Singapore Keeps Cross-Border Ride-Hailing Restrictions as Taxi and Bus Changes Are Considered

Licensed taxis remain the focus of cross-border transport talks

Singapore has no plans to fully liberalise ride-hailing services across its border with Malaysia, even as both countries consider ways to make journeys between Singapore and Johor Bahru easier. The options under discussion include more boarding and alighting points for licensed cross-border taxis and allowing passengers to book those taxis through ride-hailing apps.

As of August 4, 2025, the Land Transport Authority (LTA) is maintaining the distinction between improving the existing taxi scheme and opening the border to unrestricted commercial journeys by private hire cars. Vehicles booked through services such as Grab or Gojek remain prohibited from providing cross-border point-to-point transport for payment.

The clarification followed a meeting between Singapore's Acting Transport Minister Jeffrey Siow and Johor Chief Minister Onn Hafiz Ghazi. They discussed cross-border transport, including the possibility of e-hailing services, but made no decisions. Any changes would require agreement between Singapore and Malaysia.

For passengers, the immediate position is unchanged: licensed cross-border taxis remain the authorised option for this type of paid car journey. Singapore is weighing commuter demand alongside passenger safety, insurance requirements and the livelihoods of drivers in both countries.

How the existing taxi scheme works

The reciprocal Cross Border Taxi Scheme (CBTS) permits up to 200 licensed taxis from Singapore and up to 200 from Malaysia to carry passengers across the border. Together, those limits provide for as many as 400 taxis, although the available slots are not fully used.

Each country's licensed cross-border taxis can pick up and drop off passengers anywhere within their home country. In the other country, they must use a single designated terminal. Singapore taxis use Larkin Sentral in Johor Bahru, while Malaysian taxis use Ban San Street Terminal in Singapore.

A Singapore taxi therefore has flexibility over the Singapore end of a journey, but its permitted stop in Johor Bahru is Larkin Sentral. A Malaysian taxi has the corresponding freedom within Malaysia, while its Singapore stop is Ban San Street Terminal. Passengers whose destinations are elsewhere may need another connection.

The scheme is intended to keep cross-border taxi operations orderly, safe and regulated. Participating taxis must meet requirements covering driver vocational licensing, vehicle inspections and insurance. Authorities in both countries have encouraged greater take-up of the existing quota to help meet demand for convenient travel.

What passengers pay and how they can book

The LTA lists fares from Ban San Street Terminal to Malaysia at S$60 per taxi or S$15 per person. Passengers seeking a pickup elsewhere in Singapore, or wishing to arrange a journey in advance, should check the arrangements and charges with the relevant licensed taxi operator.

Travellers can hire a licensed cross-border taxi at the designated terminal. Advance bookings are also available in some cases through licensed operators. The terminal fare and the advice to check other arrangements give passengers two practical starting points: where they intend to board and whether they need to reserve a vehicle.

Private hire cars remain outside this cross-border scheme. The restriction covers transport for hire and reward, meaning a driver carrying passengers in return for payment. Booking a car through a familiar ride-hailing app does not change the cross-border permission required for the vehicle and its driver.

App bookings are nevertheless part of the discussions about improving the service. The proposal being considered would let passengers use ride-hailing apps to arrange trips in licensed cross-border taxis, keeping the journey within the regulated taxi framework.

Why Singapore is keeping limits in place

Onn Hafiz has argued that opening cross-border e-hailing could give passengers more flexible transport on demand, reduce congestion at the Causeway and create additional income opportunities for Malaysian drivers. The proposal reflects demand for journeys that are easier to arrange and better matched to where people need to go.

Singapore's LTA is taking a more limited approach. Its stated priorities include convenient, safe and reliable travel; protection of the interests and livelihoods of Singapore's taxi and private hire drivers; compliance with regulation; proper passenger insurance; and orderly traffic backed by enforcement against illegal operators.

Opening the market more widely would affect drivers as well as passengers. Malaysian drivers could gain new earning opportunities, while Singapore drivers could face more competition. Singapore's position is that any adjustment must account for the interests of drivers on both sides alongside commuter needs.

The LTA has therefore ruled out full liberalisation for now and is concentrating on possible improvements within the CBTS. More places to board and leave licensed taxis, together with app bookings, would change how passengers access the service while retaining its licensing requirements.

Drivers call for a mutually beneficial arrangement

Johor state assemblyman Andrew Chen has called for a regulatory mechanism that would allow drivers from both Singapore and Malaysia to participate in cross-border ride-hailing. His proposal includes licensing, health and insurance requirements, with the aim of making the arrangement mutually beneficial.

Chen also highlighted the effect of Singapore's enforcement actions on drivers caught providing unauthorised cross-border transport, including vehicle impoundments and fines. He described cross-border mobility as central to the relationship between the two countries.

Cross-border mobility is the lifeblood of bilateral relations between Malaysia and Singapore economically, politically, and socially, and should not be treated as a zero-sum game.

His argument is that gains for one side need not come at the expense of the other. The challenge for the two governments is to agree on who may provide the service, what conditions those drivers must meet and how the rules will protect passengers and existing licensed operators.

The LTA has warned commuters against illegal ride-hailing services because of safety risks and the lack of proper insurance. Since 2022, more than 100 drivers have been caught providing illegal cross-border passenger transport using foreign-registered vehicles. Penalties include fines and vehicle forfeiture, meaning drivers can lose their vehicles.

More stops and app bookings are under consideration

Singapore and Malaysia are exploring an expansion of the boarding and alighting points available to licensed cross-border taxis. Moving beyond one designated terminal in each country could make journeys more direct and reduce the need for passengers to change vehicles before reaching their destinations.

For a traveller whose home, workplace or other destination is far from Larkin Sentral or Ban San Street Terminal, the location of an authorised stop can be as important as securing a taxi. More stops could reduce the extra travel required at either end of the border crossing.

Allowing ride-hailing apps to accept bookings for licensed cross-border taxis is the other main option. Passengers could arrange a journey through a digital platform they already use, while participating taxi drivers could reach a broader customer base.

The proposals remain subject to bilateral agreement. No implementation date was given, and the meeting between Siow and Onn Hafiz produced no decision on new services. Both governments would need to settle the arrangements with commuter demand, driver welfare and regulatory compliance in mind.

Earlier buses are also being reviewed

Cross-border buses are another focus of the discussions because thousands of people living in Johor Bahru depend on them to reach work or school in Singapore. The earliest public bus from Johor Bahru to Singapore currently starts at 5am on weekdays.

Malaysian authorities have asked for Singapore's cross-border buses to begin operating at 4am to ease early morning crowding at the checkpoints. The requested start would be one hour earlier than the current weekday service.

The LTA is reviewing the request with operators including SBS Transit and SMRT. One consideration is whether an earlier arrival in Singapore would connect with local buses and MRT trains. Passengers need a workable onward journey after crossing the border, as well as a bus to take them across it.

Commuter safety and the ability to sustain the service operationally are also part of the review. The LTA is considering whether private bus operators could provide earlier departures at higher fares.

An LTA spokesperson described the scope of that assessment:

We are assessing if bus operating times can be adjusted to address early morning bus crowding, including engaging private bus operators for earlier services at higher fares.

The bus review addresses a different part of the same daily journey. Taxi changes concern more flexible point-to-point travel, while earlier buses could provide another option for people trying to cross before the current public service begins.

The licensing rules behind the restrictions

Singapore's point-to-point transport framework regulates services that carry passengers between a chosen starting point and destination. The Point-to-Point Passenger Transport Industry Bill was passed in 2019, and the framework was implemented in 2020.

Its licensing structure separates taxi services that passengers can hail on the street from services booked through ride-hailing platforms. Drivers also need vocational licences, which involve training, health checks and compliance with safety standards.

• Street-Hail Service Operator Licences (SSOL) apply to taxi operators providing street-hail services.
• Ride-Hail Service Operator Licences (RSOL) apply to operators providing services booked through ride-hailing platforms.
• Vocational licences apply to taxi and private hire car drivers, with requirements covering training, health and safety.

Cross-border permission remains a separate requirement within this regulated setting. Private hire cars cannot provide paid cross-border point-to-point services, while taxis authorised under the CBTS must follow the scheme's rules on where they may pick up and drop off passengers.

The sequence leading to the current position includes the introduction of the domestic licensing framework, enforcement against unauthorised journeys and the latest transport discussions:

• 2019: Singapore passed the Point-to-Point Passenger Transport Industry Bill.
• 2020: The point-to-point regulatory framework was implemented.
• Since 2022: More than 100 drivers have been caught providing illegal cross-border passenger transport using foreign-registered vehicles.
• August 4, 2025: Singapore's stated position remains that full cross-border ride-hailing liberalisation is not planned, while changes to licensed taxis and bus services are being considered.

The terminal restrictions also support enforcement. Licensed taxis have defined places to operate in the other country, helping authorities prevent foreign taxis from seeking passengers outside the permitted arrangement.

What the choices mean for daily travel

The Causeway is one of the world's busiest land crossings. Hundreds of thousands of people move between Singapore and Johor Bahru each day for work, study and leisure, making transport arrangements part of everyday economic and social life on both sides.

Commuters stand to benefit from services that reduce transfers, make bookings easier or start earlier in the morning. More convenient transport could shorten journeys and improve daily life, particularly for people who cross frequently. The proposals address specific parts of that experience: reaching a taxi, arranging it in advance and finding a bus before 5am.

Drivers face a different set of practical concerns. Wider access to cross-border work could create income opportunities, but greater competition would affect existing taxi and private hire drivers. Licensing, health requirements, inspections and insurance are central to the discussion because they determine the conditions under which drivers compete and passengers travel.

Singapore and Malaysia must also manage the relationship between closer economic connections and their respective transport rules. Both governments recognise the need for better connectivity while protecting commuters and drivers. Negotiating changes together is necessary because a cross-border service operates within both countries.

The immediate focus is on improving the existing system. Unused taxi slots offer scope for more participation within the current quota, while additional stops and app bookings could make those licensed services easier to use. The bus review addresses early morning demand alongside the taxi discussions.

For passengers planning a journey now, the practical choices remain licensed cross-border taxis under the existing terminal rules and available bus services. The proposals point toward greater convenience within a regulated arrangement, with enforcement against unauthorised paid car journeys continuing.

Key Points

• As of August 4, 2025, Singapore has no plans to fully liberalise cross-border ride-hailing with Malaysia.
• The Cross Border Taxi Scheme permits up to 200 licensed taxis from each country, but the quota is not fully used.
• Singapore taxis must use Larkin Sentral in Johor Bahru, while Malaysian taxis must use Ban San Street Terminal in Singapore. Each can pick up and drop off passengers throughout its home country.
• The LTA lists fares from Ban San Street Terminal to Malaysia at S$60 per taxi or S$15 per person.
• More boarding and alighting points and app bookings for licensed cross-border taxis are under consideration.
• Private hire cars remain prohibited from providing paid cross-border point-to-point services.
• Malaysia has requested a 4am start for Singapore's cross-border buses, compared with the current earliest weekday public bus from Johor Bahru at 5am.
• More than 100 drivers have been caught providing illegal cross-border passenger transport using foreign-registered vehicles since 2022.
• Changes require agreement between both governments, and no implementation date has been given.