Minister in the Prime Minister's Department Nancy Shukri wants taxi operators to cooperate with the e-hailing service to further increase their income.
She said many taxi drivers complained that their income was affected by Uber and GrabCar services which utilised the e-hailing applications.
"We need to know that we are facing a new form of business and we don't want the taxi drivers to be left out.
"As such, the government wants taxi associations to cooperate with the e-hailing service," Nancy told reporters after she hosted a breaking of fast event in Kota Kinabalu tonight.
She said the Uber, GrabCar Regulatory Act would be tabled for the second reading in the Dewan Rakyat in July.
"Once the e-hailing regulations are approved, all e-hailing drivers will need to register with the Land Public Transport Commission (Spad).
"E-hailing drivers will also be subjected to stringent background checks in collaboration with other enforcement agencies, such as the police and Road Transport Department," Nancy added.