Transport Ministry reviewing possible regulations with SPAD for ride-sharing services like Uber and GrabCar

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The Malaysian Transport Ministry is reviewing possible regulations for ride-sharing services like Uber and GrabCar, according to a Berita Harian report. Datuk Abdul Aziz Kaprawi, Deputy Transport Minister, stated that these services are operating in a legal (unregulated) grey area at the moment.

He added that the ministry will soon conduct a workshop on the matter with the Land Public Transport Commission (SPAD), with a report to be published after. “Among the factors that must be adhered to by these ride-sharing services is that they must possess a valid licence to offer this service and ensure their vehicles are checked periodically at Puspakom,” he said.

SPAD is currently in the process of making amendments to the Land Public Transport Act 2010 that will allow them to take direct action against these ride-sharing app providers (Uber and GrabCar). With private vehicle owners offering transport services through these apps, often times without valid permits and licences, this has sparked an outcry from regular taxi drivers.

Taxi Drivers Protest Against GrabCar 2

However, the government recognises the popularity of these ride-sharing services, especially among the youth, hence it is paying close attention to the issue. The study of possible regulations for the emerging industry is among the steps taken for the continued existence of these services.

To appease the cries of unfair competition from regular taxi drivers, Abdul Aziz also said Putrajaya will consider easing existing regulations for taxi firms and drivers to provide some cost savings to the two parties, including the extension of the compulsory vehicle inspection period from six months to one year. A new mini-taxi system could also be part of the regulation revamp.

Do you welcome this move by the Transport Ministry to introduce regulations for ride-sharing services in the country? Would such a move appease regular taxi drivers who feel like they have an unfair advantage compared to Uber and GrabCar drivers? Let us know what you think in the comments below.

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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

  • Uberian on Dec 17, 2015 at 5:15 pm

    Turning Uber and GrabCar into taxi by forcing them going to expensive and troublesome checks at Puspakom? All about benefiting the cronies no matter what. This government sucks.

    Like or Dislike: Thumb up 19 Thumb down 0
    • Because ride-sharing is not ride-sharing also

      Like or Dislike: Thumb up 0 Thumb down 0
    • Consumer on Dec 17, 2015 at 9:08 pm

      Current app base is strict enough which base on my experience with Uber, none of the car ever failed me.
      Interestingly the every 6 months puspakom regulated Taxi mostly having 2 things, sini bunyi & sana bunyi.(maybe i am the one no luck with Taxi?)

      it could be their commitment to be a taxi driver is too high until they poor enough to do a maintenance for their car.

      Like or Dislike: Thumb up 2 Thumb down 0
  • Mini tekxi we name it lancar.

    Like or Dislike: Thumb up 0 Thumb down 0
  • old dog on Dec 17, 2015 at 6:28 pm

    you have a Transport Minister and there is SPAD, now who is in charge?
    seems like SPAD in full charge, and Transport minister is taking money without doing anything..

    Like or Dislike: Thumb up 6 Thumb down 0
  • Nasi Lemak Managed! on Dec 17, 2015 at 8:29 pm

    This is nasi lemak manages company. U think transport ministry care about his own ppl? Muahahaha… They r going to modify the law to force uber n grabcar to ‘donate’ money to them…this country becoming corrupted more n more… Example: our 2.6b donation to jibby

    Like or Dislike: Thumb up 4 Thumb down 0
  • Arnold on Dec 17, 2015 at 9:25 pm

    Job well done SPAD, since you’re considering to regulate Uber and GrabCar!
    At the moment SPAD is the only enforcement which is struggling to revive Taxi industry in Malaysia and they are doing their best.
    Just wondering why the transport ministry have to announce the good news and not SPAD?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Painter on Dec 17, 2015 at 11:55 pm

    Looking forward to this news. Similar like what I suggested before. Nobody can fight the force of consumerism. Just like the boundary-less internet. Regulators can only regulate, they cannot stop people from wanting what they want.

    Now just have to find best ways to protect the industry and consumer.

    Like or Dislike: Thumb up 6 Thumb down 0
    • kapchai on Dec 18, 2015 at 8:23 am

      I fully agree with this “legalisation” of the ride sharing services. Go for it, move forward

      Like or Dislike: Thumb up 0 Thumb down 0
 

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