Grab Malaysia sees reduction in driver registrations after new rules announced by Ministry of Transport

Following the government’s decision to introduce a bevy of new rules to create a level playing field between the e-hailing and conventional taxi industries, Grab Malaysia has revealed a reduction in the number of new part-time drivers registering with the ride-hailing company.

In a report by Bernama, Grab Malaysia’s country head Sean Goh revealed it was normal to see a decrease during a transition period. “We are finding the best solution for all (parties) as we understand the majority of our drivers are part-timers and their income from Grab contributes 30% to their household income,” he said after meeting with the Council of Eminent Persons recently.

Goh added that Grab had actively engaged with the Ministry of Transport (MoT) and that discussions will continue to ensure a common ground is found between the parties. He also noted that the company is in talks with various insurance companies on new insurance requirements, which was one of the changes that the MoT wants to implement.

Other revisions include a mandatory six-hour course at designated driving institutions for drivers to obtain their Public Service Vehicle (PSV) licenses, annual Puspakom vehicle inspections and a minimum three-star ASEAN NCAP safety rating for the vehicle being used. E-hailing companies must also prepare driver’s guideline and register with the Companies Commission of Malaysia and Cooperative Commission of Malaysia, as well as implement an SOS emergency function in their app.

The new rules were announced in mid-July this year, but all stakeholders (including Grab) have been given a one-year moratorium from the gazetting of the procedures, before full implementation starts next year.

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