Malaysia gives $245 one-off payment to taxi, rental car, school bus drivers
Malaysia is distributing one-off financial aid of RM1,000 (US$245) to 38,000 taxi and rental car drivers and 15,000 school bus drivers, with payments being rolled out in stages starting this week.
The first group of recipients was invited to collect their vouchers at the Transport Ministry on Wednesday, Transport Minister Anthony Loke announced at a press conference on Monday.
"We are committed to distributing the payments as soon as possible so that Indian drivers can receive the aid before Deepavali," Loke said. The Hindu festival of lights falls on November 8 this year, less than a month away.
The financial assistance is among the support measures outlined in Budget 2027, which Prime Minister Anwar Ibrahim tabled in Parliament on October 9. While the budget has yet to be passed, Loke said the payments can be distributed immediately because they will be financed by RM91.2 million already collected this year from the sale of special "H" vehicle registration numbers.
Funding from special registration plates
The Road Transport Department launched the 'H' registration number series in September 2026 to commemorate Malaysia Day. The letter 'H' stands for 'Harmony' and represents the final single-letter series to be issued by the department. Bidding ran from September 16-20 through the JPJeBid online system, attracting 34,664 participants who bid on 8,223 registration numbers. The most expensive plate, 'H 1', sold for RM10,777,777.
By using pre-collected revenue rather than new budget allocations, the government can expedite assistance to drivers while managing fiscal constraints. Malaysia's fiscal deficit is projected to narrow from 3.6% of GDP in 2026 to 3.3% of GDP in 2027, with a target of reaching 3% by 2028 under the Public Finance and Fiscal Responsibility Act 2023.
Broader budget support measures
The driver payments are part of a comprehensive package of worker support initiatives in Budget 2027, which totals RM459.8 billion in federal expenditure. Overall spending and investments are projected at RM510 billion when including contributions from government-linked investment companies and other sources.
Key measures include raising the minimum monthly wage from RM1,700 to RM2,000 effective June 2027, representing a 17.6% increase that will benefit more than four million workers nationwide. A new RM2,500 monthly wage floor for semi-skilled workers and graduates was also announced.
Government employees will receive special payments, with 1.3 million civil servants including contract staff due to receive RM1,500 in two instalments ahead of Eid al-Fitr and Malaysia's 70th Independence Day celebrations in August 2027. More than one million government retirees and military veterans will receive RM750.
Budget 2027 also allocates RM16 billion for cash assistance programmes Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA), expected to benefit up to 13 million Malaysians as part of measures to ease cost-of-living pressures.
Additional budget provisions include expanded personal tax relief, stamp duty exemption for first-time homebuyers, and a package to improve gig workers' income and welfare.
