Taxi industry gets RM10mil boost


KUALA LUMPUR: The taxi industry has been given a RM10mil injection to rejuvenate it with new cars and the latest hiring technology.

Announcing the launch of the National Madani Taxi Rejuvena­tion programme yesterday, Datuk Seri Anwar Ibrahim said the new cars will improve the image of Malaysia’s taxi service and the livelihood of cabbies who have struggled with low income and various industry problems for decades. 

Under the programme, selected financial institutions will provide financial assistance to taxi drivers to own brand new Proton S70s and have individual taxi permits.

“I approve an additional RM10mil with immediate effect. This is specifically for taxis and the S70 programme,” the Prime Minister said during the launch at Dataran Merdeka yesterday, which featured red Proton S70 sedans redesigned as the new face of Malaysian taxis.

Also present were Transport Minister Anthony Loke and Federal Territories Minister Hannah Yeoh.

The RM10mil will be used to help cabbies who apply under the programme to own Proton S70s.

Anwar said this was in addition to his Budget 2026 announcement of full exemption on excise duty and sales tax for taxi owners and private hire car operators to buy new nationally manufactured taxis or private hire vehicles. 

Fresh look: Anwar unveiling a Proton S70 taxi at the National Madani Taxi Rejuvenation Programme launch at Dataran Merdeka. Also present were Loke (second from right) and Yeoh (fourth from right). — AZHAR MAHFOF/The Star
Fresh look: Anwar unveiling a Proton S70 taxi at the National Madani Taxi Rejuvenation Programme launch at Dataran Merdeka. Also present were Loke (second from right) and Yeoh (fourth from right). — AZHAR MAHFOF/The Star

“What we see today is a new generation of taxis with new technology. But drivers must also learn new ways of operating. In the past, payments were made in the usual way. Now we use apps. 

“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.

“Every driver receiving a Proton S70 should undergo a new training programme. It is not enough to have a new vehicle and a new look – they must also master the new technology,” he said.

Anwar said the first step is to provide low-interest loans, new vehicles and permits registered directly under the drivers’ names.

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

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

He noted that during slow seasons, a cabbie’s earnings tend to fall to RM2,500 or RM3,000 a month from the usual RM4,000.

“Reaching RM5,000 is very difficult. Under this new scheme, by reducing repair and servicing costs and loan repayments, we estimate that taxi drivers can earn RM5,000 to RM7,000 per month.“That will allow them to live more comfortably,” he said.

Noting that the challenges faced by taxi drivers have long been raised, Anwar said they are tied to the hardship of making a living and being left behind by technological changes.

“We inherited a system that we cannot be proud of. Why were taxi permits given to wealthy individuals while drivers were simply told to earn an honest living? Under the current government, no minister or political leader is given taxi permits. 

“We have also asked local councils to provide more comfortable facilities. Taxi stands often look run-down. We have asked the state governments – as these matters fall under local councils – to improve them,” he added.

Anwar advised taxi drivers to speak politely, dress neatly, keep their vehicles clean and treat passengers with courtesy to enhance the country’s image.

“From the taxi ride to the hotel reception, every interaction contributes to our country. Not everyone has to be a senior official or an elected representative to serve the nation. I salute and thank all taxi drivers,” he added.

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