After months of ambiguity, finally SPAD has submitted a proposal to the Government detailing solutions to uplift the service quality and include ride sharing services as healthy competition within the taxi industry.

Following the taxi lab conducted in December 2015, SPAD has recognised the challenges of resolving competing dynamics with new disruptive business with existing models to ensure satisfaction of all. Therefore, the commission in preparing its recommendations to the Government, has taken a balanced approach which focuses instead on ensuring that the present policy, regulations and requirements drive a level playing field for taxi industry in the future.

The proposal will seek to legalise and regulate e-hailing services such as Uber and Grab and also level the playing field for existing taxi drivers to create a competitive yet fair eco system. New individual taxi licenses will be issued to drivers with clean track records to encourage entrepreneurial spirit and also provide viable exit option for eligible taxi drivers who are burdened under the current leasing (pajak) model. There will be also more vehicle models for taxi drivers to choose from.

“The Commission believes that liberalising the taxi model is part and parcel of a competitive industry landscape that we want to drive for this industry,” said SPAD Chief Executive Officer Mohd Azharuddin Mat Sah.

“Clearly these reforms and the change will have a big impact on our taxi industry. Once Cabinet approval is in, we will work through the details to ensure that the solutions are properly implemented considering the complexities of the transition,” he said.

In May 2016, SPAD presented proposed solutions under the Taxi Industry Transformation Programme to the Economic Council and received positive feedback. The Commission will announce the full details in due course following Cabinet approval targeted for July. The topic on the new ride sharing service has been contentious with some taxi drivers taking the law to themselves when cases of attack on Uber drivers were reported on various occasions.