E-hailing companies in Malaysia are warning that new regulations will kick in on July 12th, and it will throw the industry into turmoil. Southeast Asia's biggest e-hailing company, Grab, which bought Uber's regional operations, was founded by Malaysians. And e-hailing services have become hugely popular there with pretty much everyone except taxi drivers. But as Rian Maelzer reports from Kuala Lumpur, it seems that a majority of ride hailing drivers will be forced off the streets Friday.

A group of people with disabilities receive mockups of their vocational driver's licenses from Malaysia's transport minister.

The licence will clear them to continue driving for e-hailing companies under the government's new regulations for the industry.

But e-hailing companies say that most drivers have not yet done what's required to stay on the road, which could cause a spike in waiting times and fares, with some dubbing it "Carmageddon".

ANDREW CHUA OPERATIONS HEAD, DACSEE E-HAILING "We will be facing a lot of issues, problems, issues of lack of drivers. I think we will foresee a drop of half of existing drivers we have now. I think all the operations will be chaos."

RIAN MAELZER KUALA LUMPUR "Under the new regulations, e-hailing drivers are required to study for and undergo a public service vehicle exam, undergo a medical and if their car is more than three years old, have it inspected."

They also have to take out additional insurance.

ANTHONY LOKE MALAYSIAN TRANSPORT MINISTER "We want to legalize it. That's why we regulate the industry and it's for safety reasons, it's for the safety of the drivers as well as for the safety of the passengers."

E-hailing drivers, especially part timers, have complained that the conditions are too much and too costly. The government announced the planned regulations a year ago after intense pressure from the taxi industry.

ANTHONY LOKE MALAYSIAN TRANSPORT MINISTER "In terms of regulations it's almost the same. We are leveling the playing field for the taxis but of course, the drivers have to accept the fact that they have to compete with e-hailing today. And it's a fair competition."

Drivers can get back on the road after the deadline if they meet the government's requirements.

These drivers with disabilities are a reminder that the e-hailing industry is more than a handy public service. It's a vital source of income to a diverse cross-section of Malaysians. Rian Maelzer, CGTN, Kuala Lumpur.