Singapore & Malaysia – Growing marketplaces

All markets are not the same, especially for countries like Singapore and Malaysia. The two growing South Asian giants have introduced monumental changes in their regulations governing the taxi industries. As they are leading tourist destinations and commercial capitals of the world, Singaporean and  Malaysian visitors prefer Uber like apps, renting taxis, or even luxury vehicles for transit purposes. With specially licensed taxis, visitors can travel between the two countries with ease, thus saving on the high travel costs.

Taxi regulations in Singapore

As a global hub for entertainment, education, health-care, finance, innovation, logistics, and much more, Singapore witnessed a record-breaking 18.5 million visitors in the year 2018. To cater to the citizens’ and visitors’ demand for a safer and more reliable taxi service, the government revamped the pre-existing regulations for the taxi industry.

The government of Singapore reviewed the ride-hailing and taxi regulations to prevent a state of monopoly or duopoly of the taxi market. The task was achieved by remolding the industry structure and modifying the licensing process for taxi-drivers and ride-hailing operators. Inorder to startup an on-demand taxi app, it is mandatory to follow these regulations.

Critical areas witnessing revamp:

  • Deregulating the taxi industry

The taxi fare deregulation in the year 1998 allowed taxi companies to set their fares as per the market conditions. In the year 2003, further liberalization allowed entry of newer companies to encourage healthy competition in the industry; thus, benefiting commuters.

  • Maintaining service standards

Taxi companies are required to meet the standards in areas of safety, booking, and driver’s conduct to maintain service quality and protect commuters’ interests.

  • Enhance cab availability 

In 2013, the taxi companies were directed to ensure the availability of 85% of its fleet during peak hours (7 AM – 11 AM and 5 PM – 12 AM) each day. Thus, ensuring cab availability for commuters.

  • Facilitating third-party taxi booking services

With smart applications, third-party taxi booking service providers are expected to efficiently map drivers with commuters by sourcing cabs from more than one taxi-company. In 2014, the regulations required all service providers to comply with numerous conditions such as dispatching only licensed vehicles and drivers, showcasing fare information before the commencement of service, and customer support service for any grievance sharing.

Taxi regulations in Malaysia

A popular destination among tourists, the Southeast Asian country witnessed a staggering 29.5 million visitors in the year 2017. With its growing economy, the land of Malaysia sees a massive shift towards convenient traveling solutions and hence made numerous changes to its existing regulations.

Some of the areas witnessing critical changes:

  • Level playing field

The regulation revamp aimed at leveling the playing field for both conventional taxi drivers and e-hailing drivers. Therefore, ensuring equal opportunities for all involved parties and better convenience for commuters.

  • Vehicle inspection

Annual inspections of taxi vehicles (three years and older) at dedicated computerized vehicle inspection centers, modifying the previously followed twice a year inspection by taxi drivers.

  • Commission

The government of Malaysia set the commission amount passed on to companies at 20% and for taxi drivers using e-hailing apps at 10% (maximum).

  • Special grant

For taxi drivers joining the e-hailing sector, the government offers a special grant of RM 5000 to assist in buying new vehicles. The grant also extends to taxi drivers whose contracts with taxi companies have expired, but intend to remain a taxi driver using their dedicated taxi license.


Leading reports suggest that both Singapore and Malaysia would witness tremendous growth in terms of economy, thus, resulting in surging demand for taxi services. You can enter the lucrative market with a custom and ready-made Uber clone app designed by app development experts of AppDupe. Powered with state-of-the-art features and tailored for the Singaporean and Malaysian markets, witness an instant boom in downloads. With countries’ regulations favoring e-hailing businesses, cater to the growing demand for convenient transit solutions with an Uber clone developed from sophisticated tech.