RM1,000 aid to ease cost pressures on taxi, rental car drivers

GEORGE TOWN: The government is stepping up efforts to help taxi and rental car drivers cope with rising operating costs and stiff competition, including a one-off RM1,000 aid for eligible drivers nationwide.

Transport Minister Anthony Loke said the government recognised the challenges faced by drivers, particularly rising spare parts prices and the cost of living, and was pursuing further measures to support the industry.

"We know taxi drivers face various challenges, including rising vehicle spare parts costs and the cost of living.

"While RM1,000 may not solve all their problems, at least it can help ease their financial burden," he said at the one-off aid distribution ceremony held at Dewan Sri Pinang today.

The assistance, introduced under the 2027 Budget, will benefit about 38,000 taxi and rental car drivers and 15,000 school bus drivers nationwide.

Loke said the government had decided to distribute the aid immediately, without waiting for the Budget to be passed, following a directive from Prime Minister Datuk Seri Anwar Ibrahim.

He said the initiative was funded by RM91 million raised through the auction of special vehicle registration numbers beginning with the letter H, traditionally associated with taxis.

Nearly 700 drivers attended the ceremony in Penang, the first distribution event outside Putrajaya.

Recipients received Bank Simpanan Nasional vouchers redeemable for RM1,000 in cash from Monday.

Those who did not receive vouchers would have the money transferred into their bank accounts within one to two weeks.

Eligible drivers must hold valid driver's cards, with no additional application required.

Loke said the Transport Ministry was also working with Proton to help drivers replace ageing vehicles through a financing scheme, with measures to reduce costs and financing from Aeon Bank at reasonable rates.

He urged drivers to upgrade their vehicles where possible and improve safety, comfort and service standards to remain competitive and maintain passenger confidence.

Penang's growing tourism sector could offer further opportunities, he said, with the expansion of Penang International Airport expected to increase annual passenger capacity from 6.5 million to 12 million upon completion.

Loke said the government hoped the cash assistance and longer-term initiatives would help drivers manage immediate financial pressures while strengthening the industry's competitiveness.