KUALA LUMPUR — Ride-sharing services such as Uber and Grab could soon be legalised in Malaysia after the government tabled amendments to existing transport laws on Tuesday (April 4) that would regulate these services and protect drivers from harassment.

The amendments to the Commercial Vehicles Licensing Board (CVLB) Act 1987 and the Land Public Transport Act 2010 were tabled by Minister in the Prime Minister’s Department Nancy Shukri in Parliament.
Both Bills are expected to be debated at the current Parliament sitting, which ends on Thursday.

Under an amendment to the CVLB Act, e-hailing vehicles will be classified as public service vehicles, and the operators would need to obtain an “intermediation business licence” which will be issued by public transport regulator, the Land Public Transport Commission (Spad).

The licence is for the business of facilitating arrangements, bookings or transactions of a ride-sharing vehicle.

Operators of ride-sharing services who run their businesses without the licence can be fined up to RM500,000 (S$158,000), or face a maximum jail term of three years, or both, upon conviction. Those who fail to comply with the licence conditions can be fined between RM1,000 and RM200,000, or sentenced up to two years in jail, or both.

The amendments to the two laws are part of the move by Malaysia to legalise Uber and Grab services in its efforts to transform the country’s public transport services.

Last year, the government approved plans to legitimise Uber and Grab services, as well as to transform the taxi industry.

Currently, there are about 77,000 registered taxi drivers in Malaysia, while there are no official statistics on the number of Uber and Grab drivers.

Malaysia’s taxi associations have been unhappy with the emergence of ride-sharing services, claiming they suffer big losses and face unfair competition as the services remain unregulated while conventional cabbies face restrictions by law.

Taxi drivers had held strikes against ride-sharing services, complaining that drivers from these services were “stealing” their customers.

There were also reports of intimidation and attacks by taxi drivers against Uber and Grab’s drivers.

To deter such incidents, a clause has been inserted into the proposed amendments to the Land Public Transport Act.

Those found guilty of assaulting, hindering or obstructing e-hailing services’ providers can be fined up to RM1,000, or jailed three months or both. 

The advent of private-hire car industry have disrupted existing business models of taxi operators in the region, with some countries taking stern actions against ride-sharing services. 

Thailand has cracked down on ride-sharing operators by conducting sting operations and arresting the drivers for using private vehicles to offer a public transport service. 

In Indonesia, local municipalities are allowed to set fare caps as part of a broad revision launched in April last year. The revision also limit the number of ride-sharing vehicles allowed to operate in each district and impose new taxes on car-hailing businesses.

Singapore’s private-hire car industry is regulated under a regime which includes licensing for drivers, registration of vehicles with the authorities, and the prominent display of decals and drivers’ vocational licence. 

All drivers wishing to provide chauffeured services are required to apply for and obtain a Private Hire Car Driver’s Vocational Licence (PDVL). Applicants must also undergo a medical examination and will have to go through background screening.  AGENCIES