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Friday, 31 March 2017

Suruhanjaya Pengangkutan Awam Darat (SPAD) has begun awarding individual taxi licenses to qualified taxi drivers who have completed their ‘pajak’ contracts.

Implemented as an initiative under the Taxi Industry Transformation Programme (TITP) to improve the welfare of taxi drivers and create a more level-playing field in the industry, the Commission announced the approval of 300 individual taxi licenses. 

The newly approved 300 individual licences are part of the first batch of applications processed from a total of 3007 submissions received by the Commission since August 2016. All applications are subjected to SPAD’s licensing requirements that have been designed to uplift the quality of service in the industry.

Also as part of the TITP, all 300 individual licence recipients will also receive the RM5,000 cash grant aimed at facilitating the purchase of new vehicles. This cash grant is part of the RM150 million allocated by the Government for qualified recipients of the individual taxi licenses as announced by the Prime Minister during the Budget 2017 speech. 

At an official ceremony where offer letters (Surat Tawaran Kelulusan) were presented to the first 300 individual license recipients, SPAD Chairman Tan Sri Dato’ Sri Dr. Syed Hamid bin Syed Jaafar Albar affirmed that these approvals reflected the Government’s commitment to create a progressive Malaysian taxi industry.

“By giving these individuals an opportunity to own their licences, we are creating a new breed of taxi entrepreneurs who will be better placed to make the right choices to become more competitive as the industry embraces technological advancements and copes with trends driving market demand today,” he said.

He added that taxi drivers have been requesting for the freeze on individual licenses to be lifted for a long time, as many have been burdened under the old pajak system that contributed to structural problems and challenges in creating a more customer-oriented taxi service landscape. 

“Following further review at the Taxi Transformation Lab by SPAD in November 2015, we recommended the issuance of individual licenses for applicants who meet with requirements as a way forward for the industry and we are pleased to be able to implement this TITP recommendation today,” he said.

Overall, the TITP paves the way forward for the Malaysian taxi industry to be more sustainable and responsive to market forces. 

Effective 1 April 2017, vehicle models will be liberalised to enable wider and more competitively priced car options for license holders. Under this move, all vehicle brands and models which achieve a 3-star safety rating under the ASEAN New Car Assessment Program y

(NCAP) or its equivalent can be used for taxi services. This is to cater for greater flexibility when taxi drivers replace ageing vehicles especially in reducing operating costs.

For taxi drivers still serving their pajak contracts, SPAD will regulate the enhanced and standardised leasing contracts and enforce adherence of the proposed mandatory terms by incorporating them into the Operator’s Licence conditions.

Amendment to the Land Public Transport Act 2010 is ongoing to enable regulation on the proposed contractual terms which will include rent-free day for PUSPAKOM inspection, annual and sick leave, first party vehicle insurance and deposit refund at the end of the contract. 

For full details on the TITP, please refer to or contact SPAD (Hotline: 1-800-88-7723 or email


To qualify for the STK, SPAD requires applicants to fulfil the following criteria:

  • Malaysian citizenship
  • Registration with the Companies Commission of Malaysia as a Sole Proprietorship or Partnership
  • Possess a valid public service vehicle licence
  • Possess an active SPAD issued Driver’s Card or one that has been expired for not more than three (3) years from the date of application
  • Possess at least three (3) years of taxi driving experience
  • Does not own a Public Service Vehicle Service Operating Licence for Taxi Or Hired Car class on the date of application
  • Is free of criminal records
  • Not a bankrupt

To qualify for the RM5,000 Government Cash Grants, STK holders must fulfil the following criteria:

  • Fulfil the requirements for Operating Licence requirements under the Taxi or Hired Car class
  • Possess an active SPAD issued Driver’s Card or one that has been expired for not more than one (1) year from the date of application
  • Completion of the ‘pajak’ leasing contract for not more than three (3) years from the date of application for the Taxi or Hired Car class Operator’s Licence through the provision of:
  • A copy of a the completed ‘pajak’ contract or;
  • A letter from the leasing company confirming the completion of the ‘pajak’ contract with them

For media inquiries:
Communications Division
Suruhanjaya Pengangkutan Awam Darat 
Tel : +603 2726 7000/Fax: +603 2726 7300 
Email :

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