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Malaysia Amends Land Public Transport Act to Legalise Ride-Hailing Services

Malaysia Amends Land Pubic Trasport Act to Legalise Ride-Hailing Services e-hailing ride-sharing uber grab riding pink


Kuala Lumpur, 28 July 2017:  The Land Public Transport Commission (SPAD) welcomes the amendments to the Land Public Transport Act 2010 (APAD) passed in Parliament yesterday.


SPAD to Regulate Ride-Hailing Services

The tabling of the Bill by the Minister in the Prime Minister’s Department, YB Dato’ Sri Hajah Nancy Shukri in the Dewan Rakyat includes amendments to allow SPAD to regulate e-hailing services and uplift the taxi industry by introducing regulatory framework reforms which will be carried out in tandem with initiatives under the Taxi Industry Transformation Programme (TITP).


Safety Comes First

These amendments are to ensure that e-hailing service operators and drivers adopt the highest levels of safety and service standards which includes mandatory background checks by the Land Public Transport Commission (SPAD), Royal Malaysia Police and Road Transport Department. It will also give the Commission the power to introduce and enforce other rules such as ensuring e-hailing service operators provide SPAD with trip and other fleet-related data to help in transport planning functions.


Supply/Demand-based Fares

Meanwhile, e-hailing fares will not be regulated under the amended law and will remain market driven. The amendment also provides flexibility for metered taxi drivers to increase their income opportunity by adopting a dynamic pricing model when they opt to use e-hailing apps, in addition to street hailing based on metered fare.


Transforming the Taxi Industry 

The Government has shown leadership by acknowledging that regulatory systems need to be more responsive to innovation to foster growth. These reforms once gazetted, will offer diverse transport options for commuters, and help the taxi industry to progressively evolve towards a more level playing field by leveraging on technology and being responsive to market forces.

The Commission will outline further details about the new legislation and its impact on the taxi and e-hailing services in the nearest term.


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