KUALA LUMPUR, Oct 21 — E-hailing applications Uber and Grabcar are the future of the taxi industry, and taxi drivers have no choice but to adapt to technological advancements and demands within the transportation industry.

Deputy Transport Minster Datuk Ab Aziz Kaprawi told Malay Mail this was the only way forward, and although taxi drivers were against Uber and Grabcar, their services would be legalised in due time.

He said with the newly revealed transportation transformation plan, taxis may no longer be needed and would need to rely on similar apps to remain relevant.

"The government is transforming public transportation to the rail system, which would see taxis only providing their service for the ‘last mile’ to destinations from train stations,” he said.

"To accommodate that, we need a system where the taxi can be called in the simplest way, which is why Uber and Grabcar are popular. So now maybe the taxis can develop the system in Malaysia as a way forward to providing services to the people.”

In March, Malay Mail reported that Ab Aziz advised the Land Public Transport Commission (SPAD) to allow the operation of "mini taxis” — vehicles with engines below 1,500cc.

He said this would be put in place by the middle of next year.

"I told them the people need new products when it comes to public transportation and the chain has to be synchronised with the requirements as well as the rail additions,” he said.

"The government has to think of the lower-income taxi drivers and we have to facilitate them because right now, to buy a taxi is costly due to specifications. It would be more affordable for one to have a mini taxi.”

On Monday, Minister in the Prime Minister’s Department Datuk Nancy Shukri said amendments to the Land Public Transport Act 2010 and Commercial Vehicle Licensing Board Act 1987 would only be tabled in Parliament during the first meeting next year.

SPAD expected the amendments to be tabled at the current meeting to resolve the long-standing dispute between taxi drivers and e-hailing services, which the taxi drivers deemed as illegal.

Ab Aziz said at present, only 16 per cent of Malaysians used public transport, which was considered low.

Countries like Singapore had 62 per cent public transportation usage while Hong Kong had 89 per cent of people using public transport.

"When we look at productivity, Malaysians spend two to three hours on the road. Right now, we want to change the mindset of Malaysians to use public transport to increase their productivity,” he said.