Malaysia-registered taxis entering Singapore to pay S$15 per trip from 2027, up from S$2 a month
The adjustment aims to narrow the cost gap between Malaysia-registered taxis and Singapore-registered taxis operating in Singapore, says the Land Transport Authority.
Passengers boarding a cross-border taxi at Ban San Street Terminal on May 4, 2026. (File photo: CNA/Mak Jia Kee)
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SINGAPORE: Malaysia-registered taxis entering Singapore will have to pay S$15 (US$11) per trip from Jan 1, 2027, up from the current S$2 a month, the Land Transport Authority (LTA) said on Thursday (Jun 25).
The adjustment to the ASEAN Public Service Vehicle Permit (PSVP) fee aims to narrow the cost gap between Malaysia-registered taxis and Singapore-registered taxis operating in Singapore, the authority said.
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 Malaysia-registered taxis with a valid PSVL and PSVP are allowed to provide such services.
The revised fee comes after changes to cross-border taxi services between Singapore and Malaysia took effect on May 4, allowing passengers to be dropped off anywhere in Singapore and across Johor.
The updated scheme also introduced additional designated pick-up points in both countries.
FEE UNCHANGED FOR 30 YEARS
In response to CNA's queries, LTA said the original fee had not been changed since it was first introduced more than 30 years ago.
"Since then, the operating cost gap between Singapore and Malaysia-registered taxis has widened significantly," it said.
The Certificate of Entitlement, Additional Registration Fee, fuel costs and the exchange rate are key drivers of this difference, said the transport authority.
"The PSVP fee for taxis has to be raised to narrow the cost gap between Malaysia-registered taxis and Singapore-registered taxis operating in Singapore," it added.
Asked why a per-trip fee was chosen instead of increasing the monthly one, LTA said the former reflects actual usage more accurately, ensuring fees paid are commensurate with the number of trips made by cross-border taxis.
"The per-trip charge would facilitate cost pass-through if needed," it said.
LTA added that it was up to operators under the cross-border taxi scheme whether to pass the PSVP fees to commuters, stating that it does not regulate fares but ensures fare transparency.
"Commuters are advised to use only licensed taxis for cross-border travel as only these have valid insurance coverage," it said, adding that unlicensed vehicles are not appropriately insured and could leave passengers without recourse if they are involved in an accident.
"LTA will continue to take enforcement action against illegal point-to-point transport services to safeguard the safety of commuters and livelihoods of licensed drivers," it added. In May, 14 people were caught in LTA enforcement operations against illegal cross-border transport services.
Suhaimi Saidi, president of the Johor-Singapore Taxi Association, which manages Malaysia-registered taxis at Larkin Sentral, told CNA on Friday that the impact of the fee hike is currently “not very noticeable”.
“The only shortfall is the revenue, the S$80 has been reduced,” he said, referring to the typical cross-border taxi fare.
“There wasn’t much we can do.”
