Why is RM10 million more allocated for taxi vehicle replacement?

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An Additional RM10 Million Allocated for Taxi Vehicle Replacement to Address Encouraging Response and Facilitate New Vehicle Ownership

An additional RM10 million has been allocated for the Vehicle Replacement Matching Grant Programme to support taxi drivers in replacing their older vehicles. This increased funding follows a positive reception to the initial RM10 million designated for the National Madani Taxi Reform Programme, first announced in Budget 2026. Furthermore, a specific financing scheme is being developed in collaboration with Proton and the Ministry of Transport to enable taxi drivers to acquire the Proton S70.
Encouraging Response to Initial Funding

The government's decision to provide further financial assistance stems from the overwhelmingly positive feedback received for the initial RM10 million allocation. This initial sum was part of the National Madani Taxi Reform Programme introduced in Budget 2026. The strong uptake and positive engagement with the existing programme have demonstrated a clear need and a high level of interest among taxi operators for such initiatives.
Facilitating the Proton S70 Financing Scheme

Beyond the direct grant, a significant development is the agreement reached between Proton, the Ministry of Transport, and the government. This collaboration aims to establish a dedicated financing scheme. The purpose of this scheme is to make it more feasible for taxi drivers to purchase the Proton S70 model, thereby encouraging the adoption of newer, potentially more efficient vehicles.
Commitment to Taxi Industry Reform

The Prime Minister, Datuk Seri Anwar Ibrahim, highlighted the importance of the taxi industry when announcing the additional RM10 million. His approval of this immediate extra funding specifically for taxi reform underscores the government's commitment to addressing the needs of this sector. The initiative is designed to directly benefit taxi drivers by easing the financial burden associated with vehicle upgrades.

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Why is RM10 million more allocated for taxi vehicle replacement?

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