Transport Commission (SPAD) has issued a statement detailing the current issues faced by the local taxi industry, along with measures which it aims to implement in order to improve it for the better.

“In reality, the taxi industry in Malaysia is far from being anywhere near perfect. It remains the most fragmented segment of our public transport and is riddled with legacy issues which have been around for the past few decades,” admited SPAD in the press statement.

For a bit of history, SPAD commenced operations in 2011, overseeing all matters related to the taxi industry. One of its first programmes, Teksi Rakyat 1Malaysia (TR1Ma) in 2012, provided 76,000 taxi drivers with vouchers for new tyres, Personal Accident Insurance Coverage (PA), road tax exemption, 50% toll subsidy as well as excise and sales tax exemption for individual licence holders.

SPAD then introduced the Teksi 1Malaysia (TEKS1M) licence class in 2013, with the aim of migrating all existing metered taxis reaching the end of their service life to newer models. This was done to address concerns relating to drivers, vehicle, and operations standards.

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Initially, 1,000 licences were issued, where qualified taxi drivers received a RM5,000 grant, and a low fixed interest rate of 2% per annum to purchase their Proton Exora TEKS1M vehicles. This was expanded to include the Toyota Innova in 2015.

SPAD says that as of today, there are 1,750 TEKS1M vehicles on the road. In order to meet current demands, more economical TEKS1M models will be introduced in the future, including smaller sedans.

The decades-old taxi leasing model or “pajak system” is another area the SPAD wants to improve on, making it not just more transparent, but fair to both drivers and operators. A taxi driver recently revealed that taxi leasing fees can go up to RM1,500 a month.

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With high operating costs, taxi drivers have previously asked for a rise in fares, which SPAD acknowledged to, restructuring the taxi fare structure in March 2015. However, taxi drivers have recently asked for fares to be hiked, only to be turned down by SPAD in October. On the mention of fares, SPAD says that nearly 40% of the total complaints it has received are linked to taxi drivers refusing to use the meter.

The press release also stated that the issue of inadequate taxis during peak hours in Kuala Lumpur and the Klang Valley is a puzzling one. As of current, 65,292 taxis operating in Peninsular Malaysia, where 44,012 are metered taxis which are largely company owned (62%).

From that number, 70% of these taxis are concentrated in Malaysia’s Central Region, with an astonishing 95% of them operating in Kuala Lumpur and the Klang Valley. With such figures, the issue (taxi shortage) should never arise, but somehow it still prevails, according to SPAD.

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The introduction of taxi booking smartphone apps, like MyTeksi, has only resulted in 27% of the existing taxis fleets being able to connect with passengers. To minimise that gap, SPAD will implement the Centralised Taxi Service System (CTSS), to monitor taxi supply distribution and performance.

The system will be integrated with existing booking and dispatch systems. It is hoped that with improved customer-matching and the income gained from it, taxi drivers will be able to provide a better service to the public.

Finally, SPAD will look to make amendments to the Land Public Transport Act 2010. A comprehensive regulatory review of the taxi industry and licensing policies is also part of the exercise, along with improved enforcement programmes. It’s not, however, mention if these amendments will have any relation to ride-sharing services like Uber and GrabCar.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • nabill (Member) on Oct 28, 2015 at 5:14 pm

    lots of BS , i think this lip service is to diffuse the situation and stop the planned demo that the taxi drivers where promising to stage at SPAD HQ…

    Like or Dislike: Thumb up 13 Thumb down 0
    • George Abdul on Oct 28, 2015 at 6:51 pm

      SPAD will implement the Centralised Taxi Service System (CTSS), to monitor taxi supply distribution and performance.
      SO SPAD WHAT YOU DO ON THE FIRST PLACE??? Sitting at office goyang kaki??? BS !!!

      Like or Dislike: Thumb up 17 Thumb down 0
  • jashdasjk on Oct 28, 2015 at 5:15 pm

    clearly, the licensing system where lease goes up to rm1500 a month is the problem. skip the middle men, lets the cronies go hungry and die and lets taxi drivers be rewarded for THEIR hard work. using the meter of course

    Like or Dislike: Thumb up 35 Thumb down 0
  • LATUK on Oct 28, 2015 at 5:23 pm

    Everybody knows what the problem is – cronism.

    1. Do not force them to buy proton, let them choose the most reliable and affordable brand.
    2. open up the market, give the individual taxi drivers the license, do not force them to ‘rent’ the license for RM40 or RM100 per day.

    Like or Dislike: Thumb up 28 Thumb down 1
    • camtakpro on Oct 29, 2015 at 1:51 pm

      No car and license rentals how SPAD bini can buy Birkins?

      Like or Dislike: Thumb up 1 Thumb down 0
  • same old story…in tahun 2020 expect same statement..

    Like or Dislike: Thumb up 18 Thumb down 0
    • ismail harun on Oct 28, 2015 at 6:36 pm

      Don’t wanna mince your words.
      Same shit different day.
      Recycled policy change and wayang kulit.
      Just use the darn taxi meter and we
      don’t wanna hear your sob story of trying so hard to meet ends , high cost of living and family problems.
      I am a frequent taxi user and each time I hear this same crap.
      If you find it difficult to drive a taxi then just get another job.
      Sorry but the truth hurts.

      Like or Dislike: Thumb up 26 Thumb down 1
  • Spada on Oct 28, 2015 at 6:28 pm

    You know what SPAD? what you are trying to do has already been achieve by UBER and Grabcar.

    You just need to get lost, and bring along all your useless taxis with you.

    Then legalise Uber and Grabcar, which has proven to be much better then you ever wanted to be.

    Like or Dislike: Thumb up 19 Thumb down 0
    • Albert on Oct 28, 2015 at 8:36 pm

      Spada,you are damn accurate….the botak should go.The mogok specialist should mogok infront of SPAD instead of Kajang.
      SPAD should be renamed SPIT (ptui).
      Shambolic piece of shit.

      Like or Dislike: Thumb up 14 Thumb down 0
  • James on Oct 29, 2015 at 12:58 am

    We had enough of all these barking .
    You can’t even get your taxi drivers to use their meters. Are you living in denial ?
    Where is the enforcement ?
    Time to put your foot down and revoke the license of there bad hats.
    Sadly we still see these taxi drivers haggling and fleecing the public.
    UBER is still the best.
    No questions asked just drive me to my destination. Thank you.

    Like or Dislike: Thumb up 8 Thumb down 0
  • azrai on Oct 29, 2015 at 8:30 am

    The key of the problem is the ‘pajak’ system a.k.a. modern slavery. Welcome to millennium vampire system.

    Like or Dislike: Thumb up 5 Thumb down 0
  • Mann Bell on Oct 29, 2015 at 8:45 am

    i want to suggest an online system where customers can report straight away about bad behaviour of taxi drivers and when hq receives a complain, they can disable the taxi immediately until the drivers apologizes to the customer!

    Like or Dislike: Thumb up 2 Thumb down 1
  • longjaafar on Oct 29, 2015 at 9:54 am

    Remove the leasing fee of RM1500 a month, and there will be a vast improvement.
    But sadly, it will never happen, because the license are held by politicians , who live off the sweat and toil of the taxi drivers.
    If SPAD tries to remove the “pajak” system, the UMNO warlords will make sure Syed Hamid Albar loses his job, and a new compliant Chairman will be appointed.

    Like or Dislike: Thumb up 5 Thumb down 0
  • mr1031 on Oct 29, 2015 at 11:29 am

    I áctually dont believe u SPAD

    Like or Dislike: Thumb up 0 Thumb down 0
  • Earthling on Oct 29, 2015 at 4:44 pm

    TEKS1M? More like KEKSIM! Those who understands Hakka will know!

    Like or Dislike: Thumb up 0 Thumb down 0
 

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