Transport minister Loke Siew Fook said both companies were found to have allowed their drivers to operate without an EVP, a key condition under their operating licence, Bernama reported.

Loke acknowledged that while the Land Public Transport Agency (Apad) had recommended revoking the companies’ licences in April for allowing their drivers to operate without EVPs, doing so could burden drivers and passengers who relied on the platforms.

Both operators had appealed and the ministry granted a three-month monitoring period starting July 24.

“We’ve outlined the steps they must take, and they’ve started making improvements,” Loke said after launching the Bas.My Kota Setar service in Alor Setar today.

“As this is their first offence, we are giving them the opportunity to rectify the issues.

“However, if they continue to violate (e-hailing) conditions, their licences may be suspended or cancelled.”

In September 2022, the road transport department had raided inDrive’s Malaysian office and discovered that the firm was operating with an expired licence.

In 2023, Maxim was also raided by Apad officers for allowing vehicles to operate without a valid permit.