The Land Public Transport Commission (Spad) must regulate the e-hailing taxi concept by year-end, paving the way for Uber and Grab car services to be legalised, the cabinet has decided.

According to TheSun Daily, the cabinet believed the move was essential for the benefit of Malaysians.

Amendments to the laws to allow ride-sharing is expected to be tabled during the Parliament sitting in November.

The cabinet made the decision after Spad chief executive officer Mohd Azharuddin Mat Sah reportedly presented 11 initiatives on taxi and ride-sharing service.

These initiatives included revamping the conventional taxi industry and expanding transport services by legalising Uber and Grab services, according to the daily.

The cabinet was reportedly pleased with the move to provide individual taxi permits to conventional taxis with good and clean track records.

"It is apparent that the people want taxi services improved," a high-level official from the Prime Minister's Department was quoted as saying.

There are currently 77,000 registered taxi drivers nationwide.

It is expected that 150,000 new individual permits holders - Uber, Grab and taxi drivers - will co-exist nationwide in the next three years.