Malaysian taxis to pay $15 per Singapore trip from 2027

Malaysian taxis to pay per Singapore trip from 2027

SINGAPORE – From Jan 1, 2027, drivers of Malaysian-registered taxis entering Singapore have to pay $15 per trip, up from the current $2 per month.

Announcing the change on June 25, the Land Transport Authority (LTA) said that the adjustment to the Public Service Vehicle Permit fee aims to narrow the cost gap between Malaysian-registered taxis and Singapore-registered taxis operating in Singapore.

In response to queries from The Straits Times on how the permit fee hike could impact passenger fares, an LTA spokesperson said that the operators under the enhanced cross-border taxi scheme can decide whether to pass on the increase to commuters.

“LTA does not regulate fares but ensures fare transparency so that commuters can make informed choices,” the spokesperson added.

Elaborating on the change, the spokesperson said that the $2-per-month fee had not been changed since it was introduced over 30 years ago. This is while the operating cost gap between Singapore- and Malaysia-registered taxis has widened significantly, driven by factors like the certificate of entitlement, vehicle taxes, fuel costs and currency exchange rates.

LTA also said that switching to charge Malaysian-registered taxis on a per-trip basis was more reflective of actual usage.

The revision to the fee to enter Singapore follows an overhaul introduced on May 4 aimed at making cross-border taxi services between Singapore and Malaysia more flexible and attractive for commuters, discouraging them from turning to illegal operators.

Changes include a significant hike in fixed fares, additional designated pick-up points and allowing taxis to drop off passengers anywhere in Singapore and in Johor with a preset surcharge.

Under the revised fares, a four-seater taxi ride from Ban San Street Terminal in Bugis to Larkin Sentral Terminal in Johor Bahru, or up to 35km, will cost $80, up from $60, while a trip from Larkin to Ban San, or within 35km, will be priced at RM240 (S$75), up from RM120.

Each country’s quota for licensed taxis to provide cross-border services stands at 300 with the aim to increase it to 500.

Reacting to the upcoming permit fee hike, Mohd Suhaimi Saidi, chairman of the Johor Bahru-Singapore Cross-Border Taxi Association in Malaysia, told ST that while he had hoped the increase would be lower than $15, the fee is still bearable as drivers rarely make more than one trip a day to Singapore.

The current cost gap between Singapore and Malaysian cross-border taxis is huge.

Malaysian-registered taxis cost between RM30 and RM50 a day to rent, while Singapore drivers pay between $100 and $130, said Singapore cross-border taxi driver Haniff Mahbob, when asked about the difference in operating cost.

The 73-year-old said that as drivers on both sides earn the same regulated fare for cross-border trips, Malaysian drivers will likely still be better off than their Singapore counterparts after the higher permit fee takes effect.

However, he added that the bigger issue is the prevalence of illegal cross-border services, which hurts licensed drivers from both sides of the border.

LTA said it will continue to take enforcement action against illegal point-to-point transport services to safeguard the safety of commuters and the livelihoods of licensed drivers. Earlier in June, an enforcement blitz saw seven foreign drivers caught and their vehicles impounded for providing illegal point-to-point services in Singapore.

“Commuters are advised to use only licensed taxis for cross-border travel as only these have valid insurance coverage,” said LTA, adding that unlicensed vehicles are not appropriately insured and could leave passengers without recourse if they are involved in a traffic accident.

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