What action will the Transport Ministry take against non-compliant firms?

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Stern action will be taken against e-hailing firms operating without a valid licence.

The Transport Ministry has indicated that stern action will be pursued against e-hailing companies found to be operating without a valid licence, particularly those failing to adhere to required permit criteria. This stance follows accusations against a specific company for gross violations of safety and security compliance, including the non-display of driver permits on their application. The ministry has outlined potential legal consequences for such non-compliance.
Failure to display driver permits constitutes a gross violation

An e-hailing company has been accused of operating without a valid licence due to its failure to comply with essential permit requirements. Specifically, the company's e-hailing application did not display the e-Hailing Vehicle Permit of its drivers or allow passengers to identify the ordered drivers through the smartphone app. This omission has been labelled a gross violation of necessary compliance for passenger safety and security.
Company failed to renew its Land Public Transport Agency permit

The company in question failed to renew its Land Public Transport Agency (LPP) permit, which had lapsed on July 14, 2022. As a consequence of this lapse and the alleged non-compliance with operational criteria, the Land Public Transport Agency (APAD) issued a show-cause letter to the company on August 18, 2022. This action signifies an official inquiry into the company's operational status and adherence to regulatory standards.
Significant penalties for operating without a valid permit

Individuals or entities operating an e-hailing service without a valid LPP face substantial penalties if convicted. The potential repercussions include a fine of not more than RM500,000, a jail term of not more than three years, or both. These penalties underscore the seriousness with which the authorities view non-compliance within the e-hailing sector.

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What action will the Transport Ministry take against non-compliant firms?

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