What is the LTA aiming to fix with the fee structure change?

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The LTA Aims to Equalise Operating Costs for Cross-Border Taxis

The Singapore Land Transport Authority (LTA) is adjusting the fee structure for Malaysian taxis entering Singapore to reduce the disparity in operating expenses between Malaysian and Singapore-registered taxis that provide cross-border services. This change will see the existing S$2 monthly pass replaced by a S$15 per-entry fee for Malaysia-registered taxis, effective from January 1, 2027. This revised model is intended to create a more level playing field for taxi operations between the two countries.
Transition from Monthly Pass to Per-Entry Fee

Currently, Malaysian taxis operating between Singapore and Malaysia are subject to a S$2 monthly pass. However, this system is being phased out. Starting January 1, 2027, Malaysia-registered taxis will incur a fee of S$15 for each instance they enter Singapore. This marks a significant shift from a fixed monthly charge to a usage-based fee, directly impacting the cost of cross-border trips.
Rationale for Narrowing the Cost Gap

The primary objective behind this fee revision is to narrow the operating cost gap between Malaysian taxis engaged in cross-border services and their Singapore-registered counterparts. The LTA issues Public Service Vehicle Licences (PSVLs) and Asean Public Service Vehicle Permits (PSVPs) to Malaysian taxis authorised for such operations, but the fee structure has not previously reflected a comparable cost basis to Singaporean taxis.
Alignment with Expanded Cross-Border Operations

This fee adjustment follows the significant expansion of cross-border taxi operations that commenced on May 4. Under the updated framework, licensed taxis are now permitted to drop off passengers anywhere within Singapore and across Johor. Additionally, more designated pick-up points have been established on both sides of the Causeway, facilitating greater flexibility for both drivers and passengers.

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What is the LTA aiming to fix with the fee structure change?

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