Transport Ministry: Govt keeps RM499 fare cap for Sabah and Sarawak routes, expands FLYsiswa for students

Malaysia's government is examining the 20% commission cap imposed on e-hailing platforms, following pressure from drivers to reduce the rate. The Ministry of Transport revealed that the Land Public Transport Agency (APAD) will conduct a comprehensive review of the current commission rate after engaging with stakeholders and conducting ongoing studies.

This review comes in response to a parliamentary question from Tebrau MP Jimmy Puah Wee Tse, who inquired about the government's efforts to push e-hailing platform Grab to lower its commission rate for drivers, ensuring greater fairness and increased income.

The ministry explained that Grab has introduced a new fare structure under a Proof of Concept (POC) called the Grab Service Fee (GSF). This structure employs flexible commission rates for daily trips, while maintaining a 20% cap for the weekly or monthly average, considering factors like distance, location, travel time, and real-time movement from a passenger's drop-off point to a new pick-up location.

As of May 31, 2026, approximately 170,944 driver-partners had opted into the new GSF structure. The ministry recorded an average GSF of 18% and an effective GSF of 15% under the POC. The ministry added that the average transit-per-minute income of driver-partners who joined the new structure increased by over 6% since the POC began.

Grab regularly updates the status and progress of the POC to the Ministry and APAD. However, the government acknowledged drivers' concerns about lowering the commission rate to improve their income more transparently and fairly. The final review will also take into account the results of ongoing studies by the Transport Ministry and the Human Resources Ministry concerning gig worker compensation, which are expected to be completed this year.