RM60m allocation for taxi industry

PETALING JAYA: In an effort to keep the taxi industry competitive, Prime Minister Datuk Seri Najib Abdul Razak announced several measures including a grant of RM5,000 to purchase new vehicles and offer individual taxi permits to qualified taxi drivers.
In delivering the 2017 Budget at the Dewan Rakyat, today, Najib said the government will allocate RM60 million for the initiative.
"This will benefit 12,000 qualified taxi drivers who have ended their leasing contract with taxi companies," he said.
In addition, Najib said the government will also introduce a Socso scheme for individual taxi drivers with a monthly income of up to RM3,000, as majority of them are not presently insured.
He added with a RM60 million launching grant, the scheme will protect taxi drivers against accidents that occur while working.
Under the scheme, they will be required to contribute between RM157 and RM443 per annum which is only RM13.08 per month, he said.
"Should an accident occur while working, they are eligible to claim from Socso," said Najib.
Citing an example, he said, if a taxi driver suffers permanent disability, he will receive a lump sum payment between RM43,000 and RM121,000 and a monthly payment between RM1,281 and RM2,624, for life.
"In the event of death, the next of kin shall receive dependent's benefit at a rate from RM945 to RM2,655 per month," he added.
Additionally as part of the initiative for the lower income group, Najib also announced incentives should they opt to participate as drivers of ride-sharing services, such as Uber and Grab Car.
"Their income could reach up to RM1,500 per month for part time drivers working between 10 to 40 hours per week and RM4,300 if more than 40 hours per week," he added.
Those who do not own a vehicle, he said, the government will enable a down payment to be made using 1Malaysia People's Aid (BR1M) and provide a RM4,000 rebate for the purchase of a Proton Iriz.
Meanwhile, Malaysian Public Transport Users Association Ajit Johl welcomed the governments decision to encourage the rakyat to become drivers and use ride sharing apps.
"We also hope that taxi Drivers take the incentive and apply for individual permits to break away from the current scheme," he said in a statement, today.
However Ajit urged the Land Public Transport Commission (SPAD) to immediately regulate ride share providers and called on the government to ensure that the regulations are in place before the schemes are launched.
"Furthermore, we hope that the Government encourages taxi drivers to import luxury cars at 0% tax to be used as taxis.
"This will allow the taxi drivers to tap on a new market and not compete directly with ride share providers, who cater to a more budget conscious users," he added.