KUALA LUMPUR, March 30 — The Transport Ministry and Land Public Transport Commission (SPAD) are working on a comprehensive plan to regulate the taxi industry.
Deputy Transport Minister Aziz Kaprawi said they had decided to create a new model called Taxi Network Operator (TNO) to be presented to the Cabinet by the end of the year.
It will be based on the current needs and requirements of the industry besides introducing a new product called the mini taxi service.
Aziz said the Road Transport Department had agreed the law would be amended to allow mini taxis below 1,500cc to operate.
“Budget taxis will be given the first chance to migrate to the mini taxi service. Lower engine capacity cars will operate as feeders with a lower rate,” he said, adding that smaller cars required cheaper maintenance.
He said next year would see another 50 new LRT stations which would create a vacuum to transport commuters the last mile.
“With the completion of the rail system, there will be calls for taxis to service the short routes which don’t need large taxis,” he said.
“When you take the train and pay only about RM2, you don’t want to pay a RM3 flag-off rate in a regular taxi. The mini taxis will reduce the cost of transportation.”
Aziz said SPAD was looking at limiting the mini taxis to smaller zones.
“We were rigid about taxis but now we will open up and allow smaller vehicles to get involved,” he said.
“We don’t want a rigid system. We don’t want people to shy away from train networks. The feeder bus system is also not the most convenient option for many because of its timing.”
He said the taxi industry needed to be more competitive and technology-savy.
“If you want to compete, you have to adapt to current technology. SPAD will help them adapt to technology and do it in such a way so that every taxi will have its own network,” he said.
On motorised three-wheelers, Aziz said RTD felt they were dangerous.
He said the government wanted to encourage more people to use public transportation rather than private cars.
On yesterday’s protest by taxi drivers in Jalan Bukit Bintang, he said there was no need for them to jump the gun on the issue of competition from Uber and GrabCar drivers.
Aziz said although Uber and GrabCar operations were illegal, the authorities cannot crack down on them as there were loopholes in the law.
He said Uber and GrabCar were still operating illegally as the government had not legalised them.
“The ministry will never victimise budget taxi drivers to make way for this new generation of services,” he said.
“We are not taking sides. Yes, we spoke about regulating the two services but not by victimising any party,” he said.
