Grab will soon be required to use vehicles that are approved by the Malaysian government to conduct its ride-sharing operations, and the vehicles will be subject to insurance and tax requirements similar to those of taxis.

“I have brought this up. I told the minister of transport to fix it, but unfortunately there has been no progress. I will try again. I too, feel it is unfair. This matter has my attention but I cannot give my assurance that Grab will be abolished, but we can make them equal like taxis,” prime minister Tun Dr Mahathir Mohamad said in a meeting with taxi drivers in Langkawi, as reported by New Straits Times.

This was in response to the question of whether or not Grab will regulated just like normal taxis in order to ensure fair competition, at the dialogue between the prime minister and the group of around 200 Langkawi taxi drivers. A small group of taxi drivers staged a walkout as Tun Mahathir was explaining the situation on e-hailing in Malaysia.

In July, it was reported that e-hailing service providers – such as Grab – will be required to hold a Public Service Vehicle (PSV) license which costs RM115 annually, and vehicles used must undergo annual inspections at Puspakom. Two months prior, the Malaysian Taxi, Limousine and Car Rental Operators and Drivers Association called for the new government to ‘abolish’ e-hailing service providers and for e-hailing to be given to them.