Cabbies can register to be their own boss from next month
KUALA LUMPUR: Taxi drivers who have fully paid off their taxis bought under existing hirepurchase models can start registering with the Land Public Transport Commission (SPAD) next month to begin their journey towards being “their own boss”.
This is one of the measures under the Taxi Industry Transformation Programme (TITP) that received Cabinet approval earlier this month.
“Taxi drivers who have no more commitment to their taxi companies can sign up with us to begin the process of applying for individual taxi permits,” said SPAD chief executive officer Mohd Azharuddin Mat Sah.
The move to offer individual licences will free tens of thousands of taxi drivers from the shackles of being bound by what SPAD describes as “lopsided” agreements with taxi companies.
When a taxi driver signs a hirepurchase agreement for a Persona taxi, he pays anything between RM60 and RM80 in rental each day for five years, with no “rentfree days” at all.
At RM60 per day, the hirer will end up paying RM108,000 for a Persona, which is about twice its price.
“Should the hirer wish to continue as a taxi driver after owning the taxi, he would still need to pay RM30 a day to any taxi company as he needs to make use of the company’s operating licence, which works out to RM900 per month,” said Azharuddin.
Other TITP goodies on the way include “seed money” of RM5,000 to help these drivers buy a new car – not necessarily a Proton – provided the vehicle has at least a threestar rating under the Asean New Car Assessment Programme (NCAP).
These two initiatives under the TITP are expected to provide a measure of relief to many taxi drivers here as up to 63% of their taxis are under hirepurchase agreements, also popularly called pajak.
However, the issuance of individual licences as well as the disbursement of the RM5,000 subsidy will take at least a few months to be realised as there are still administrative and regulatory matters to be sorted out with various stakeholders.
“The issuance of individual licences is not automatic,” said Azharuddin.
He added that SPAD would examine each applicant’s track record with the police, Road Transport Department and other authorities.
Taxi drivers who have no more commitment to their taxi companies can sign up with us to begin the process of applying for individual taxi permits. Mohd Azharuddin Mat sah
And while the Government has in principle approved RM150mil for new vehicle subsidies, things still need to be sorted out with the Finance Ministry and financial institutions on the disbursement mechanism.
When all procedures are firmly in place, a taxi driver who has no further contractual obligations with any taxi company only needs to pay no more than RM250 for his individual permit.
“We want to help drivers buy new cars so that they know there will be a way out for them. Ultimately, SPAD is giving drivers a choice,” said Azharuddin, adding that further details would be announced next month.