PM Anwar Announces RM10M Boost for Madani Taxi Renewal & Proton S70 Financing

The Malaysian government is taking major steps to modernize the local transportation sector with the launch of the National Madani Taxi Renewal Programme. In a recent announcement on July 3, 2026, Prime Minister Datuk Seri Anwar Ibrahim allocated an additional RM10 million matching grant to help taxi drivers replace their ageing vehicles.

This move effectively doubles the initial allocation announced during the Budget 2026 tabling, which saw overwhelming demand from drivers seeking to upgrade their fleets and livelihoods. The initiative is set to redefine the Malaysian taxi industry, replacing legacy systems with modern technology, fairer licensing laws, and fresh vehicles.

The Proton S70 as the New Face of Malaysian Taxis

As part of the programme, the Proton S70 Premium has been selected as the official vehicle for local taxi operators. Rather than the traditional red-and-white colour scheme, the new fleet will retain the factory Ruby Red paint job.

The aesthetic upgrade also removes the traditional rooftop taxi sign, replacing it with an LED digital display located on the windscreens. Furthermore, the new models will feature the JPJePlate system, digital meters, and a dedicated "GET" (Gabungan E-Hailing dan Teksi) registration number series. Transport Minister Anthony Loke noted that the selected model provides the necessary safety, passenger comfort, and fuel efficiency required for daily operations.

Financial Support and Tax Exemptions for Drivers

The financial mechanics of the programme offer substantial relief to drivers. Participants are entitled to a 100 percent exemption on excise duty and sales tax. This significantly lowers the vehicle cost, bringing the on-the-road price of the Proton S70 down to approximately RM64,500.

In addition to tax cuts, eligible owners who scrap their old vehicles can receive up to RM4,000 in trade-in support, funded equally by the government and Proton. To facilitate New Vehicle Purchases, selected financial institutions are providing zero-interest and low-interest financing models.

Ending Permit Monopolies

A significant policy shift within this initiative is the permanent tying of taxi permits directly to the drivers. Historically, large corporations and affluent individuals monopolized permits, forcing drivers to rent them under unfavourable terms.

Under the new regulatory framework, taxi companies and corporate entities are explicitly barred from applying. This ensures that drivers maintain full ownership of their livelihood, providing them with occupational security and the opportunity to increase their net income to an estimated RM5,000 to RM7,000 per month.

Key Facts

• An additional RM10 million has been allocated to the vehicle replacement matching grant.
• The Proton S70 Premium is the official vehicle, priced at roughly RM64,500 after tax exemptions.
• Traditional taxi toppers have been replaced with LED digital signage and digital meters.
• The matching grant provides up to RM4,000 in trade-in support for upgrading drivers.
• Individual taxi permits are now strictly issued to drivers, blocking corporate monopolies.

What People Are Asking

• How to apply for the Madani Taxi Renewal Programme in Malaysia 2026?
• Applications and detailed eligibility requirements can be found on the official Land Public Transport Agency (APAD) website. Drivers must possess a valid driving licence and Public Service Vehicle (PSV) certification.
• What is the price of the Proton S70 taxi?
• Thanks to a 100 percent exemption on excise duty and sales tax under Budget 2026, the vehicle is priced at approximately RM64,500 for eligible drivers.
• Do drivers own the vehicle under the new scheme?
• Yes. The programme completely abandons the old leasing system. Selected financial institutions provide financing options that allow drivers to purchase and own the vehicles outright.