The Land Public Transport Commission (Spad) is reviewing taxi rates, in a bid to enhance the living standard of taxi drivers and improve the quality of taxi service, said Prime Minister Datuk Seri Najib Tun Razak.

He said the move was necessary, in view of the increase in operational costs, among others, that taxi drivers had to bear.

"I understand that Spad is currently reviewing the taxi fares, taking into account operational costs (of taxi drivers).

"My hope is that taxi drivers no longer have a lower standard of living but are able to have a better quality of life and also feel a higher sense of worth," he said at the Spad headquarters in KL Sentral where he presented 500 individual taxi licences to taxi drivers here Thursday.

At a press conference later, Spad chairman Tan Sri Syed Hamid Albar said the fare review was almost at its final stage and the agency hoped to present it to the government by year-end.

"We will also get public feedback on the fare review...We want to create a balance between paying for good service and the welfare of taxi drivers," he said, adding that the last review was made in 2009.

The current flag-off rate for Malaysian budget taxis is RM3, with RM0.10 charged at every subsequent 100 metres.