Malaysiaās transport regulator has warned e-hailing companies against discriminatory practices after Grab, the countryās largest ride-hailing service, started charging a premium on customers requesting Mandarin-speaking drivers.
The controversy erupted earlier this week when a screenshot went viral on social media, showing that the cost to book a ride with a Mandarin-speaking driver was up to 50 per cent higher than for similar rides without the language requirement.
It provoked outrage in Malaysia, where identity politics and rising ethno-nationalism have deepened mistrust between the Malay majority and the countryās ethnic Chinese and Indian minorities.
In response, the Land Public Transport Agency (Apad) issued a reminder to e-hailing providers that their licensing conditions require booking systems to be āfair and equitable to all driversā. The agency warned that discrimination against e-hailing drivers was a criminal offence, carrying penalties of up to 200,000 ringgit (US$47,200) in fines and two yearsā imprisonment.
Apad, in a statement on Thursday, said it was ācommitted to ensuring the sustainability of e-hailing services as a fair and inclusive public transportation service that is free from any form of discrimination towards all stakeholdersā.
Grab had earlier defended the Mandarin driver option as a pilot project, launched in response to a surge in tourist arrivals from China. The number of Chinese visitors reached 1.4 million in the first four months of 2025, according to Tourism Malaysia, a 38 per cent year-on-year increase.
āThis experiment was crucial in testing the sustainability and demand among tourists, as we work towards introducing support for additional languages,ā Grab said in a statement on Thursday.
The company, which is based in Singapore, added that the pilot had now been paused for review and that it would reconsider its approach before any āfuture roll-outs of other language-ride offeringsā.
What about tourists from Indonesia, India, Thailand, Arabs?
A social media user criticises the Grab pilot
But critics contended that the language option itself was not the main issue; rather, it was the substantial surcharge and the risk of enabling customers to select drivers based on ethnic background.
āIf you start to look for Chinese [language proficiency], it is really limiting the jobs for everyone else,ā wrote social media user Nur Hafidz. āChinese locals also can request a Chinese-only Grab driver.ā
Others raised concerns about double standards, questioning why similar options were not extended to tourists from elsewhere.
āDoes it mean we only have tourists from China? What about tourists from Indonesia, India, Thailand, Arabs?ā read another complaint.
Malaysia welcomed 13.4 million tourists in the first four months of this year. China was the third-largest source of visitors, after Singapore and Indonesia, with Thailand and India also making large contributions to the countryās tourism numbers.