KUALA LUMPUR, Aug 1 ― There has been a reduction in the registration of new drivers following the Transport Ministry's announcement that e-hailing services will be subjected to the same regulations as taxis.

Grab Malaysia Country Head Sean Goh told reporters after meeting with the Council of Eminent Persons today that the reduction was mainly due to the fact that up to 80 per cent of Grab drivers were part-time drivers.

"To be honest we have seen a reduction in the flow of new drivers signing up for our platform, many are part-time drivers, they are professionals, sales people and office workers earning a supplementary income from Grab,” he said.

"This contributes to 30 per cent of their household income on average, this just about brings people above the M40 status, but the current challenge we see is that people are discouraged to sign up.”

"We hope to alleviate the situation by ensuring changes will be gradual and that drivers will be guided through the changes, in times of uncertainty there is always a slow down in terms of interest,” said Goh.

When asked of the percentage of the decline in drivers, he refused to comment.

Earlier last month, Minister Anthony Loke announced the new regulation that would focus on license registration, vehicle inspection and operational requirements, among others.

Goh added that discussions among industry regulators were being carried out to ensure minimal impact on operation for the driver and the customer.

"Any regulatory change, anything that adds financially or is a time hurdle will reduce the number of drivers in the system, we are conscious of wanting to ensure the same availability today without impacting fares and prices too much,” he said.

"From our early discussions with regulators, we see them being very aware of any potential impact to the cost of living, we will continue to work with them on this, and we have a one year timeline to implement this.”

Goh also said that more than 50 per cent of cars under Grab were more than three years old and that they would work to make the inspection process as smooth as possible when implemented.

He was responding to the ministry announcement that cars above three years old had to go through yearly inspections and register with the Companies Commission or the Cooperatives Commission.

"A substantial amount of our vehicles are above three years old that require inspection, it's very important that the inspection policy is as smooth as possible,” he said.

"When we think about government-runned organisations, we always have the bias that its slow and there are a lot of red tapes, we want to make the process efficient and painless, so we can ensure the car is in good condition and that people are ready to go.”

Goh also said that Grab would focus on providing ample insurance options for drivers with various driving patterns and needs.

"The focus will be on easy and cheap insurance to sign up for, we must make sure there are a few options available,” he said.

"If they are full-time drivers then an upfront insurance policy may be best, we want to advocate for a pay-as-you-go policy for part-time drivers.”

The regulations announced by the ministry were an extension of existing laws that legalised e-hailing services last year.