Uber and Grab may be legalised in Malaysia
Ride-sharing services Uber and Grab may soon be legalised in Malaysia, depending on whether a recommendation by the Land Public Transport Commission is accepted by the federal government. The pro-Uber proposal has obviously been met with opposition from taxi associations, however the Institute for Democracy and Economic Affairs supports the recommendation, stating that traditional taxis offer poor service quality and have been resistant to change for too long.

Many commuters have turned to both Uber and Grab for the cheaper rates, as well as better service and more polite drivers. The main grouses with taxis are drivers’ refusal to use meters, rude drivers, and the (dirty) state of some of the vehicles.

Ride-hailing services, such as Grab and Uber, may be legalised in Malaysia if a recommendation by the Land Public Transport Commission (SPAD) is accepted by the government.

The proposal was the result of a taxi probe that SPAD conducted last year, when the unsatisfactory state of taxi services in the country was highlighted.

Many commuters have turned to both Uber and Grab for the cheaper rates, as well as better service and more polite drivers. The main grouses with taxis are drivers’ refusal to use meters, rude drivers, and the (dirty) state of some of the vehicles.

SPAD said in a statement that it has taken a “balanced approach” to ensure that the present policy, regulations and requirements would ensure a level playing field for industry in the future.

"The Commission believes that liberalising the taxi model is part and parcel of a competitive industry landscape that we want to drive for this industry," said SPAD chief executive Mohd Azharuddin Mat Sah.

As expected this proposal has been met with protests from taxi associations, whose members have in the past taken to the streets against Uber and Grab as they blame the sharing services for loss of income. A few instances have seen cab drivers roughing up some drivers of Grab and Uber.

The Institute for Democracy and Economic Affairs (IDEAS) has come out in support of SPAD’s proposal, saying it would widen the choice for consumers and encourage healthy competition.

IDEAS chief executive Wan Saiful Wan Jan said in a statement that the current taxi industry model has proven to be resistant to change for too long, victimising individual taxi drivers, causing a decline in service quality, and resulting in a stigma worldwide.

He also called taxi drivers to improve their services instead of hiding behind protectionist policies.