KUALA LUMPUR – The Malaysian P-Hailing Riders Association (Penghantar) has expressed its full support for the Transport Ministry’s firm stance against non-compliant e-hailing companies, calling for authorities to extend enforcement across the entire e-hailing and p-hailing ecosystem operating in the country.
In a statement, the association thanked Transport Minister Anthony Loke for confirming the status of Russian e-hailing platforms inDrive and Maxim, which have been ordered to cease operations in Malaysia for flouting existing regulations.
“This is not the first time such offences have occurred. For example, the EHO inDrive was previously penalised by the Land Public Transport Agency (Apad) for its failure to comply with existing laws. Even during the suspension period, they continued operating using alternative methods, which clearly constitutes an act of defiance and a violation of the rule of law,” the group said.
The minister’s confirmation, Penghantar said, has brought much-needed clarity to the many drivers under both companies, allowing them to better plan their next steps if they intend to continue offering e-hailing services.
“Our concerns have proven to be valid when YB Tuan Anthony Loke confirmed that both companies had failed to comply with regulations under the existing law. This includes their failure to ensure all drivers possessed a valid PSV licence, which in turn compromises passenger safety and undermines the law.
“To us, all parties involved must uphold the laws that have been enforced.”
Yesterday, Anthony confirmed that termination letters had been issued to inDrive and Maxim for failing to meet core licensing requirements — including the failure to ensure all operating vehicles held valid e-Hailing Vehicle Permits (EVPs) under their Intermediation Business Licence (IBL).
“Effective July 24, inDrive and Maxim must cease operations in this country,” he said, adding that while the companies may appeal, “the final decision rests with me as transport minister.”
This confirms a Scoop report published Thursday, which revealed that Maxim’s IBL was revoked following an April 21 meeting of the Licensing Suspension and Termination Committee under the Land Public Transport Agency (Apad). A similar notice was issued to inDrive on April 24.
Both firms were also found to have repeatedly allowed drivers to operate without valid EVPs and Public Service Vehicle (PSV) licences, a breach of Malaysian transport law under the Land Public Transport Act 2010. According to Apad, the offences fall under Section 12D(1)(a) of the Act, which empowers the agency to revoke operating licences. Affected companies must return their IBL documents to Apad regional offices within 14 days.
Penghantar also warned that the situation was deeply unfair to law-abiding drivers and could have a detrimental impact on the broader e-hailing industry.
“This situation is not only unfair to drivers who comply with existing laws and regulations, but also negatively affects the e-hailing industry as a whole, especially for drivers who truly adhere to all legal requirements.”
Penghantar further alleged that some drivers registered under the affected platforms were handing over their services to foreign nationals, particularly in Sabah.
“This ‘Ali Baba’ practice not only reduces the income of local drivers, but also exposes passengers to serious safety risks,” the group said, urging enforcement authorities to take immediate and stern action against PSV licence holders who abuse their licences by outsourcing their services to foreigners.
The association also called on the government to strengthen regulations governing the gig economy, particularly within the e-hailing and p-hailing sectors.
“Penghantar Malaysia also urges the government to empower the legal framework for the Gig Industry in Malaysia, especially the E-Hailing and P-Hailing Sectors, based on the structure of this industry. This must involve all stakeholders and cover the entire industry ecosystem.”
The group pointed to the proposal by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi for the establishment of the Malaysia Gig Economy Commission (SEGiM) as a promising step forward.
“It is to ensure that every piece of legislation is balanced for all involved parties, including the impact of implementation and enforcement,” it said.
“We do not want any new legislation to be ineffective in resolving issues in the industry but instead burdensome, especially for us providing e-hailing and p-hailing services.” – May 10, 2025