Madani Taxi Programme Shifts Ownership to Drivers, Ends Traditional Leasing Model
KUALA LUMPUR, July 4 — Malaysia’s National Madani Taxi Renewal Programme will replace the long-standing taxi leasing model with a new ownership structure that allows drivers to own their vehicles directly, marking a significant shift in the country’s taxi industry reforms.
Transport Minister Anthony Loke Siew Fook said the programme introduces a driver-centred financing framework under which taxi operators will retain legal ownership of their vehicles even when purchasing them through approved financing facilities.
Speaking at the launch of the National Madani Taxi Renewal Programme at Dataran Merdeka, Loke said the Ministry of Finance had approved the ownership arrangement as part of efforts to modernise the sector and improve the long-term welfare of taxi drivers.
He said the initiative represents a fundamental departure from previous leasing arrangements that required many drivers to operate vehicles owned by third parties.
Under the new model, drivers purchasing taxis through participating financial institutions will remain the registered owners of their vehicles throughout the financing period.
Loke said this ownership structure is one of the programme’s most important reforms because it allows drivers to build assets rather than simply leasing vehicles to earn a living.
He stressed that although financing remains part of the acquisition process, ownership rights will stay with the drivers instead of fleet operators or leasing companies.
As part of the programme, Proton’s S70 sedan has been selected as the new national taxi model following assessments of its suitability for commercial passenger transport.
According to the minister, the vehicle was chosen based on factors including passenger comfort, safety standards and fuel efficiency, making it suitable for intensive daily operations.
Drivers will also be able to select financing packages that best match their financial circumstances.
The available options include conventional hire-purchase schemes with lower daily instalments as well as financing packages that incorporate vehicle maintenance costs, providing greater flexibility for operators.
Loke acknowledged that access to financing has remained one of the biggest obstacles preventing many taxi drivers from replacing ageing vehicles.
He said numerous drivers had expressed interest in upgrading their taxis but encountered difficulties obtaining bank financing under existing arrangements.
The new programme seeks to address that challenge by introducing financing solutions designed specifically for taxi operators, allowing more drivers to qualify for vehicle loans.
Beyond vehicle replacement, the initiative also introduces a new identity for Malaysia’s taxi industry.
The redesigned taxis will continue to feature the traditional red colour associated with Malaysian taxis but will adopt a more contemporary appearance by removing the conventional rooftop “topper” sign.
They will also be equipped with digital taxi meters and modern technology aimed at improving service quality and passenger convenience.
Loke said the vehicles will not be limited solely to commercial use, allowing drivers to utilise them for personal purposes outside working hours.
The programme also seeks to diversify drivers’ income sources beyond passenger fares.
According to the minister, the government is working with private-sector partners to introduce digital advertising displays inside taxis, creating additional revenue opportunities for operators.
He added that the government’s earlier RM10 million matching grant for replacing older taxis with new Proton vehicles had been fully utilised within three months of its launch in January.
The allocation supported the replacement of approximately 5,000 vehicles, with eligible drivers receiving a RM2,000 discount from Proton together with an additional RM2,000 government contribution, reducing the purchase price of each qualifying vehicle by RM4,000.
Loke said the initiative is intended to accelerate fleet modernisation while increasing public confidence in Malaysia’s taxi services through newer, safer and better-equipped vehicles owned directly by the drivers who operate them.
