PETALING JAYA: The Transport Ministry's new Motor Vehicle Licence (LKM) rates for e-hailing service vehicles have been welcomed by drivers associations nationwide.
They said the announcement to introduce more flexible road tax renewal periods for e-hailing vehicles is long overdue and a necessary correction to an issue that has burdened drivers for years.
Malaysia E-Hailing Drivers Association (MeHDA) president Daryl Chong described the announcement as a timely and progressive step for the sector. By adjusting the fee structure to better accommodate the financial realities of drivers, Chong said the initiative directly supports vehicle owners in managing daily operations more efficiently.
"Flexible licensing fees reduce the immediate financial burden on drivers, allowing them to allocate resources towards vehicle maintenance, fuel and other operational costs.
"This may, in turn, enhance service reliability and safety standards, ultimately benefiting passengers as well," he said.
Chong added that the approach signals the government's commitment to fostering a sustainable and inclusive transport ecosystem.
Malaysia E-Hailing & Delivery Organisation (Medo) president Masrizal Mahidin said previously, drivers were penalised for renewing road taxes for shorter durations, as renewals of one to five months were charged at the six-month rate, and seven to 11 months at the full one-year rate.
"The new structure finally aligns fees more fairly with actual renewal periods and will help drivers better manage day-to-day operating costs. From a compliance perspective, this flexibility also reduces the likelihood of delayed renewals," he said.
Masrizal also commended the Old Vehicle Replacement Matching Grant programme but noted it largely targeted taxis and was not relevant to most e-hailing drivers using newer vehicles.
He hopes the Transport Ministry will focus on reviewing the Land Public Transport Agency (Apad) Act 715 to better reflect industry realities and safeguard livelihoods.
Beginning Friday (Jan 30), e-hailing service vehicles can renew their LKM for periods ranging from one month to one year.
The cumulative fee for renewals between one and five months will not exceed the six-month LKM fee rate.
The Transport Ministry also announced that RM10mil has been allocated to assist 5,000 owners of vehicles over 20 years old to transition to safer vehicles through a government grant of up to RM2,000.
