KUALA LUMPUR: A support package worth about RM160mil under Budget 2027 is the government's clearest sign yet of its commitment to protecting the welfare and raising the net income of e-hailing and p-hailing workers nationwide.
According to the Persatuan Rakan Grab Malaysia (PRGM), the high-impact announcement embodies the principle emphasised by Prime Minister Datuk Seri Anwar Ibrahim that economic growth must be returned to the people.
"Among the most significant elements of this announcement is aid to cover vehicle insurance, which has become an increasing burden on driver-partners. Recent rises in insurance premiums have placed real pressure on drivers’ net income.
"Assistance for insurance costs through Budget 2027 is a very welcome development that could bring meaningful relief to thousands of e-hailing drivers," the statement read.
PRGM said rising insurance costs were among the first issues the association raised in engagement sessions and discussions with Grab Malaysia since its formation last month.
Under Budget 2027 tabled on Friday (Oct 9), the government and Grab have agreed to co-fund a RM160mil support package, taking effect next year.
The package covers higher minimum earnings rates, aid for vehicle maintenance and insurance costs, and PERKESO contributions.
With these initiatives, median net income for e-hailing drivers is projected to rise by up to RM227 a month, while p-hailing riders stand to gain up to RM100 more a month.
PRGM also hopes the package's implementation mechanism will account for operating costs that vary by location, service type and driver-partners' needs nationwide, so the benefits are shared fairly and widely.
The government is also offering a 35 per cent PERKESO matching contribution to e-hailing and p-hailing workers, which will rise to 50 per cent if platform companies also shoulder the workers' contributions.
The PERKESO initiative also extends a 70 per cent matching contribution to over 200,000 self-employed individuals in 17 non-mandatory sectors.- Bernama
