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GOOD RECEPTION TO GOVERNMENT’S SCHEME TO ENABLE INDIVIDUALS TO OWN TAXI LICENSES

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Monday, 21 August 2017

MEDIA STATEMENT

GOOD RECEPTION TO GOVERNMENT’S SCHEME TO ENABLE INDIVIDUALS TO OWN TAXI LICENSES

Kuala Lumpur, 21 August 2017: The Taxi Industry Transformation Programme (TITP) is gaining steady momentum in its endeavour to increase the welfare of taxi drivers exiting the pajak system. Previously, 600 taxi drivers have received individual licences under the Taxi Industry Transformation Programme (TITP) since it was first announced in March 2017. Today, another 300 recipients were awarded individual licences which allows them to operate taxis as entrepreneurs after exiting the pajak contract with taxi companies. Present for the award ceremony was Minister from the Prime Minister’s Department, YB Dato’ Sri Hajah Nancy Shukri.

Eighty-eight of the individual licence recipients today received a RM5,000 Government grant each to help them purchase their own vehicles to be used as taxis. Previously, 343 taxi drivers had received this grant under the RM150 million allocated by the Government as announced by the Prime Minister in Budget 2017.

These vehicles could either be new or used cars (less than 7 years old) and must have a minimum rating of three stars under the New Car Assessment Programme for Southeast Asia (ASEAN NCAP) by the Malaysian Institute of Road Safety Research (MIROS), or other certification equivalent to this. The current list of approved vehicles under ASEAN NCAP includes selected models from Perodua, Proton, Toyota, VW, Honda, Ford, Daihatsu, Chevrolet, Isuzu, Nissan, Mazda, Mitsubishi, Subaru, Suzuki, Tata, Peugeot, Kia, Hyundai, and GWM.

SPAD has received more than 3,474 applications for individual licences since August 2016, and 1,722 have been approved. Applicants were screened by SPAD to ensure they have clean driving records - with no outstanding fines or summons and free of serious criminal offences.

“TITP aims to improve taxi driver welfare by creating a healthy and more equitable environment for the industry. By allowing competent and responsible individuals a way out from working under the pajak model, SPAD hopes to create a new generation of taxi-preneurs that will put customer satisfaction as a priority, while ensuring safety and service reliability,” said YB Dato’ Sri Nancy Shukri.

Recent amendments to the Land Public Transport Act 2010 approved by the Dewan Rakyat and Dewan Negara allow SPAD to scrutinise the hire-purchase contracts to ensure they are not lopsided.

Measures to provide a more equitable agreement include making it compulsory for taxi companies to provide medical leave, and rent-free days to send the vehicle for PUSPAKOM inspection, as well as to provide comprehensive (first party) insurance coverage for the vehicles.

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