Malaysia announced today that it has legalised ride-sharing after its parliament passed two bills, allowing ride hailing services companies Grab and Uber to operate on an "intermediation business license”.
The changes to the country’s Land Public Transport Act and the Commercial Vehicles Licensing Board (CVLB) Act means the bills will regulate "the business of facilitating arrangements, bookings or transactions of an e-hailing vehicle whether for any valuable consideration or money’s worth or otherwise.”
The two companies were previously deemed as “illegal operations” by CVLB and this latest move comes as taxi drivers in the country protest the decision made by Prime Minister Najib Razak's Cabinet.
Neighbouring country Singapore passed similar laws in February, in a bid to regulate the ride-hailing industry.
Earlier this month, Grab announced that it expects to raise around US$2 billion (S$2.7 billion) from its Chinese peer Didi Chuxing and Japan's SoftBank Group Corp