Malaysia’s House of Representatives passed a series of bill amendments that will allow ride-hailing services to operate legally

Ride-hailing operators such as Grab and Uber can now legally operate their services in Malaysia.

Yesterday, Malaysia’s House of Representatives (Dewan Rakyat) passed a series of amendments to the Land Public Transport Act 2010 and the Commercial Vehicles Licensing Board (CVLB) Act 1987 to regulate these businesses.

The Land Public Transport Act 2010 covers transportation laws in the Malaysian Peninsula states while the CVLB Act 1987 covers transportation laws in the East Malaysian states of Sabah and Sarawak.

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The amendments will have to go through Malaysia’s Senate (Dewan Negara) and receive the Royal Assent from Malaysia’s Monarch to get gazetted before it can be enforced, according to a report by The Star.

Under the amendments, vehicles used by the ride-hailing services will be classified as public service vehicles. The operators will also need to obtain an intermediation business licence issued by the Land Public Transport Commission (SPAD). This license will be renewable but not transferrable.

By bringing these ride-hailing services under official government legislations, passengers and drivers will now be able to report any issues or grievances to the state agencies (SPAD and CVLB).

The Malaysian government could also level the playing field for all ride-hailing and taxi-hailing services by way of enforcing stringent regulatory measures. These could include mandatory vehicle inspections, medical checkups, insurance coverage and driver permits similar to Singapore’s Private Hire Car Driver Vocational License (PVDL).

The ride-hailing services will have one year to comply with these laws before they are enforced.

In the past, Grab and Uber were subjected to harassment by disgruntled taxi drivers who felt that they were encroaching on their businesses.

The new amendments will make it illegal for anyone to obstruct or assault ride-hailing operators. Those found guilty will have to pay RM 1,000 (US$233) or face imprisonment of up to three months, or both.

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Image Credit: Grab

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