E-hailing, p-hailing workers welcome insurance cost relief

KUALA LUMPUR: The RM160 million support package for e-hailing and p-hailing workers announced under the 2027 Budget, particularly vehicle insurance assistance, can ease operating costs and boost net income for drivers and riders facing rising premium rates.

Persatuan Rakan Grab Malaysia (PRGM), representing over 20,000 members nationwide, said in a statement that rising insurance premiums were among the earliest issues raised during engagement sessions with Grab Malaysia since its establishment last month.

"Insurance cost assistance under the 2027 Budget is a most welcome development and has the potential to offer meaningful relief to thousands of e-hailing driver partners nationwide," the statement said.

PRGM acknowledged Grab Malaysia's initiative to offer daily insurance payment options to ease drivers' financial pressure, but noted that this focused primarily on payment flexibility and did not fully address overall premium hikes.

The association also welcomed other components in the package, including increased minimum earnings rates, vehicle maintenance assistance, Social Security Organisation contributions, and initiatives to boost demand for e-hailing services.

However, PRGM urged that the implementation mechanism account for operating cost variations by location, service type, and driver needs to ensure benefits are distributed fairly.

The statement added that cooperation between the government and Grab Malaysia is essential to reducing operational costs and improving net income for drivers and riders.

PRGM said it will continue to bridge Grab partners, Grab Malaysia, and the government to ensure ground-level feedback and challenges faced by gig workers are addressed through constructive engagement.

The association expressed hope for stronger collaboration with Grab Malaysia, particularly on issues directly impacting earnings, operating costs, and the welfare of drivers and riders.

"For PRGM, the success of any policy lies not just in the allocated sum announced, but in how meaningfully the benefits are felt by drivers and delivery partners working daily to support their families," it said.