The issuance of taxi permits to companies has been frozen from today for an indefinite period, Entrepreneur, Development and Co-operatives Minister Mohamed Khaled Nordin announced today.

Even pending applications will not be processed by the ministry, he told a press conference in Kuala Lumpur this afternoon.

However, the decision will not affect the issuance of permits to individuals based on the quota system.

Khaled said the decision will allow companies that already hold permits to enhance their quality of service, especially in view of the fact that the highest number of complaints have been against such holders.

"We also hope the change in policy will provide (individuals with) an opportunity to earn a living," he said.

The policy will remain in place until the ministry feels it is appropriate to reopen applications.

Allegation of graft

He dismissed suggestions that the change in policy was linked to Anti-Corruption Agency (ACA) investigations last December, where former Entrepreneur Development Minister Mohd Nazri Abdul Aziz was initially accused of issuing 6,000 taxi licences to an individual through 19 companies.

"This has nothing to do with the ACA investigations," Khaled said.

Mohd Nazri, who is now Minister in the Prime Minister's Department, has been cleared of any wrongdoing, but the ACA is said to be continuing its probe on related issues involving ministry officials.

Responding to this, Khaled said he was not aware if the investigations are still in progress, since he has only just been appointed to his post.

Currently, 19,204 taxi permits have been issued nationwide. These are held by 7,310 individuals and 824 taxi companies.

Khaled also said the ministry would continue to place priority on meeting the goals of the customer's charter implemented in January. This aims to reduce the time taken by the Commercial Vehicles Licensing Board to process applications.

Methods include cutting short the process of approving new applications from 90 to 30 days, and for renewal of permits from 60 to 15 days.

Also present at the press conference were Deputy Minister Khamsiyah Yeop and parliamentary secretary Samsu Baharun Abdul Rahman.