This article first appeared in The Edge Financial Daily on June 28, 2018

PUTRAJAYA: Ride-hailing or e-hailing companies like Grab would not be banned but would be subject to existing regulations under the law and given new direction to ensure they operate on a level playing field with traditional taxis, said Transport Minister Anthony Loke.

“There are already laws to regulate the sector but they were never implemented. A new direction and regulation, in addition to the existing laws, will be announced by mid-July after we have fine-tuned it,” he said in a post-cabinet press conference yesterday.

He said a discussion with the Land Public Transport Commission (SPAD) was held yesterday to determine the direction of the ride-hailing companies and licensed taxis after Prime Minister Tun Dr Mahathir Mohamad instructed the ministry to ensure a level playing field in the industry.

“I have asked SPAD to come up with proper directions for both sectors by July. It is our stand that there is a level playing field, and that drivers of e-hailing companies such as Grab and others must be regulated,” he added.

Loke also said there will be a new policy for taxi drivers, urging them to be patient and not threaten the new government with demonstrations as a resolution is under way.

Last year, both Land Public Transport Act 2010 and the Commercial Vehicles Licensing Board Act 1987 were amended to legalise ride-hailing companies and regulate the sector.

Under the amendments, operators of ride-hailing services should possess an intermediation business licence issued by a regulatory body, and that the business licences are renewable but not transferable. Operators who apply for the licence must pay a fee and provide information on their financial status to prove their ability to operate and maintain the business.

“We want to implement the registration of drivers, and [ensure] that fee payments are made. These were not implemented by the previous government [as prescribed by the law], which made taxi drivers angry.

“We hear their demands but we cannot ban the ride-hailing companies. This is our stand because it is against [the] international trend.

“Hence, [we need] to discuss the direction of the industry and announce new guidelines, apart from the amendments [we have made] to the acts, in the next few weeks. We will be fair to everyone,” he added.

Asked if he had met with GrabTaxi Holdings Pte Ltd, which operates the ride-hailing app Grab, Loke said: “They’ve requested to meet me but I haven’t met them yet. I need to finalise our position and then only meet the respective stakeholders, including taxi drivers”.