Amendments to regulate Uber and Grab tabled

KUALA LUMPUR: Amendments to two laws to regulate e-hailing services or intermediation business like Uber and Grab have been tabled for the first reading.
Minister in the Prime Minister’s Department Datuk Seri Nancy Shukri, tabled the amendments to the Land Public Transport (LPT) Act 2010 and the Commercial Vehicles Licensing Board (CVLB) Act 1987.
She said both the amendments will be tabled for the second and third reading in the same session.
The LPT bill, which comes under the Land Public Transport Commission (known as SPAD) seeks to amend the law to introduce the intermediation business and widen 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 bill stated.
The proposed amendments also seek to introduce a new section to regulate licensing the intermediation business including application, conditions, renewal and revoking of the licenses issued by SPAD.
With the passing of this law, it will be an offence to operate an intermediation business without a license and the license holder will be compelled to keep accounts and records.
As a consequence of the regulation, the LPT bill empowers SPAD to take action against anyone who "assaults, hinders or obstructs" a licensee, business owner or operator.
The license issued cannot be transferred or assigned to another person unless authorised by SPAD.
All applicants for the license must provide complete information of his financial standing to prove his ability to maintain and operate the intermediation business.
SPAD has the power to grant in full or part according to what it deems fit upon payment of a prescribed fee.
The conditions of the license include the type of intermediation business to be operated, services provided, safeguard measures for users and standard of performance to be complied by the licensee.
Meanwhile the amendments to the CVLB bill will allow e-hailing vehicle to be a public service vehicle.
The bill also expands the definition of intermediation business provided for in the LPT bill.
Similar to the LPT bill, this proposed law also functions to regulate e-hailing and the intermediation business through the introduction of a new section to regulate licensing of the intermediation business including application, conditions, renewal and revoking of the licenses issued by CVLB.