Why did the government add RM10 million after Budget 2026?

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Government Increases Funding for Taxi Vehicle Replacement Programme

The government has allocated an additional RM10 million to the Vehicle Replacement Matching Grant Programme to support taxi drivers in replacing their older vehicles. This decision was prompted by the positive reception to the initial RM10 million provided for the National Madani Taxi Reform Programme, which was announced in Budget 2026. The Prime Minister, Datuk Seri Anwar Ibrahim, approved this supplementary funding specifically to advance taxi reform initiatives.
Encouraging Response to Initial Allocation

The initial RM10 million provided under the National Madani Taxi Reform Programme, as part of Budget 2026, has garnered a highly encouraging response. This positive reception indicated a significant need and demand for support within the taxi industry for vehicle upgrades. The success of the initial funding led to the consideration and approval of further financial assistance.
Focus on Taxi Reform

The additional RM10 million has been specifically earmarked for taxi reform efforts. This targeted allocation underscores the government's commitment to improving the taxi sector, addressing the challenges faced by drivers with ageing fleets, and enhancing the overall quality of taxi services. The Prime Minister's direct approval highlights the importance placed on this initiative.
Development of Dedicated Financing Scheme

Beyond the grant programme, an agreement has been reached between Proton and the Ministry of Transport to create a dedicated financing scheme. This scheme aims to facilitate taxi drivers' ownership of the Proton S70 model. The development of such a scheme further demonstrates a multi-faceted approach to modernising the taxi fleet and supporting drivers financially.

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Why did the government add RM10 million after Budget 2026?

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