Malaysia PM Anwar announces $3 million boost for taxi industry rejuvenation

KUALA LUMPUR – The taxi industry in Malaysia has been given a RM10 million (S$3.17 million) injection to boost rejuvenation with new cars and the latest hiring technology, said Prime Minister Anwar Ibrahim.

He said the new cars will not only create a new image of efficient Malaysian taxis but will also elevate the livelihoods of taxi drivers, who have long struggled with low incomes and various industry problems for decades.

Anwar was speaking at the launch of the National Madani Taxi Rejuvenation event on July 3, which featured red sedans redesigned as the new face of Malaysian taxis.

He also said the Madani government has barred the well-to-do from owning many taxi permits in the past, solving the problem of monopolies of poor taxi drivers controlled by the rich.

Under the programme, selected financial institutions will assist taxi drivers financially to own brand-new sedans and individual taxi permits.

The event was also attended by Malaysian Transport Minister Anthony Loke and Federal Territories Minister Hannah Yeoh.

“I approve an additional RM10 million effective immediately. This is specifically for taxis and the S70 programme,” said Anwar, referring to the Proton S70 vehicle, which has been selected as the new official taxi model.

“What we see today is a new generation of taxis with new technology. But drivers must also learn new ways of operating,” he added.

“In the past, payments were made in the usual way. Now, we use new apps,” he said.

“If additional training is needed, ministry officers can visit taxi stands and conduct courses. It is difficult for drivers to spend an entire day at training centres because they lose a day’s income,” he added.

“The taxi issue is one that has long been raised. It is tied to the hardships of making a living, being left behind by technological changes, and the struggles faced by drivers who have been at a disadvantage,” Anwar said.

“I believe the ministry can find practical solutions, just as Puspakom is doing by bringing services closer to drivers instead of requiring everyone to visit service centres,” he added.

Puspakom is Malaysia’s only government-appointed vehicle inspection company.

“Likewise, ministry officers can travel to taxi stations in places like Kuala Lumpur, Petaling Jaya, Damansara, Putrajaya, Johor Bahru and Muar to provide training on new apps and digital technology.

“Every driver receiving a Proton S70 should undergo this new training programme,” he said.

“It’s not enough to have a new vehicle and a new look – they must also master the new technology,” he added.

“That is why our first step was to provide low-interest loans, new vehicles and permits registered directly under the drivers’ names.

“Drivers may need loans, and that is acceptable, but the permit remains with the taxi driver and cannot be transferred to wealthy individuals.”

“This is an important policy decision to safeguard the interests of taxi drivers and their families,” said the Prime Minister.

Anwar said that one final issue concerned drivers’ income, and that during slow seasons, earnings fall to RM2,500 or RM3,000 a month. “Normally, they earn around RM4,000, while reaching RM5,000 is very difficult,” he noted.

“Under this new scheme, after discussions with Minister Loke, we have developed a plan. By reducing repair costs, servicing costs and loan repayments, we estimate drivers could earn between RM5,000 and RM7,000 per month,” he said. “That would allow them to live more comfortably. RM4,000 is simply not enough any more.”

“This shows how carefully our government examines these issues. I did not come here simply to announce another RM10 million,” said the Prime Minister.

“We studied what Proton could contribute, what the Finance Ministry could add, what services Puspakom could improve, what other facilities could be provided, and what tax incentives could reduce the burden on taxi drivers and their families.” THE STAR/ASIA NEWS NETWORK