Why are licensed cross-border taxis struggling between Singapore and Johor Bahru?

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Licensed Cross-Border Taxis Face Decline Due to Illegal Competition and Systemic Rigidity

Licensed cross-border taxi drivers operating between Singapore and Johor Bahru are experiencing a significant decline in business, primarily due to intense competition from illegal operators and the inherent inflexibility of the current regulatory framework. Drivers report spending hours waiting for passengers at terminals in both cities, a stark contrast to the direct, door-to-door services offered by unlicensed vehicles that are attracting travellers. This situation has led to a substantial reduction in fares and a struggle for survival among the approximately 300 licensed drivers participating in the bilateral scheme.
Illegal Operators Undercutting Licensed Services

A primary driver of the decline for licensed cross-border taxis is the proliferation of illegal private vehicle operators. These unlicensed services offer direct pick-up and drop-off at any location, bypassing the designated terminal points mandated for licensed taxis. This convenience factor, coupled with potentially lower fares, directly siphons passengers away from the official cross-border taxi services, leading licensed drivers to describe their livelihood as being "stolen."
Regulatory Limitations Restricting Operations

The current bilateral agreement restricts licensed taxis to operating strictly between designated border points in Singapore and Johor Bahru. This rigidity prevents them from offering the flexible, door-to-door services that passengers increasingly prefer. While enforcement actions by Singapore's Land Transport Authority (LTA), including vehicle impoundments, are underway against illegal services, the fundamental limitations of the licensed system remain a significant barrier to passenger adoption.
Passenger Preferences Shift Towards Convenience

Travellers between Singapore and Johor Bahru now favour services that provide comprehensive, door-to-door convenience, encompassing full-day trips. The traditional model of licensed cross-border taxis, which involves fixed routes and the use of inconvenient terminal locations, fails to meet these evolving passenger expectations. Despite high daily border crossings, the lack of flexibility in service offerings means licensed taxis are losing out on potential fares, with drivers often waiting for hours for a single booking.
Calls for Liberalisation and Potential Challenges

There are growing discussions and proposals to allow licensed cross-border taxis to operate via ride-hailing platforms and expand their designated operating points. Such liberalisation is seen as a potential strategy to boost tourism, particularly under initiatives like Visit Johor 2026. However, some taxi drivers express concerns that simply liberalising the service without addressing underlying issues of pricing and route flexibility could exacerbate competition and lead to a further decline in their earnings, rather than an increase in overall passenger demand.

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Why are licensed cross-border taxis struggling between Singapore and Johor Bahru?

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