PUTRAJAYA: Cabinet has agreed to allow unlicensed e-hailing drivers to operate for another three months from Friday (July 12).

This would allow more time for drivers to apply for passenger service vehicle (PSV) licences.

The deadline was supposed to be today (July 12).

The decision was made in Friday's weekly Cabinet meeting.

The Transport Ministry said this decision was a "soft landing" approach towards regulating the e-hailing industry.

Enforcement will still be ongoing in the three months, but unlicensed e-hailing drivers would be let off with a warnings and final reminder.

Effective July 12 last year, the Transport Ministry began regulating e-hailing services in the country.

E-hailing drivers were given a year's grace period to apply for a PSV licence, which is also a requirement for taxi drivers.