Malaysian Taxis Entering Singapore Must Install ERP 2.0, Tamper-Proof Plates

Malaysian taxis entering Singapore will soon have to meet stricter requirements, including installing Singapore’s new Electronic Road Pricing system. 

Singapore's Acting Transport Minister Jeffrey Siow said licensed cross-border taxis from Malaysia must be fitted with the ERP 2.0 on-board unit (OBU) before they’re allowed to operate in the country.

Siow was responding in writing to questions from Sembawang West MP Poh Li San, who raised concerns from local taxi and private-hire drivers about competition from Malaysian taxis under the cross-border scheme. 

To address these concerns, Siow said foreign taxis must also be clearly identifiable, with proper liveries, tamper-proof number plates with specific prefixes, and visible taxi toppers. However, he did not go into detail about when or how these new rules will be rolled out.

Singapore has been rolling out the ERP 2.0 system since late 2023 for locally licensed vehicles, with full completion expected by 2025. The new system replaces the older in-vehicle unit and relies on satellite technology to provide more accurate, real-time traffic data.

Siow added that the Land Transport Authority (LTA) will continue to clamp down on illegal point-to-point transport services. At the moment, foreign taxis are only allowed to pick up and drop off passengers at Ban San Street Terminal in Singapore and Larkin Sentral in Johor Bahru. 

That said, changes are coming. Licensed foreign taxis will soon be allowed to drop off passengers anywhere in both countries, though pick-ups will remain limited to designated locations.

These updates follow a joint announcement made in December by Siow and Malaysia’s Transport Minister Anthony Loke during the 12th Singapore-Malaysia Leaders’ Retreat. 

The two countries agreed to gradually raise the quota for licensed cross-border taxis from 200 to 500 per country as part of broader efforts to improve transport links between Singapore and Malaysia.

While drop-off points will be expanded, pick-up restrictions will stay in place to protect local drivers. 

Siow said this approach would help Singapore taxi drivers better meet demand for cross-border trips starting from Singapore, adding that more ride-hail pick-up points may be introduced over time at busy locations.

He also acknowledged that it’s not realistic to equalise operating costs between Singaporean and Malaysian taxis, but said the government is working on ways to make cross-border trips more viable for local drivers. 

As for fuel subsidies enjoyed by Malaysian taxis, Siow said that remains a decision for Malaysian authorities.

Source: TheBusinessTimes.