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The government is looking into a plan to introduce a new small car-based taxi service in major cities around the country, Berita Harian reports. The proposal for the ‘mini taxi’ service is to utilise small engine displacement models such as the Perodua Axia as they are cheaper to maintain, and benefits will include cheaper rates for customers.

The Land Public Transport Commission (SPAD) is currently drafting a plan on the proposal, Deputy Transport Minister Datuk Abdul Aziz Kaprawi said. He explained that the implementation of mini taxis will ensure a cheaper fare rate, which would help in addressing the rising costs of living.

“Many people had questioned the government’s role in addressing the rising cost of living. which also includes transportation cost. The rate for motorcycle taxis or a tricycles in Indonesia and Thailand is cheap, but we do not offer such service as it is deemed to be hazardous. The mini taxi is a good idea as the maintenance fee is cheap, thus it would indirectly reduce the fare,” he told the publication.

He added that the new service will not affect conventional taxi businesses, as it will cater only to those traveling from any Light Rail Transit (LRT) station to their home, within a certain proximity. He also said that the service will give taxis a competitive business boost in competing with ride-sharing services such as Uber and Grabcar.

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