Transport Minister Anthony Loke announced a nationwide RM1,000 cash assistance rollout for taxi, hire-car, and school bus drivers, sparking immediate political friction as critics called for electoral investigations into the timing of the payout ahead of the Melaka state election.
The financial aid package, funded through proceeds from special vehicle registration numbers, quickly drew scrutiny from political opponents who questioned the distribution schedule. Free Malaysia Today reported that local figures urged both the Election Commission and the Malaysian Anti-Corruption Commission to probe the disbursement, framing the timing as a potential poll sweetener.
Defending the Rollout Against Electoral Scrutiny
Addressing reporters after officiating a presentation ceremony at the CMI Complex Auditorium in Ayer Keroh, Transport Minister Loke Siew Fook forcefully denied that the funds were tied to the upcoming state vote. The minister clarified the incentive forms part of a broader nationwide implementation plan following Prime Minister Datuk Seri Anwar Ibrahim’s tabling of Budget 2027.
The distribution schedule spans multiple states. Loke pointed out that he visited Negeri Sembilan the previous week to distribute similar funds and has scheduled subsequent stops in Kedah, emphasizing that transport workers across every state will receive the assistance.
“I want to clarify some remarks made by people outside who have asked why the assistance is being given only in Melaka. The fact is that this special financial assistance is for all taxi drivers nationwide, not just those in Melaka,” Loke stated.
Funding Sources and Direct Disbursement Channels
The financial backing for the initiative originates from government revenue. The RM1,000 payouts are financed through proceeds generated by the sale of special “H” vehicle registration numbers, which accumulated RM91 million.
Administrative logistics for the rollout rely on direct verification through the Land Public Transport Agency. Approximately 12,000 drivers out of a total pool of roughly 38,000 taxi and hire-car drivers and 15,000 school bus drivers nationwide are slated to receive their funds via electronic fund transfers or direct bank deposits.
| Recipient Category | Target Beneficiaries | Aid Amount | Disbursement Method |
|---|---|---|---|
| Taxi & Hire-Car Drivers | ~38,000 nationwide | RM1,000 | Direct EFT / Vouchers |
| School Bus Drivers | ~15,000 nationwide | RM1,000 | Direct EFT / Vouchers |
| Immediate Weekly Batch | ~12,000 recipients | RM1,000 | Bank Transfer / Events |
Recipients at distribution events expressed immediate relief as festive seasons approach. The Star documented accounts from veteran drivers in Penang, where individuals like 61-year-old S. Gunasundari noted the funds would directly support Deepavali preparations and household budgeting. Similar events in Negeri Sembilan provided immediate cash relief to over 400 local drivers facing rising vehicle maintenance and fuel expenses.

Ministry of Transport Pursues Structural Reforms for Taxi Operators
Beyond the one-off cash injection, the Ministry of Transport continues to pursue long-term structural reforms for traditional transport operators. The government is partnering with Proton to lower vehicle purchase costs, alongside offering financing facilities and rebates to help drivers stay competitive against e-hailing alternatives.
More than 100 vehicles have already been ordered through this taxi transformation programme. These modernised units incorporate in-car advertising and digital applications designed to secure steady passenger streams, ensuring that short-term financial aid is complemented by sustainable industry modernization.