Singapore weighs ERP 2.0 tracking and app bookings to tackle illegal cross border taxi trips

Location tracking enters talks on Singapore and Johor taxi services

Singapore is considering whether ERP 2.0, the next phase of its Electronic Road Pricing system, could help tackle illegal cross border taxi services as officials discuss changes to the regulated route between Singapore and Johor Bahru. Between 2022 and July 2025, 136 drivers were caught providing illegal cross border services, with foreign registered vehicles impounded in some cases.

As of September 2, 2025, the discussions bring together two aims: making licensed services more useful to passengers and protecting local drivers from unfair competition. Proposals include bookings through apps, more boarding and arrival points, larger vehicles, higher taxi quotas and faster passage through checkpoints. Singapore has no plans to fully liberalise cross border ride hailing.

The technology question centres on on board units, known as OBUs. Singapore registered cars and taxis have been fitted with these units since 2023. They record where and when vehicles travel. Malaysian vehicles entering Singapore are not currently required to carry one, leaving a gap in any proposal to use the system to monitor foreign vehicles.

The Land Transport Authority, or LTA, has acknowledged that Singaporeans are willing to pay for cross border trips and that drivers are ready to provide them if the rules are updated. Driver associations say large families, seniors needing assistance from door to door and business travellers often find the existing taxi scheme too restrictive.

Transport officials and industry groups agree that the current arrangements leave room for illegal services, especially when demand peaks. Their discussions concern how to meet that demand through licensed taxis while maintaining defined operating rules and continued enforcement.

What ERP 2.0 could contribute to enforcement

ERP 2.0 upgrades Singapore's road pricing system through satellite positioning and secure communications. Its OBUs identify a vehicle's location so that rules for road charges and traffic management can be applied. Over time, the system is expected to support charging based on distance travelled and more flexible traffic controls.

Location information could also help authorities examine whether a vehicle is making pickups or drop offs prohibited by transport laws. A foreign registered vehicle providing point to point trips within Singapore without a taxi licence is breaking the law. For cases involving Singapore vehicles, ERP 2.0 could supply data that supports other enforcement evidence.

Foreign vehicles present a practical difficulty. Without an OBU, the system has no persistent location trail for them. Authorities continue to rely on spot checks and enforcement on the ground, but those methods leave gaps.

Officials and driver representatives have discussed how tracking might be used without placing new burdens on legitimate drivers. Participants and members of the public have also suggested geofencing sensitive areas or requiring visiting vehicles involved in commercial passenger transport to carry compatible OBUs. Geofencing means setting a digital boundary around an area so that a system can identify when a tracked vehicle enters or leaves it.

Changes affecting vehicles and drivers moving between the two countries would need agreement with Malaysia. Rules for handling data would also be central: what information is collected, how long it is retained and who may access it for enforcement. No decision or implementation date has been given for using ERP 2.0 in this way or requiring foreign vehicles to install compatible units.

Where licensed taxis can operate today

The reciprocal cross border taxi scheme allows up to 200 licensed taxis from Singapore and up to 200 from Malaysia to carry passengers between Singapore and Johor Bahru. Together, those limits provide for up to 400 taxis, divided equally between the two sides.

Each country's taxis can pick up passengers only at designated points in the other country. Singapore taxis currently pick up and drop off passengers at Larkin Sentral in Johor Bahru. Malaysian taxis do so at Ban San Street Terminal in Singapore.

The framework provides control and predictability, but it can create extra transfers for passengers. A family travelling from an HDB estate to a holiday rental in Johor may need additional transport to complete the journey. Seniors with mobility difficulties face a greater challenge when they must change vehicles or carry bags through a crowded terminal.

Driver associations want more pickup and drop off points, a higher quota on each side and vehicles with more seats for families and groups. They also seek priority lanes at checkpoints so taxis can clear more quickly during busy periods.

One proposal would let taxis drop passengers anywhere in the receiving country while keeping pickups restricted to designated locations. Supporters say that would make destinations more practical for travellers while preserving oversight at the start of each trip. Regulators are studying whether that arrangement can operate safely and fairly.

Bookings through apps could connect demand with licensed taxis

Authorities are considering partnerships with platforms so passengers can book licensed cross border taxis through apps. Familiar booking tools could make it easier to reserve a legitimate vehicle and match riders with available drivers, reducing the incentive to arrange unlicensed journeys through informal channels.

Bookings could record fares and routes, linking a trip to a licensed fleet. That record would support accountability and offer an alternative to messaging groups and informal brokers that connect passengers with unlicensed drivers.

The discussions also cover how booking systems might work alongside mandatory receipts, clear cancellation rules and active fare meters visible to passengers. Receipts, whether printed or digital, would let travellers check charges and retain a record of their journey.

Such tools are already common in domestic ride hailing and could be adapted to cross border taxis. Authorities want any new booking arrangements to strengthen compliance and consumer protection while keeping illegal operations from becoming easier.

Driver groups say a clearer system combining apps and common standards would encourage more Singapore taxis to join the cross border service, including vehicles with greater passenger capacity. A larger licensed pool could meet more demand during busy periods and leave less business for illegal operators.

Why licensed drivers want a fairer market

Taxi associations on both sides of the Causeway say illegal point to point operators undercut licensed drivers. Singapore drivers face higher vehicle and compliance costs, including licences, inspections and insurance designed for carrying paying passengers.

Malaysian drivers operate with a different cost structure, including lower car prices and running costs. A weaker ringgit also reduces their effective costs when fares are paid in Singapore dollars. Illegal operators can use those differences to offer cheaper trips, drawing customers away from licensed taxis and putting pressure on local drivers' livelihoods.

Singapore's taxi ridership has yet to recover to earlier peaks. Opening cross border work to private hire fleets could further reduce the passengers available to licensed taxis. Local taxi firms also face competition from larger regional platforms able to mobilise more drivers and capital.

LTA has said enforcement will remain a priority. In a public statement about foreign vehicles operating unlawfully in Singapore, the agency said:

Enforcement against foreign vehicles that break Singapore laws will continue.

LTA has also stressed the role of the National Taxi Association, or NTA, and the National Private Hire Vehicles Association, or NPHVA, as talks with Malaysia proceed. Its position links industry support with protection for local taxi and private hire drivers as the framework changes.

Vehicle standards and passenger protection are part of the talks

Licensed taxis must meet requirements covering vehicle age, inspection schedules and modifications, including window tinting. Passengers also have avenues for dealing with disputes or accidents. Associations want vehicles carrying paying passengers across the border to meet a shared baseline, whichever country they are registered in.

The suggested requirements include vehicle age ceilings, limits on tint and modifications, and proof that a vehicle has no outstanding traffic fines. Associations also want driver vetting and complaint handling to be aligned, giving passengers a more consistent experience and making enforcement practical for both regulators.

Active meters and printed or digital receipts are another part of that proposed baseline. A visible meter allows a rider to follow the charge during a journey, while a receipt provides a record for checking the fare or raising a complaint.

LTA's statement on discussions with its Malaysian counterparts also addressed the support of the two driver associations:

LTA said that as discussions with Malaysian counterparts advance, support from NTA and NPHVA will help protect the livelihoods of local taxi and private hire drivers.

For associations, booking technology and vehicle standards belong in the same discussion. Apps could help passengers find licensed taxis, while common requirements would give those taxis a clearer basis for competing with each other and serving travellers safely.

What passengers could gain from less rigid rules

Large families want vehicles that can take children and luggage together. Seniors visiting relatives may need transport that stops close to a lift lobby or clinic rather than at a terminal. Business travellers crossing for meetings value reliable journeys and time saved by travelling directly between their starting point and destination.

More designated pickup and drop off locations could reduce detours and waiting, particularly in places with strong travel demand such as Iskandar Puteri and industrial estates in western Singapore. Allowing wider drop offs while keeping pickups controlled would address part of that need without removing the designated boarding system.

Driver groups also see checkpoint arrangements as important to journey reliability. Allowing taxis to use public transport lanes near checkpoints during peak hours has been proposed as a way to shorten queues without displacing buses.

These changes would affect different parts of the same journey. A larger vehicle could keep a family together, a closer drop off could spare a senior an extra transfer, and quicker checkpoint clearance could make an arrival time more predictable. Booking through an app could help secure the licensed taxi in the first place.

Why unrestricted cross border ride hailing is outside the plan

Singapore's discussions focus on upgrading the licensed taxi scheme rather than allowing private hire cars to operate freely across the border. Transport planners have raised concerns about monitoring large numbers of small operators working across two legal systems with different licensing, insurance and safety requirements.

Drivers who spend only short periods on Singapore's streets can be difficult to inspect and audit. Complaints and accidents also become more complicated to handle transparently when the people involved are in different jurisdictions.

Market balance is another concern. Malaysian cars may offer lower fares because of cost differences across the border, drawing trips away from Singapore drivers. Local firms with higher compliance costs could be disadvantaged, while regional platforms have the resources to bring more drivers into the market.

Passengers have other transport choices, including public buses connecting key destinations. The Johor Bahru Singapore Rapid Transit System is targeted to begin service by late 2026. The rail link is designed to carry large numbers of people between Woodlands North and Bukit Chagar and is expected to ease pressure on road transport during peak travel periods.

Rail would address demand for moving many passengers across the border. The taxi proposals focus on journeys where carrying luggage, staying together as a group or reaching a particular doorway matters to the traveller.

Enforcement, public reaction and the next steps

The crackdown on illegal transport has become more visible. The 136 drivers caught between 2022 and July 2025 were involved in illegal cross border services, with some foreign registered vehicles impounded. Such cases typically involve point to point trips inside Singapore by drivers without the required licence. Authorities say checks will continue at hotspots and on routes commonly used by illegal operators.

Public discussion of ERP 2.0 reflects both demands for firmer enforcement and concerns about privacy or barriers for legitimate visitors. Some Singaporeans want technology to play a larger role in monitoring foreign vehicles offering paid rides inside Singapore.

An unnamed commenter in an online forum proposed requiring Malaysian vehicles to carry the equipment:

Next step should be to make Malaysian cars install ERP 2.0 OBU.

An unnamed participant in a Singapore Facebook group expressed frustration about local drivers bearing technology costs that foreign vehicles can avoid:

Obu them and make them pay and pay like us until they give up.

Political figures in Johor have urged an approach that supports livelihoods on both sides. They argue that drivers dependent on cross border trips should not be pushed out by sudden policy changes and that both governments should continue seeking mutually acceptable rules.

The dates framing the discussions are:

• Since 2023: Singapore registered cars and taxis have been fitted with ERP 2.0 on board units.
• 2022 to July 2025: 136 drivers were caught providing illegal cross border services.
• September 2, 2025: Talks cover licensed taxi improvements and possible tracking measures, with no plan to fully liberalise cross border ride hailing.
• Late 2026: The Johor Bahru Singapore Rapid Transit System is targeted to begin service.

Singapore agencies and their Malaysian counterparts continue to discuss bookings through apps, more designated points, larger vehicles and smoother checkpoint clearance. Driver associations also seek higher quotas, shared vehicle standards, mandatory receipts and visible meters.

The direction described in the talks is incremental change rather than a wholesale opening of the market. A larger licensed taxi pool and more practical journeys could help meet demand, while continued enforcement and clearer standards would support legitimate drivers. Any tracking measures involving foreign vehicles would require careful design, rules for data use and coordination between the two countries.

The Bottom Line

• Singapore is exploring whether ERP 2.0 location data could help tackle illegal cross border taxi services.
• Malaysian vehicles entering Singapore are not currently required to carry an OBU, creating a gap for tracking proposals.
• The reciprocal scheme allows up to 200 licensed taxis from each country, using Larkin Sentral and Ban San Street Terminal.
• Proposals include bookings through apps, more designated points, wider drop offs, higher quotas, larger vehicles and faster checkpoint clearance.
• Driver associations want common safety requirements, active fare meters and printed or digital receipts.
• Between 2022 and July 2025, 136 drivers were caught providing illegal cross border services, with vehicles impounded in some cases.
• Singapore has no plans to fully liberalise cross border ride hailing. Discussions centre on licensed taxis and continued enforcement.
• The rail link between Woodlands North and Bukit Chagar is targeted to begin service by late 2026.