From January 1, 2027, Malaysian-registered taxis entering Singapore must pay a fee of S$15 per trip, replacing the current S$2 per month charge, the Land Transport Authority (LTA) announced [1, 2, 3, 4, 5, 6].

The increase aims to reduce the cost gap between Malaysian taxis and their Singapore counterparts, who pay higher rental rates and fees. Malaysian cross-border taxis typically rent for RM30 to RM50 per day, while Singapore-registered taxis rent for S$100 to S$130 daily [4, 5, 6].

Only Malaysian taxis with valid Public Service Vehicle Licences (PSVL) issued by the LTA and ASEAN Public Service Vehicle Permits (PSVP) may operate cross-border services to Singapore [1, 2, 3]. LTA urged passengers to use licensed taxis with proper insurance coverage, warning that unlicensed vehicles may not be insured and risk commuter safety. "LTA will continue to take enforcement action against illegal point-to-point transport services to safeguard the safety of commuters and livelihoods of licensed drivers," the authority said [1].

The fee hike follows a broader overhaul implemented on May 4, 2026. This included fare increases, more designated pick-up points in Singapore, and flexible drop-off locations with surcharges. For example, fares for a four-seater taxi from Ban San Street Terminal in Singapore to Larkin Sentral in Johor rose from S$60 to S$80 [1, 2, 4, 5, 6].

The quota of licensed taxis permitted to provide cross-border services from each country is increasing from about 200 to 500 vehicles [4, 5, 6]. Currently, Singapore has approximately 300 licensed cross-border taxis, while Malaysia has over 150 [2].

Mohd Suhaimi Saidi, chairman of the Johor Bahru-Singapore Cross-Border Taxi Association, said the S$15 fee is manageable. He noted, "while he had hoped the increase would be lower than $15, the fee is still bearable as drivers rarely make more than one trip a day to Singapore" [4].

Earlier enforcement operations in May 2026 caught 14 people involved in illegal cross-border taxi services [1].

The new S$15 per trip fee will take effect alongside the expanded taxi quotas starting January 1, 2027 [1, 2, 3, 4, 5, 6].