{
  "id": 16412928,
  "title": "Protect Malaysia’s e-hailing drivers without pricing out passengers",
  "url": "https://urgent.news/2026/10/25/protect-malaysias-e-hailing-drivers-without-pricing-out-passengers-16412928",
  "topic": "world",
  "section": "World",
  "published": "2026-10-25T01:00:00.000Z",
  "source": {
    "name": "Free Malaysia Today",
    "slug": "free-malaysia-today",
    "url": "https://www.freemalaysiatoday.com/category/opinion/2026/10/25/protect-malaysia-s-e-hailing-drivers-without-pricing-out-passengers"
  },
  "original_language": "en",
  "account": "The debate over minimum e-hailing fares in Malaysia goes beyond just the price of a ride; it raises a critical question about how to safeguard drivers' livelihoods without making everyday mobility more expensive for the public. E-hailing has revolutionized transportation in Malaysia, offering convenience, flexible earning opportunities, and vital transport links in areas where public transport is limited. However, the economic reality behind this convenience is often overlooked. Drivers bear the brunt of operational costs, including fuel, maintenance, insurance, financing, and vehicle depreciation, as well as the expenses of travel to and from pick-up points, idle time between bookings, and waiting periods without passengers. These factors are essential considerations, but increasing the minimum passenger fare does not necessarily address these underlying issues. The fare paid by passengers and the earnings of drivers are not directly correlated. For instance, two drivers may complete similar journeys, but one waiting for a longer period could end up earning more after accounting for their expenses and productive hours. This discrepancy underscores that driver welfare cannot be determined solely by individual fares. Instead, it hinges on the driver's earnings after expenses and the total productive hours they manage within a working day. Research into Malaysia's e-hailing economy reveals significant financial pressures on drivers. Using an operating-cost model, running a Perodua Bezza for e-hailing services incurs roughly RM0.40 per kilometre, covering fuel, maintenance, insurance, and vehicle depreciation. While this is an approximate figure, it highlights a critical point: drivers continue to spend money even when they are not carrying passengers. Activities such as traveling to pick-up points, switching between bookings, and waiting for the next ride all affect their actual earnings. Therefore, minimum fare proposals, distance-based tariffs, and time-based compensation need careful evaluation. A uniform national fare formula might benefit some drivers but could disadvantage others, depending on factors like traffic conditions and passenger demand. A one-size-fits-all approach might not be effective across different regions. It is also crucial to consider the passenger perspective. For many Malaysians, e-hailing is a practical mode of transport, especially when public transport is infrequent or inconvenient, such as in the Greater Kuala Lumpur area, where e-hailing is essential for reaching MRT and LRT stations. If this service becomes prohibitively expensive, commuters may revert to alternative modes of transport, like driving or riding motorcycles, or simply travel less. While affordable public transport is vital, it should not come at the expense of drivers. The government should explore targeted subsidies, integrated ticketing, and demand-responsive transit to enhance first- and last-mile connectivity without burdening drivers. A key regulatory question emerges: should Malaysia prioritize setting minimum passenger fares or protecting minimum driver earnings? The Gig Workers Act 2025 offers an opportunity to address this distinction. Through the Gig Workers’ Consultative Council, policymakers now have a platform to deliberate on minimum earnings rates and formulas suitable for various gig work categories. Instead of immediately implementing a fixed passenger fare floor, policymakers should investigate whether minimum driver remuneration, supported by reasonable expense recovery, could offer more direct protection. This approach must also account for unpaid working time, like idle periods without passengers. Additionally, platform accountability is crucial. While Malaysia has commission ceilings for e-hailing services, regulators must ensure transparency in deductions, enforce existing requirements, and educate drivers on how their earnings are calculated. Balancing commission ceilings with platform viability, competition, and passenger prices requires thorough assessment. The regulatory framework surrounding transport, worker protection, and competition oversight involves multiple authorities. Whether Malaysia strengthens existing institutions or creates new regulatory bodies, clear responsibilities and effective enforcement are essential. Establishing another regulatory body will not automatically improve driver earnings if the underlying economic challenges remain unresolved. Before enacting binding fare formulas, Malaysia needs a comprehensive assessment of driver operating costs, actual take-home earnings, unpaid mileage, working hours, platform deductions, and passenger affordability. These findings should inform regulatory decisions, rather than the other way around.",
  "summary": "A successful e-hailing service is one that allows drivers to earn a reasonable return while remaining affordable for passengers.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}