Singapore authorities in discussions about app-based bookings for cross-border taxi services

SINGAPORE: Singapore authorities recently discussed partnering with platform companies to allow app-based bookings for cross-border taxi services, the Land Transport Authority (LTA) said on Tuesday (Sep 2).

They also discussed allowing higher quotas and larger capacity vehicles as part of potential expansions to the current cross-border taxi schemes. 

Acting Transport Minister Jeffrey Siow, Senior Minister of State Sun Xueling, the Ministry of Transport and LTA met representatives from the National Taxi Association (NTA), the National Private Hire Vehicles Association (NPHVA) and the Singapore-JB Taxi Association to discuss cross-border point-to-point transport last week.

The authorities recognised that the current cross-border scheme can be improved, such as by designating more pick-up and drop-off points and facilitating expedited clearance, LTA said in a Facebook post.

Cross-border taxis are currently only allowed to pick up and drop off passengers at a designated point in the other’s country - Larkin Sentral in Johor Bahru for Singapore taxis and Ban San Street Terminal in Singapore for Malaysian taxis. 

In the meeting, the regularisation of cross-border point-to-point services to meet the needs of Singaporean commuters, provide opportunities for local drivers and keep out illegal vehicles was also discussed, said LTA.

"The participants recognised that there is demand from Singaporeans travelling to Malaysia which the current cross-border taxi service is unable to meet," LTA added.

This includes large families with young children, elderly Singaporeans visiting relatives in Malaysia and businessmen travelling across the border for meetings.

"There are Singaporeans willing to pay for these services, and Singaporean drivers who are keen and able to serve this demand."

The NTA and NPHVA on Tuesday noted in Facebook posts that the current challenges faced by cross-border transport services require solutions that address the different requirements by both countries.

This includes the "uneven operating environment due to different car prices, business costs, exchange rates, and cost of living".

Illegal point-to-point cross-border services create unfair competition and safety risks, they said. 

"The existing framework has limitations in passenger matching, drop-off and pick-up points, and clearance efficiency."

Besides the inclusion of ride-hailing apps and more drop-off and pick-up points, the associations said they have also proposed public transport lanes for faster taxi clearance.

"We are pleased that MOT has agreed to review the cross border taxi service with the Malaysian government," the associations said.

They also proposed that taxis be allowed to drop off passengers at any location but only pick up customers from designated points to "maintain regulatory oversight" while catering to passenger convenience.

Any new framework must not make illegal operations easier or detection harder, the associations noted.

The NTA and NPHVA also proposed that cross-border vehicles must meet the same standards, including vehicle age, window tints, modifications and outstanding fine status, regardless of registration country.

All vehicles must also display active fare meters and provide receipts for fair pricing and transparency, they added.

"We hope this revamp will encourage more local taxis, including larger capacity vehicles, to join the cross border taxi service, creating a sustainable model that benefits passengers, our workers, and Singapore's economy," the associations said.

In the meeting last week, the authorities also discussed the importance of enforcement, including the use of location tracking to prevent illegal trips by cross-border taxis within Singapore, such as via ERP 2.0.

Enforcement efforts against foreign vehicles that flout Singapore laws will continue, said LTA.

“As we advance discussions with our Malaysian counterparts to find better ways of serving commuters, the support of NTA and NPHVA will help us to also protect the livelihoods of our local taxi and private hire car drivers,” LTA added.

The discussion follows comments by LTA on Aug 3 that there were no plans to fully liberalise cross-border point-to-point transport via ride-hail services.

LTA also said at the time that it was considering the use of ride-hailing apps to book cross-border trips on licensed taxis and increasing the number of boarding and alighting points in Singapore and Malaysia. 

Singapore and Malaysian officials had met on Aug 1 to discuss cross-border service arrangements, with the issue of allowing cross-border e-hailing to ferry passengers raised during discussions.

LTA said then that no decision had been made on the issue.