DRIVERS of e-hailing service providers like Uber and Grabcar must now get an “intermediation business licence” from relevant regulatory bodies, the government said.

The licenses will be issued by the Land Public Transport Commission (Spad) in penin­sular Malaysia and the Commercial Vehicles Licensing Board (CVLB) in Sabah and Sarawak.

Minister in the Prime Minister’s Department Nancy Shukri, who oversees Spad, said the business licences are renewable but operators could not transfer or reassign them, The Star reported.

Operators must pay a fee and provide their financial status details to show they are able to run and maintain the intermediation business.

The amendments to the Land Public Trans­port Act 2010 and Commercial Vehicles Licensing Board (CVLB) Act 1987 to legalise e-hailing services were passed at the Dewan Rakyat yesterday.

They defined the vehicles as public service vehicles with a minimum seating capacity of four persons and not more than 11 people, including the driver, for any journey for single or separate fares, with a booking made through a mobile app.

Under Section 26A(1) of the CVLB Act, e-hailing service operators must have an intermediation business licence to operate and comply with the conditions set under the Act, including the type of service provided, measures to safeguard the safety and security of passengers, and a standard of performance that e-hailing companies have to comply with.

The amendments also made it an offence for anyone to assault, hinder or obstruct those involved in e-hailing services. Those convicted are liable to a fine of RM1,000, jail not exceeding three months or both.

Like conventional taxi drivers, e-hailing operators will also have to send their vehicles for periodic checks, go for health screenings and take up insurance policies.

With the Dewan Rakyat’s approval, the amendments must now go through the Dewan Negara and then receive royal assent before they can come into force. Nancy said the government the amendments could be implemented within a year of gazettement.

Nancy said the Taxi Industry Transformation Plan and the amendments would benefit taxi drivers, consumers and e-hailing drivers, denying claims that they were to protect the interests of large e-hailing corporations.

“The allegations are baseless since the results of studies and stakeholder consultations have ensured that everyone will benefit,” she reportedly said.

Nancy also said there would be no change to the current regulations for taxi drivers, as suggested by some MPs, to help them compete with e-hailing services. – July 28, 2017.