Registration soon for Uber and GrabCar drivers in Malaysia
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KUALA LUMPUR - Uber and GrabCar drivers will soon have to apply for a registration card, under the Malaysian government’s plan for them and regular taxis to operate under the same environment, said Malaysia's transport minister Liow Tiong Lai.
“Uber and GrabCar divers will need to have a driver’s card registered under the Road Transport Act, which is to regulate all public transportation drivers,” he said yesterday.
He said they would have to apply for the card from the land public transport commission (SPAD).
“I will leave it to SPAD to announce the details and the process on how to apply,” he said.
While taxis will undergo de-regulation to enable them to compete with the new ride-sharing services, additional regulation will be imposed on Uber and GrabCar drivers, Liow said.
Earlier this week, the Cabinet decided to legalise Uber and GrabCar in Malaysia. In a related development, Second Finance Minister Abdul Ghani said the reason why the Government decided to legalise the ride-sharing services was so that they could be taxed.
He said while the drivers would not be taxed, the platform on which they operated would.
“The drivers pay 25 per cent of each fare to these companies, which already rake in millions in profit. It would not be fair to tax the drivers when they are feeling the economic pinch.
“As these platforms are operating within the country, we may have to make it compulsory for them to become a registered company where we can see their profits and how to tax them,” he said during the Program Semarak Komuniti 1Malaysia in Kampung Pandan yesterday.
“We have to be fair to those who activate the economy as well as those who provide the platforms to stimulate the economy such as Uber and GrabCar,” he said.
He added it would be unwise to forbid a digital economy to enter the economic market, especially since these systems were accepted around the world.
“What we need to emphasise is how to look after the welfare of existing taxi drivers. The Government is considering incentives that can help them increase their income and boost confidence among the people,” he said.
