PETALING JAYA: The Land Public Transport Commission (SPAD) has submitted a proposal to the Government to legalise and regulate ride-hailing services such as Uber and Grab.
In a statement on Saturday, SPAD said it had taken a "balanced approach" that focuses on ensuring present policy, regulations and requirements form a level playing field for the taxi industry in the future.
"We recommend the issuance of new individual taxi licences to drivers with clean track records to encourage entrepreneurial spirit at the individual level," said the Commission. "It also provides a viable exit option for eligible taxi drivers who are burdened under the current leasing (pajak) model."
SPAD also proposed that taxi drivers be allowed more vehicle model options.
"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 officer Mohd Azharuddin Mat Sah.
“Clearly these reforms and the change will have a big impact on our taxi industry.
"Once Cabinet approval is in, we will work through the details to ensure that the solutions are properly implemented considering the complexities of the transition,” he said.
Last month, SPAD presented its proposed solutions under the Taxi Industry Transformation Programme to the Economic Council and received positive feedback.
The Commission will announce the full details in due course following Cabinet approval that has been targeted for July.
In the meantime, SPAD requested the cooperation of all parties and to be patient to avoid controversy and confusion.
Recently, taxi drivers protested against ride-hailing apps, blaming them for a loss of income.
Uber and GrabCar have been seen as cheaper alternatives to taxis, with some users claiming that its drivers have been giving better services as well.