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Government and Grab commit RM160 million support package for e-hailing and p-hailing workers

A RM160 million package announced in Budget 2027 will subsidise insurance, maintenance and earnings for e-hailing and p-hailing drivers, with co-funding from the government and Grab Malaysia.

Budget 2027 unveils a RM160 million support initiative aimed at improving the welfare of e-hailing and p-hailing workers across Malaysia. The scheme, jointly funded by the government and Grab Malaysia, will begin next year and includes subsidies for vehicle insurance, maintenance, and higher minimum earnings rates. PERKESO contributions will also be enhanced, with a 35% matching contribution that could increase to 50% if platform companies contribute.

The package is projected to lift the median net income of e-hailing drivers by as much as RM227 per month and add up to RM100 for p-hailing riders. PRGM highlighted that rising insurance premiums had been a key concern raised in recent talks with Grab. The initiative also extends a 70% PERKESO matching contribution to over 200,000 self-employed individuals in 17 non-mandatory sectors.

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