Post by : Shakul

Malaysia has announced an additional RM10 million allocation for the Vehicle Replacement Matching Grant Programme to help taxi drivers replace ageing vehicles. Prime Minister Datuk Seri Anwar Ibrahim made the announcement during the launch of the National Madani Taxi Reform Programme at Dataran Merdeka in Kuala Lumpur.

The Prime Minister said the additional funding follows the strong response to the initial RM10 million allocation announced under Budget 2026. The government believes the expanded support will encourage more taxi drivers to modernize their vehicles and improve passenger services.

Proton S70 Financing Scheme Announced

Anwar also confirmed that the government has reached an agreement with Proton and the Ministry of Transport to introduce a dedicated financing package for taxi drivers wishing to own the Proton S70 sedan.

The proposed financing scheme is expected to make vehicle ownership more affordable, allowing drivers to gradually replace older taxis with modern, safer, and more fuel-efficient vehicles. Officials said further details on the financing package will be announced after implementation plans are finalized.

Why did Malaysia increase the taxi replacement fund?

The Malaysian government increased the Vehicle Replacement Matching Grant Programme by an additional RM10 million after receiving an encouraging response from taxi operators. The objective is to help drivers replace ageing vehicles, improve service quality, increase road safety, and strengthen the long-term sustainability of the country's taxi industry.

What is the Proton S70 financing scheme for taxi drivers?

The Proton S70 financing scheme is a government-supported initiative being developed in partnership with Proton and the Ministry of Transport. It aims to provide taxi drivers with affordable financing options so they can purchase new Proton S70 vehicles with manageable repayment plans, reducing the financial burden of vehicle replacement.

Government Plans Wider Taxi Industry Reform

Speaking at the event, Anwar said the government remains committed to improving the taxi industry by modernizing regulations and adapting the sector to technological changes. He acknowledged that many taxi drivers have struggled with declining incomes and increasing competition from newer transport services.

He added that strengthening the taxi industry is not only important for drivers' welfare but also essential for maintaining reliable public transportation services throughout the country.

Permit System Under Review

The Prime Minister also highlighted long-standing concerns over Malaysia's taxi permit system. He noted that permits have traditionally been issued to companies or third parties instead of individual drivers, limiting drivers' ability to become vehicle owners.

According to Anwar, the Ministry of Transport is currently reviewing several policy options that could provide drivers with greater ownership opportunities while improving the overall structure of the taxi industry.

Read Also:  Malaysia fraud losses surge to RM2.7b

Industry Expected to Benefit

Transport industry observers believe the additional funding and planned financing programme could accelerate the replacement of older taxis across Malaysia. Modern vehicles are expected to reduce operating costs, improve fuel efficiency, enhance passenger safety, and increase public confidence in taxi services.

The government said it will continue working with transport agencies and industry stakeholders to ensure the reforms deliver long-term benefits for both taxi operators and commuters.

#Malaysia News #Business & economy #Asia Travel #Investment