From Convenience To Chaos The Unseen Struggles Of Malaysia S E Hailing Drivers

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From Wan Agyl Wan Hassan
Malaysia’s e-hailing industry has become such a big part of our daily life that it’s hard to imagine how we got around before Grab, Maxim, or inDrive came along.
Whether it’s heading to work, a late-night mamak session, or rushing to the airport, these platforms have made getting around easier and more convenient.
But behind the scenes, the industry is facing some serious issues. Regulations that were meant to support and organise the sector are now holding it back, putting drivers under pressure and making things harder for everyone involved.
It’s time for the government to take another look at these policies before the industry comes to a complete stop.
When the government introduced regulations like the Land Public Transport (Amendment) Act 2017, it seemed like a step in the right direction.
Safety rules, like requiring drivers to get public service vehicle (PSV) licences, annual vehicle inspections, and e-hailing insurance, helped legitimise the industry and built public trust.
People felt safer using e-hailing services, and it also levelled the playing field between ride-hailing platforms and traditional taxis.
But as well-intentioned as these regulations were, they’ve ended up creating a lot of problems — especially for the drivers who keep this industry running.
For part-time drivers, who make up a large chunk of the workforce, the costs of complying with regulations are just too high.
Getting a PSV licence, paying for training, and going through health checks and vehicle inspections can set a driver back around RM750 a year.
Even with subsidies from companies like Grab, it’s still a heavy burden.
It’s therefore no surprise that up to 10 drivers quit the industry every day, according to reports.
By mid-2019, only a fraction of Malaysia’s 167,000 drivers managed to meet all the PSV requirements.
This has led to longer wait times and higher fares for passengers. For a service that relies on having enough drivers to meet demand, this is a major red flag.
The challenges don’t stop there. Many drivers feel the pinch of fare structures that don’t match the time and effort they put in.
Imagine spending 30 minutes on a trip only to earn RM4. On top of that, drivers have to deal with rising fuel costs, traffic jams, and high platform commissions that can go up to 25%.
To make matters worse, the dominance of big players like Grab is squeezing out smaller competitors, reducing options for drivers and passengers alike.
Without stronger rules to promote fair competition, innovation in the industry will be stifled.
When we compare Malaysia to other countries, it’s clear that there’s room for improvement.
In Singapore, ride-hailing platforms are required to offer options for families with young children or wheelchair users, making the service more inclusive.
Estonia has introduced flexible licensing rules that are friendlier to part-time drivers.
In the UK, the government even gives grants to encourage the adoption of electric vehicles in ride-hailing services.
These countries show that it’s possible to regulate the industry in a way that supports drivers, protects passengers and encourages innovation — all at the same time.
To move forward, we need a regulatory framework that works for everyone — drivers, passengers, and operators.
The government should consider simplifying compliance requirements and fully subsidising costs for part-time drivers.
Introducing minimum earnings guarantees and making Socso and EPF contributions mandatory could give drivers a more stable and secure livelihood.
At the same time, anti-monopoly laws should be enforced to create a fair playing field, allowing smaller operators to survive and innovate.
And with Malaysia’s push for sustainability, why not offer tax breaks for e-hailing companies that adopt green technologies like electric vehicles?
Malaysia’s e-hailing industry still has massive potential. It is projected to generate US$510 million (RM2.29 billion) in revenue by 2025, and for many Malaysians, it is an essential part of daily life.
But to unlock that potential, we need urgent action.
The government must work with all stakeholders to revisit these regulations and create policies that reflect the realities of the industry.
This isn’t just about fixing problems — it’s about future-proofing a service that has become a lifeline for so many of us.
If we don’t act now, we risk losing the benefits that this industry has to offer — not just for drivers and passengers, but for the economy as a whole.
It’s time to rethink, revise, and rebuild. Malaysia deserves an e-hailing industry that doesn’t just survive but thrives, driving us all toward a better, more connected future. - FMT
Wan Agyl Wan Hassan is the founder of MY Mobility Vision, a transport think tank. He is also an FMT reader.
The views expressed are those of the writer and do not necessarily reflect those of MMKtT.

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