The recent announcement by Malaysia’s Minister of Transport, YB Anthony Loke, that global e-hailing services inDrive and Maxim must cease operations by 24 July 2025 has sparked significant concern from the Persatuan Transformasi Pengangkutan Awam Darat (TPAD). The association, which represents the interests of local transport operators and drivers, voiced its concerns over the potential socioeconomic impact of this directive. While TPAD acknowledges the government’s role in regulating the transport sector to ensure public safety and order, they argue that such regulatory actions must be accompanied by clear public communication and thorough, data-driven assessments.
A key issue raised by TPAD is the role of services like inDrive and Maxim in providing flexible, driver-friendly commission models that have allowed many drivers, particularly those in smaller towns and rural areas, to earn a sustainable livelihood. inDrive’s notably low commission rate, which is the lowest in the Malaysian market, has allowed drivers to retain a greater portion of their earnings, making the platform a preferred choice for many.
Nathan Mathivanan, President of TPAD, emphasized the importance of these services for local drivers, stating, “For many, this has translated into more sustainable livelihoods, especially in smaller towns and rural areas.” This raises concerns about the potential consequences of reducing market competition. With fewer operators in the market, drivers could face reduced earning potential, while passengers might experience higher fares or a decline in service quality due to diminished competition.
TPAD also highlighted the lack of a formal pricing system in Malaysia’s e-hailing sector, a key factor that could exacerbate pricing disparities in the absence of multiple competitive platforms. “Other countries have adopted government-recommended price tariffs to ensure fairness and transparency for e-hailing users,” TPAD noted. Without a similar system in Malaysia, the reduction in operators could lead to higher fares and less competitive services, ultimately undermining affordability for the public.
In light of these concerns, TPAD has called for several actions to ensure a fair and sustainable e-hailing landscape in Malaysia. These include:
- A clear explanation from the Ministry of Transport and the Land Public Transport Agency (APAD) regarding the legal and regulatory rationale behind the cease orders.
- An examination by the Malaysian Competition Commission (MyCC) to assess whether the directive could lead to anti-competitive market conditions.
- A comprehensive review by policymakers to evaluate the long-term impact of such decisions on driver welfare, service accessibility, and fare affordability for passengers.
For TPAD, the issue at hand is not just one of regulatory compliance, but also one that touches on the daily mobility needs of Malaysians and the economic well-being of thousands of drivers. As such, TPAD has expressed its commitment to working collaboratively with government agencies, industry stakeholders, and civil society to ensure that the evolution of Malaysia’s e-hailing sector remains inclusive, fair, and responsive to the needs of both drivers and passengers.
By taking these steps, Malaysia can create a more transparent and sustainable e-hailing market that benefits everyone involved.
