Government Announces New Regulations Favouring Uber, Grab

In an effort to recognise the contribution of the ridesharing industry to riders, drivers and cities, the Malaysian Government yesterday announced new regulations that ultimately aim to solve urban mobility issues and transform the country’s transportation landscape.

It is said that Uber and Grab car owners will be soon allowed to legally offer rides to passengers.

According to Transport Minister Liow Tiong Lai, car owners who use these ride-hailing apps need to carry what is called a "driver's card", which will be issued after the owners register with the Land Public Transport Commission (SPAD) and get their vehicles inspected at Puspakom for roadworthiness.

On another hand, Second Finance Minister Johari Abdul Ghani said the government is looking at how to make companies that offer these apps register locally so they can be taxed.

"The drivers are paying 25 per cent of every fare to these companies, which already rake in millions in profit. So, as these platforms are operating within the country, we may have to make it compulsory for them to register as companies so we can see their profits and how best to tax them," he said.

Datuk Johari also added that the government cannot back away from allowing the use of these modern business platforms.

Leon Foong, the general manager of Uber Malaysia said, “On behalf of our drivers and riders, Uber welcomes the progressive approach of the Malaysian Government. These regulations send a clear message that ridesharing is here to stay, and provide a competitive landscape that improves conditions for the entire industry, ultimately benefitting riders and drivers.”