Quick summary: Singapore is significantly raising the entry fee for Malaysia-registered taxis to address long-standing operational cost disparities and protect the livelihoods of licensed cross-border drivers. The revised pricing structure transitions from a nominal monthly charge to a per-trip fee that reflects actual road usage while coinciding with an expanded vehicle quota designed to curb dangerous, uninsured illegal transport networks. For public policy and commuter safety, this regulatory overhaul ensures fair market competition and establishes a transparent framework towards safeguarding passengers against the physical and financial risks of unauthorised travel.
Singapore’s Land Transport Authority (LTA) has announced a significant increase in the fee for Malaysia-registered taxis entering the country, aiming to address long-standing cost disparities in cross-border operations.
From 1st January 2027, these taxis will pay S$15 per trip, up from the current S$2 a month. The adjustment to the ASEAN Public Service Vehicle Permit (PSVP) fee seeks to narrow the cost gap between Malaysia-registered taxis and Singapore-registered taxis operating in Singapore.
The LTA issues Public Service Vehicle Licences (PSVLs) and ASEAN PSVPs to Malaysia-registered taxis that provide cross-border taxi services between Singapore and Malaysia. Only those with a valid PSVL and PSVP are allowed to provide such services.
The LTA noted that the original fee had remained unchanged for more than 30 years.
“Since then, the operating cost gap between Singapore- and Malaysia-registered taxis has widened significantly,” the agency said, citing factors such as the Certificate of Entitlement (COE), Additional Registration Fee (ARF), fuel costs, and exchange-rate movements.
Asked why it had opted for a per-trip charge rather than increasing the monthly fee, LTA said the approach more accurately reflects actual usage, ensuring that fees paid by cross-border taxi operators are proportionate to the number of trips made.
“The per-trip charge would facilitate cost pass-through if needed,” the LTA said.
The LTA added that operators participating in the cross-border taxi scheme would decide whether to pass the PSVP fees on to commuters. The authority noted that while it does not regulate taxi fares, it requires operators to maintain fare transparency.
The fee revision follows a broader overhaul of the cross-border taxi scheme introduced on 4th May. The changes were designed to make licensed taxi services between Singapore and Malaysia more flexible and convenient for commuters, while discouraging the use of unlicensed operators.
Measures introduced under the overhaul included allowing passengers to be dropped off anywhere in Singapore and across Johor, expanding the number of designated pick-up points in both countries, and increasing fixed fares.
Under the revised fare structure, a 4-seater taxi journey from Ban San Street Terminal in Bugis to Larkin Sentral in Johor Bahru, or for trips of up to 35 km, costs S$80, up from S$60. The fare for journeys from Larkin Sentral to Ban San Street Terminal, or within the same 35-km limit, was raised to RM240 (about S$75) from RM120.
In addition, the quota for licensed taxis operating cross-border services is being progressively expanded, with each country increasing its allocation from 200 vehicles to 500.
“Commuters are advised to use only licensed taxis for cross-border travel, as these services carry valid insurance coverage,” the LTA said. The authority warned that unlicensed vehicles may not be adequately insured, potentially leaving passengers without recourse in the event of an accident.
“The LTA will continue to take enforcement action against illegal point-to-point transport services to safeguard commuter safety and protect the livelihoods of licensed drivers,” it added.
In May, 14 individuals were caught during LTA operations targeting unauthorised cross-border transport services. Earlier in June, a separate crackdown resulted in seven foreign drivers being caught providing illegal point-to-point services in Singapore, with their vehicles subsequently impounded.
Mohd Suhaimi Saidi, chairman of the Johor Bahru–Singapore Cross-Border Taxi Association, told The Straits Times that while he had hoped the increase would be lower than S$15, the revised fee remains manageable because most drivers make no more than one trip a day into Singapore.
The operating cost gap between Singapore- and Malaysia-registered cross-border taxis remains substantial. According to Singapore cross-border taxi driver Haniff Mahbob, Malaysian-registered taxis typically cost between RM30 and RM50 a day to rent, while Singapore drivers pay between S$100 and S$130.
Haniff, 73, said that because drivers on both sides of the border charge the same regulated fares for cross-border journeys, Malaysian drivers are likely to remain financially better off than their Singapore counterparts even after the higher permit fee takes effect.
However, he said the larger concern is the continued presence of illegal cross-border transport services, which undermine the livelihoods of licensed drivers in both countries.
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