KUALA LUMPUR – Taxi and e-hailing associations have lauded the government’s move to extend the age limit for their vehicles to 15 years, up from 10 years previously.
The move, which was announced by Transport Minister Anthony Loke on April 4, affected all ride-hailing vehicles in the peninsula, and ride-hailing vehicles in Sabah, Sarawak, and the federal territory of Labuan.
Combined Taxis Across Malaysia president, Kamarudin Mohd Hussain, said the move would benefit drivers whose vehicles neared the 10-year age limit, and allow them to use their existing vehicles without needing to seek another loan to purchase a new car.
This is what I and many others in the industry have been asking the government since the pandemic began in 2020.
“We have had numerous talks with the Economic Action Council previously but they did not materialise.
“It is good that the government now has adopted this policy to help struggling drivers stabilise themselves,” he told The Vibes when contacted.
Kamaruddin explained that just like the nation’s economy, taxi drivers need adequate time to recover from the pandemic and would be severely hampered if they need to purchase new cars.
“Many of them do not have stable income even coming out of the pandemic and it would be harder for them to seek any loan facility.
“By extending the vehicle age limit, they have adequate time to stabilise their finances and evaluate their options in purchasing a new car, among other priorities,” he said.
In his announcement, Loke said the policy is meant to help e-hailing and taxi drivers who are still struggling to find a stable income.
He stressed that these cars need to abide by cleanliness guidelines as well as routine or annual checkups to ensure safety and comfort for passengers.
Similarly, Grab Driver Malaysia Association deputy president Mohd Azril Ahmat also welcomed the new policy.
He explained that the timing of the policy also matches the supposed 10th anniversary since e-hailing companies were first established in the country.
Uber officially started operations in 2014 and received huge resistance from local taxi drivers due to supposed double standards stemming from a lack of regulation on e-hailing drivers.
The app merged with its competitor, Grab in 2018 and has since become the country’s largest e-hailing company.
“Before Grab, there was Uber that entered the country around 2014, so the policy couldn’t have come at a better time as people who started way back then could use their vehicles for another 5 years,’’ he said.
However, Azril cautioned of flaws in the policy, particularly on repair costs piling up against drivers who used ageing vehicles.
“Typically e-hailing cars would rack up above 300,000km in mileage after 5 years and the maintenance of the car would climb up from there as vehicle parts eventually break down even with properly scheduled check-ups.
“Cost would rack up as the car ages and the drivers would face the dilemma of either purchasing a new car or using the vehicle until the age limit,” he said, adding that ageing cars could also impact the efficiency of e-hailing services. – The Vibes, April 14, 2023
