E-hailing rules passed by Dewan Rakyat

28 Jul 2017 / 12:00 H.

    KUALA LUMPUR: All e-hailing service providers will be required to meet conditions similar to those placed on conventional taxi drivers.
    This follows the passing of amendments to the Land Public Transport (LPT) Act 2010 and the Commercial Vehicles Licensing Board (CVLB) Act 1987 in the Dewan Rakyat today.
    Minister in the Prime Minister's Department Datuk Seri Nancy Shukri said among others, e-hailing service providers will be required to:
     register to operate a public service vehicle;
     undergo compulsory medical check-ups;
     undergo periodic vehicle inspections;
     have proper insurance schemes; and
     display the driver's identification card.
    E-hailing service providers will be given up to one year to adjust to the regulations stipulated under the law.
    With the passing of the amendments, Nancy said Malaysia has become the first country in the world to regulate e-hailing services such as Uber and Grab.
    She said the amendments were mainly to provide a level playing field for both conventional taxi drivers and e-hailing service providers.
    "They will ensure that the taxi industry can develop along with the current trend while ensuring that the welfare of taxi drivers is not abandoned.
    "The terms and conditions placed on the conventional taxi drivers will apply all the same to e-hailing service providers," she said in her winding up speech earlier.
    Meanwhile, she denied as baseless, allegations that the Taxi Industry Transformation Plan (TITP) is only to protect the e-hailing companies' interest.
    "The TITP was developed after a detailed study and continuous consultation with all stakeholders in the industry to ensure that all players enjoy the benefits equally," she said.
    Among others, the amendments to the LPT Act, which comes under the Land Public Transport Commission (SPAD) introduces the term "intermediation business" and widens other existing definitions in the law.
    "Intermediation business" means the business of facilitating arrangements, bookings or transactions for the provision of land public transport services.
    The amended law introduces a new section to regulate licensing, the intermediation business including application, conditions, renewal and revoking of the licences issued by SPAD.
    "With the passing of the bill, it will be an offence to operate intermediation business without a licence, and licence holders will be compelled to keep accounts and records," Nancy said.
    Applicants for intermediation business licence must provide information of their financial status to prove their ability to maintain and operate the business.

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