The taxi industry is one that is decades old, which has planted itself as an integral part of the Malaysian public transport system - usually as a means of direct transit from point A to point B, or otherwise as last-mile connectors in conjunction with other means of public transport such as buses or trains.
Over the years however, the system under which Malaysia's taxi drivers have operated - namely the taxi operation/leasing model, or more commonly known as the “pajak” system - has been identified as something that would be detrimental to the system as a whole in the long run.
The system involves taxi drivers leasing a vehicle and/or a permit which allows the driver to offer a taxi service, with the taxi driver paying an amount in rent to the owner of the permit who usually owns it through a holding company.
This has been described as a form of "modern slavery" by none other than our own prime minister, Najib Abdul Razak, who had made the comment in June 2012 and promised a revamp of the taxi system through the abolition of the permit monopoly by a few companies. The system is still in place now four years later in 2016.
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