KUALA LUMPUR, July 3 (Bernama) -- Prime Minister Datuk Seri Anwar Ibrahim today announced an additional RM10 million allocation for the Vehicle Replacement Matching Grant Programme to help taxi drivers replace ageing vehicles.
Anwar, who is also the Finance Minister, said the additional funding follows the encouraging response to the initial RM10 million allocation for the National MADANI Taxi Reform Programme, announced in Budget 2026.
He said the government has also reached an agreement with Proton and the Transport Ministry to develop a dedicated financing scheme enabling taxi drivers to own the Proton S70.
“The response to the allocation announced in the Budget has been very encouraging. Given the importance of the taxi industry, I have approved an immediate additional RM10 million specifically for taxi reform,” he said at the launch of the National MADANI Taxi Reform Programme at Dataran Merdeka today.
Also present were Transport Minister Anthony Loke, Minister in the Prime Minister's Department (Federal Territories) Hannah Yeoh and Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar.
Meanwhile, the Prime Minister said the government remains committed to strengthening the taxi industry through improvements to the existing system to safeguard drivers' welfare in line with technological change and the evolving transport landscape.
He said issues affecting the taxi sector are not only linked to drivers’ livelihoods but also to technological shifts that have left the industry behind, as well as the fact that many drivers are now older.
Anwar said the government had inherited a weak system, including the practice of issuing taxi permits to companies or individuals rather than directly to drivers.
“One of the issues raised over decades is why permits are not given directly to drivers so that they become owners and earn a good halal income,” he said.
The Transport Ministry, he noted, is currently reviewing various approaches to improve the system and help taxi drivers and the industry adapt to technological developments.
Anwar also urged local authorities to provide more comfortable holding areas for taxi drivers while waiting for or picking up passengers.
On the National MADANI Taxi Reform Programme, he expressed confidence that the initiative could increase drivers’ net income to as much as RM7,000 per month, taking into account savings from maintenance services and vehicle financing arrangements.
The programme features the Proton S70 as the designated taxi model, selected for its suitability in terms of safety, comfort and fuel efficiency.
The approach aligns with the government’s efforts to promote the use of modern, higher-quality taxis to improve public confidence in the service.
To support the programme, DRB-HICOM Group, through EON-Avis, together with financial institutions, is offering financing options to help taxi drivers transition to new vehicles based on their needs and affordability.
He said the government has also reached an agreement with Proton and the Transport Ministry to develop a dedicated financing scheme enabling taxi drivers to own the Proton S70.
“The response to the allocation announced in the Budget has been very encouraging. Given the importance of the taxi industry, I have approved an immediate additional RM10 million specifically for taxi reform,” he said at the launch of the National MADANI Taxi Reform Programme at Dataran Merdeka today.
Also present were Transport Minister Anthony Loke, Minister in the Prime Minister's Department (Federal Territories) Hannah Yeoh and Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar.
Meanwhile, the Prime Minister said the government remains committed to strengthening the taxi industry through improvements to the existing system to safeguard drivers' welfare in line with technological change and the evolving transport landscape.
He said issues affecting the taxi sector are not only linked to drivers’ livelihoods but also to technological shifts that have left the industry behind, as well as the fact that many drivers are now older.
Anwar said the government had inherited a weak system, including the practice of issuing taxi permits to companies or individuals rather than directly to drivers.
“One of the issues raised over decades is why permits are not given directly to drivers so that they become owners and earn a good halal income,” he said.
The Transport Ministry, he noted, is currently reviewing various approaches to improve the system and help taxi drivers and the industry adapt to technological developments.
Anwar also urged local authorities to provide more comfortable holding areas for taxi drivers while waiting for or picking up passengers.
On the National MADANI Taxi Reform Programme, he expressed confidence that the initiative could increase drivers’ net income to as much as RM7,000 per month, taking into account savings from maintenance services and vehicle financing arrangements.
The programme features the Proton S70 as the designated taxi model, selected for its suitability in terms of safety, comfort and fuel efficiency.
The approach aligns with the government’s efforts to promote the use of modern, higher-quality taxis to improve public confidence in the service.
To support the programme, DRB-HICOM Group, through EON-Avis, together with financial institutions, is offering financing options to help taxi drivers transition to new vehicles based on their needs and affordability.