
The LTA will replace the S$2 monthly permit with a S$15 per-trip fee in 2027. Malaysian operators keep a wide cost edge despite the hike.
Singapore's Land Transport Authority will replace the S$2 monthly permit for cross-border taxis with a S$15 per-trip fee starting 2027, the regulator said Wednesday. The 30-year-old fee had not changed since the 1990s.
The increase mirrors one of the widest car-cost gaps in the world. Singapore tops Julius Baer's luxury report as the most expensive city for car ownership. A Certificate of Entitlement can run over S$100,000 before the car cost itself, on top of a high Additional Registration Fee. The LTA cited those costs along with fuel prices and the exchange rate as reasons Singapore operators' expenses far outpace those across the causeway.
That gap shows in what drivers pay just to put a taxi on the road. Haniff Mahbob, a cross-border driver, told The Straits Times a Malaysia-registered taxi rents for RM30 to RM50 (US$7 to US$12) a day. A Singapore cab costs S$100 to S$130. Because fare rates are set the same on both sides, Malaysian operators should stay ahead even after the new fee takes hold, he said.
Only Malaysia-registered taxis holding a Public Service Vehicle Licence and an ASEAN Public Service Vehicle Permit may run legal cross-border routes. The LTA said it chose a per-trip charge over a higher monthly fee because it better tracks actual usage and lets operators pass on costs cleanly if they choose. It does not set cross-border fares, the regulator added, leaving any surcharge decision to operators themselves.
The S$15 fee is part of a wider overhaul. Starting May 4, cross-border taxis can drop passengers anywhere in Singapore and across Johor rather than only at fixed terminals. Pick-up points expanded on both sides. Fares increased: a four-seater run from Ban San Street Terminal in Bugis to Larkin Sentral in Johor Bahru now costs S$80, up from S$60. The return leg within 35 km is RM240 (about S$75), up from RM120, The Straits Times reported. The quota of licensed cross-border taxis each side may run will rise from 200 to 500.
Mohd Suhaimi Saidi, who chairs the Johor Bahru-Singapore Cross-Border Taxi Association in Malaysia, called the S$15 fee manageable since drivers rarely make more than one Singapore run a day. He had hoped for a smaller increase, he said.
Much of the rework targets illegal operators. The LTA said it would keep acting against unlicensed point-to-point services, warning such cars lack proper insurance and leave passengers with no recourse after a crash.
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