Malaysian taxis that drive into Singapore will have to pay S$15 (around RM48) every time they cross the border, starting 1 January 2027. Right now, they only pay S$2 a month, no matter how many trips they make. The flat monthly fee has been the same for over 30 years.

Singapore’s transport authority, the Land Transport Authority (LTA), announced the change on 25 June. LTA said the new fee is meant to make what Malaysian taxis pay closer to what Singaporean taxis pay to operate on the same routes.

A Malaysian taxi driver who crosses into Singapore twice a day, every working day, currently pays S$2 for the whole month. Under the new rules, that same driver would pay S$15 per crossing, which works out to around S$900 a month.

Other LTA Changes To Cross-Border Taxis

The fee increase is part of a bigger set of changes to how cross-border taxis work.

On 4 May, LTA changed the rules so that licensed taxis can now drop passengers off anywhere in Singapore and anywhere in Johor. Before this, they could only stop at specific points like Ban San Street Terminal in Singapore and Larkin Sentral in JB. More pickup points have been added on both sides of the Causeway, and fixed fares were also raised.

The changes made in  May were meant to make licensed taxis a better option for passengers and reduce demand for illegal ride services. The new permit fee, announced less than two months later, deals with the cost side by raising what Malaysian taxi drivers pay to enter Singapore.

Malaysian taxis need two permits from LTA to legally carry passengers across the border, a Public Service Vehicle Licence (PSVL) and an ASEAN Public Service Vehicle Permit (PSVP). Without both, they are not allowed to operate.

Fare Decisions Are Up To Operators

LTA does not control how much cross-border taxis charge you for a ride. The authority told The Straits Times that taxi operators can choose whether to absorb the higher permit cost or pass it on to passengers.

LTA said the per-trip fee better matches how often drivers cross the border. Under the old flat fee, a driver making dozens of crossings a month paid the same S$2 as one making a single trip.

Running a taxi in Singapore is already much more expensive than in Malaysia. It costs between RM30 and RM50 a day to rent a taxi in Malaysia, compared to S$100 to S$130 in Singapore. A big reason for this is Singapore’s Certificate of Entitlement (COE), which is a fee drivers must pay just for the right to own a vehicle. Vehicle taxes, fuel costs, and the exchange rate between the two currencies add to the difference.

Only Licensed Taxis Carry Insurance

LTA also reminded passengers to only use licensed cross-border taxis. If you take an unlicensed vehicle, you may not be covered by insurance. That means if something goes wrong during the trip, you may have no way to claim or get help.

LTA said it will keep cracking down on illegal ride services. In May, 14 people were caught running unlicensed cross-border transport. In a separate operation in June, seven drivers were caught and had their vehicles taken away.

If you take cross-border taxis between JB and Singapore, the new fee starts on 1 January 2027.

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