SINGAPORE: Malaysia-registered taxis operating cross-border services into Singapore will face a significant change in permit charges from the start of next year, after the Land Transport Authority (LTA) announced that the fee structure will shift from a flat monthly payment to a per-trip system.
From Jan 1, 2027, Malaysia-registered taxis entering Singapore will be required to pay S$15 (US$11) for each trip under the ASEAN Public Service Vehicle Permit (PSVP) scheme. The new charge replaces the current fee of S$2 per month.
According to LTA, the revision is intended to reduce the widening cost disparity between Malaysia-registered taxis and their Singapore-registered counterparts operating within Singapore.
The authority issues Public Service Vehicle Licences (PSVLs) together with ASEAN PSVPs to Malaysia-registered taxis providing cross-border services between Singapore and Malaysia. Only taxis holding both valid permits are authorised to operate these services.
The revised fee follows changes introduced on May 4 to the cross-border taxi scheme, which expanded the service by allowing passengers to be dropped off anywhere in Singapore and throughout Johor. The updated framework also added more designated pick-up locations on both sides of the border.
LTA noted that the original PSVP fee had remained unchanged for more than three decades despite substantial increases in operating costs over the years.
It said the cost gap between Singapore and Malaysia-registered taxis has widened considerably, citing factors such as the Certificate of Entitlement (COE), the Additional Registration Fee (ARF), fuel prices and currency exchange rates.
“The PSVP fee for taxis has to be raised to narrow the cost gap between Malaysia-registered taxis and Singapore-registered taxis operating in Singapore,” the authority said.
Responding to questions about why it opted for a per-trip charge instead of simply increasing the monthly fee, LTA told CNA that the revised structure better reflects actual usage, ensuring operators pay according to the number of trips they make into Singapore.
The authority added that the per-trip model would also make it easier for operators to pass on the additional costs if they choose to do so.
Whether commuters ultimately bear the higher fees will depend on individual operators. LTA said it does not regulate cross-border taxi fares but requires fare transparency so passengers are aware of the charges before travelling.
The authority also reminded travellers to use only licensed taxis when making cross-border journeys, noting that these vehicles carry valid insurance coverage. It warned that passengers using unlicensed transport services may not have adequate protection or recourse if they are involved in an accident.
LTA said it will continue to take enforcement action against illegal point-to-point transport operators to protect commuters and the livelihoods of licensed taxi drivers. In May, enforcement operations targeting illegal cross-border transport services resulted in 14 people being caught.
