The Malaysian government will invest MYR 10 million (AUD $3.5 million) to modernise the country’s taxi industry through a new vehicle replacement program and upgraded technology.
Teksi Madani
On 3 July 2026, Malaysian Prime Minister Anwar Ibrahim launched the National Madani Taxi Rejuvenation Program. The program aims to enhance the image of Malaysia’s taxi industry and while enhancing the working lives of its drivers.
“The taxi issue is one that has long been raised. It is tied to the hardships of making a living, being left behind by technological changes, and the struggles faced by drivers who have been at a disadvantage,” PM Anwar said.
While taxi drivers may normally earn up to MYR 4,000 (AUD $1,412) per month, this amount may decrease to MYR 2,000 – 3,000 (AUD $706 – 1,059) during slow months.
“Reaching RM5,000 is very difficult. Under this new scheme, by reducing repair and servicing costs and loan repayments, we estimate that taxi drivers can earn RM5,000 to RM7,000 per month. That will allow them to live more comfortably,” PM Anwar explained during his announcement.
Furthermore, existing taxis will be replaced by a fleet of brand-new red Proton S70 vehicles. Taxi drivers will be assisted by financial institutions in a low-interest financing program that will allow them to eventually own the new vehicles.
“I approve an additional RM10mil with immediate effect. This is specifically for taxis and the S70 program,” PM Anwar added. “Every driver receiving a Proton S70 should undergo a new training program. It is not enough to have a new vehicle and a new look – they must also master the new technology.”
Drivers will receive additional training if needed. According to the Prime Minister, officers may visit taxi stands to deliver training on site. He noted that taxi drivers will receive no income if they were to spend a day at a training centre.
The injection of MYR 10 million is part of Malaysia’s Budget 2026, where taxi owners and private-hire vehicle operators will be fully exempt from excise duty and sales tax. This measure aims to encourage taxi and private-hire operators to purchase new locally manufactured vehicles.
New system, new look
PM Anwar highlighted the issue of wealthy individuals’ ownership of taxi vehicles over the drivers.
“We inherited a system that we cannot be proud of. Why were taxi permits given to wealthy individuals while drivers were simply told to earn an honest living? Under the current government, no minister or political leader is given taxi permits,” he said.
Under the new scheme, drivers using the S70 will receive permits directly, bypassing middlemen in their operations.
Finally, PM Anwar reminded taxi drivers to maintain high professional standards and keep their vehicles clean. The Prime Minister believes that an individual’s taxi ride from the airport to their accommodation may affect their image of Malaysia.
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