Road Traffic Act · 2026 Revised Edition · Part · Public Service Vehicles and Franchises
64. Grant of franchise
Official textFrom Attorney General's Chambers, unchanged
The Licensing Authority, subject to the provisions of this section and section 67, upon application under section 63, may grant or refuse any franchise:
Licensing Authority
“Licensing Authority” means the Motor Transport Licensing Authority established under section 49;
Provided that —
no franchise shall be granted for a period exceeding 7 years, and shall in any case not exceed such period, if any, as may be prescribed for a franchise of a particular class or description;
the Licensing Authority shall not without the consent of
His Majesty the Sultan and Yang Di-Pertuan grant any franchise inconsistent with the tenor of the declaration in respect thereof made under section 63;
if it proposes to grant a franchise, the Licensing Authority shall first announce by notice published in the Gazette that the grant
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of a franchise to a particular person is proposed, together with such details of the terms thereof as shall in the opinion of the chairman suffice to enable objections to be made thereto and shall provide by such notice for the time within which and the manner in which objections shall be made to the grant of the proposed franchise;
if any objection is made within due time, being an objection which the Licensing Authority is bound to take into consideration under subsection (2), the Licensing Authority shall hold a public inquiry consistent with the rules of natural justice or, if a specific procedure is prescribed, then in accordance therewith;
if the Licensing Authority refuses any application for a franchise, it shall inform the applicant accordingly and also of his right of appeal under section 70.
It shall be the duty of the Licensing Authority on any application to which subsection (1) applies to take into consideration any objection to the application which may be made —
by any local authority having jurisdiction in and by any person resident in the regulated area; or
by persons who are already providing facilities (whether by means of road transport or any other kind of transport) for the carriage of passengers for hire or reward in such regulated area, on the ground that —
suitable transport facilities exist for the route in respect of which it is proposed to grant the franchise;
if the franchise were granted, transport facilities for such route would be in excess of requirements;
the applicant has failed to comply with the terms of a franchise held by him;
the Licensing Authority has not exercised its discretion in accordance with the provisions of section 67; or
it is not necessary or desirable in the public interest —
to grant the franchise; or
Road Traffic
if the franchise is to be granted to grant such franchise to the applicant.
This section applies to every application for a short term franchise as provided by section 60(2), unless the Licensing Authority is of the opinion either —
franchise
“franchise” includes — (a) the grant either of an exclusive right to maintain a public service of road transport within a regulated area or part thereof, or the right to operate, within a regulated area or part thereof, a public service of road transport by a vehicle or vehicles for which a public service vehicle licence is required which is not available to all persons holding licences of the same class: Provided that a right granted is deemed to be a franchise for the purpose of this part of this definition notwithstanding that it does not exclude the Government or persons to whom an exemption has been granted and notwithstanding that it may cease to be exclusive by virtue of the exercise by the Licensing Authority of the powers conferred by this Act or by any franchise issued hereunder; and (b) whether or not paragraph (a) applies, the grant of the right under section 64 to operate within a regulated area or part thereof a stage carriage of any class or description of public service vehicle to which section 64 from time to time applies;
that, having regard to the trivial nature of the application, it is not necessary that any opportunity should be given for objecting;
or
that the application has been made with reasonable expedition and that the demand for the use of the vehicle to be authorised under the franchise is so urgent as to render compliance with the requirements of this section impracticable or inexpedient.
Where, as provided for in this section, any person objects to the grant of a franchise, the burden of satisfying the Licensing Authority that such objection is well founded shall lie upon such person.
person
“person” shall have the meaning assigned to it by the Interpretation and General Clauses Act;
The Minister may, with the approval of His Majesty the Sultan and Yang Di-Pertuan, by regulations apply the provisions of this section to any class or description of public service vehicle in addition to a stage carriage.
public service vehicle
“public service vehicle” means a motor vehicle ordinarily used, whether in part or in whole, for the purpose of conveying passengers or goods or both, for hire or reward, whether under contract to a person plying for hire or generally, and, in the case of a tractor, includes any trailer attached to it;
Terms defined in s 2
franchise
Defined · s 2“franchise” includes — (a) the grant either of an exclusive right to maintain a public service of road transport within a regulated area or part thereof, or the right to operate, within a regulated area or part thereof, a public service of road transport by a vehicle or vehicles for which a public service vehicle licence is required which is not available to all persons holding licences of the same class: Provided that a right granted is deemed to be a franchise for the purpose of this part of this definition notwithstanding that it does not exclude the Government or persons to whom an exemption has been granted and notwithstanding that it may cease to be exclusive by virtue of the exercise by the Licensing Authority of the powers conferred by this Act or by any franchise issued hereunder; and (b) whether or not paragraph (a) applies, the grant of the right under section 64 to operate within a regulated area or part thereof a stage carriage of any class or description of public service vehicle to which section 64 from time to time applies;
Licensing Authority
Defined · s 2“Licensing Authority” means the Motor Transport Licensing Authority established under section 49;
local authority
Defined · s 2“local authority” includes any Municipal Board set up under section 3 of the Municipal Boards Act;
person
Defined · s 2“person” shall have the meaning assigned to it by the Interpretation and General Clauses Act;
public service vehicle
Defined · s 2“public service vehicle” means a motor vehicle ordinarily used, whether in part or in whole, for the purpose of conveying passengers or goods or both, for hire or reward, whether under contract to a person plying for hire or generally, and, in the case of a tractor, includes any trailer attached to it;
regulated area
Defined · s 2“regulated area” means any area declared to be a regulated area under section 48;
road
Defined · s 2“road” means any highway and any other road to which the public has access, and includes bridges over which a road passes;
stage carriage
Defined · s 2“stage carriage” means a motor vehicle that carries passengers for hire or reward at separate fares on a previously determined route;
traffic
Defined · s 2“traffic” includes vehicles of every description, pedestrians, processions, and bodies of troops and all animals being ridden, driven or led;
vehicle
Defined · s 2“vehicle” means any vehicle, including a trailer, constructed, adapted or capable of being used on roads, whether mechanically propelled or not.
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