SINGAPORE/MALAYSIA: Cross-border taxi fares between Malaysia and Singapore are set to change after the Land Transport Authority (LTA) announced a significant increase to the Public Service Vehicle Permit (PSVP) fee for Malaysia-registered taxis entering Singapore, rising from S$2 per month to S$15 per trip, effective January 1, 2027.
The sharp shift in fee structure, from a flat monthly rate to a per-trip charge, marks a significant change in how cross-border taxi operations are priced. Furthermore, the LTA stated that this change is aimed at narrowing the cost gap between Malaysia-registered taxis and their Singapore-registered counterparts operating in Singapore.
How the licensing system works
Malaysia-registered taxis are required to hold both a Public Service Vehicle Licence (PSVL) and an ASEAN Public Service Vehicle Permit (PSVP) issued by the LTA in order to legally operate cross-border services between the two countries. Only taxis holding both a valid PSVL and PSVP are authorised to carry passengers on these routes.
Under the current structure, the PSVP fee sits at just S$2 per month. It remains a flat rate that, regardless of how frequently a taxi crosses the border, costs the same. From January 2027, that changes to S$15 each time a Malaysia-registered taxi enters Singapore, meaning higher-frequency operators will feel the increase more strongly.
What this means for cross-border commuters
The fee increase is not directed at passengers directly, but the reality is that higher operating costs for Malaysia-registered taxis are likely to be at least partially passed on through fares. For commuters who regularly use cross-border taxi services, particularly those travelling between Singapore and Johor Bahru, the change is worth factoring into your travel budgets ahead of 2027.
LTA has also reiterated to commuters to only use licensed taxis for cross-border travel. Licensed vehicles carry valid insurance coverage, which means passengers have recourse in the event of a traffic accident. Unlicensed vehicles, by contrast, are not appropriately insured, leaving passengers potentially without any protection if something goes wrong.
LTA said it will continue enforcement action against illegal point-to-point transport services to protect both commuter safety and the livelihoods of licensed drivers.
Netizens react
The announcement drew a sceptical response online, with many commenters questioning whether the fee increase would actually achieve its stated goal or simply create new problems.
Several pointed to the likelihood that costs would ultimately fall on passengers rather than operators. “All the government cares about is profit. The fee will not deter as it will be defrayed by the consumers. This doesn’t solve the whole issue of illegal operators taking up our platform drivers’ income,” one commenter wrote.
Another was more blunt about their reading of the policy’s intent: “The reason they give is only to put money in their own pockets.”
Some questioned whether the measure actually delivered on its stated aim of levelling the playing field. “If they really want to narrow the cost gap, then they must give something back to Singapore taxis right?” one user asked, pointing out that reducing the advantage of Malaysian taxis doesn’t automatically translate into a benefit for local operators.
The most pointed critique came from a commenter who stated: “So eventually the cost will be passed to the passengers and this will again drive up demand for those illegal transport again. Really brainless.”
It’s a concern that shows a problem in the current cross-border transport policy: measures aimed at licensed operators can inadvertently push price-sensitive commuters toward unlicensed alternatives, undermining the very safety outcomes the policy is meant to protect.
The move, as stated, is intended to bring the operating cost structure of Malaysia-registered cross-border taxis closer in line with Singapore-registered taxis, which operate under a different and generally more costly licensing and regulatory framework. By switching to a per-trip fee rather than a monthly flat rate, the new structure also more accurately reflects actual usage. This means that taxis making frequent cross-border trips will contribute proportionally more than those making occasional ones. Whether that translates into a better deal for commuters, however, remains to be seen.
Read more: LTA: Seven drivers caught, vehicles impounded in latest crackdown on illegal cross-border ride-hailing
