Cabbies to get RM5,000 cash grant to own cars
The cash incentive is among 11 initiatives approved by the Cabinet in a bid to transform the traditional taxi industry that is now facing stiff competition from public transport providers in the form of ride-sharing services like Uber and Grab.
“The lease system has created a lot of problems and unhappiness among drivers. So we give the individual taxi drivers an opportunity to exit the lease system and apply for individuals licenses.
“They also will be given a RM5,000 grant by the government, so that they can use it as a deposit [for the new car],” SPAD chairman Tan Sri Syed Hamid Albar told a press conference at the commission’s headquarters here.
He said Putrajaya has allocated RM150 million for applicants, but added that applicants will be screened for criminal and bankruptcy records.
The other new initiatives include companies using the e-hailing system to register under the Companies Commission of Malaysia (SSM). Those drivers must also have a SPAD-approved driver identification card.
The new individual taxi licensing system that will be implemented by SPAD starting September 1 will require all Malaysians interested in being taxi or hire car drivers under Uber or Grab to register under the commission.
One of the criteria that will be scrutinised by the agency includes background checks for any criminal records or offences under Road Transport Department (RTD).
The programme also includes allowing all cars, irrespective of local or foreign models, to be used as public transport vehicles.
Other initiatives include imposing regulations on ride share service to "ensure that legitimate policy objectives like compulsory insurance coverage and safety requirements" are met.
SPAD chief executive officer Azharuddin Mat Sah also said the commission will be implementing a new rationalised fare structure which takes into consideration both metered and zonal rates.
The other solutions which the Malaysian Cabinet together with SPAD agreed on last week include regulating e-hailing as part of the transport act, introducing KPIs for taxi operators and a more stringent pre-screening process for drivers.
The new system also seeks to introduce a merit-demerit system for drivers, as well as a more rationalised fare structure which would take into consideration a better metered structure and zonal rates for certain areas.
from Malay Mail Online | All http://ift.tt/2bCd5yV
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