Johor rep calls for regulated cross-border ride-hailing framework amid LTA crackdown

JOHOR BAHRU: A Johor state assemblyman has called for a regulated cross-border ride-hailing framework, urging both Malaysia and Singapore to find a common path forward amid Singapore’s latest crackdown on illegal transport services.

In a Facebook post on July 30, Johor lawmaker Andrew Chen highlighted how increased enforcement by Singapore’s Land Transport Authority (LTA) has caused mounting distress among Malaysian ride-hailing drivers who rely on cross-border trips for their livelihoods.

According to Mothership, Chen said the situation has left “many Malaysian drivers frustrated and struggling,” and warned against what he termed a “blanket ban” that fails to account for the social and economic importance of cross-border mobility.

Singapore’s crackdown targets illegal foreign ride-hailing drivers

Singapore has recently stepped up its enforcement efforts against foreign-registered vehicles offering unauthorised point-to-point services within the country.

On July 12, LTA revealed that 22 drivers had been caught operating illegally at Changi Airport and Gardens by the Bay, offering transport to and from Malaysia without proper authorisation. Mothership reported that a total of 116 drivers have been apprehended since 2022, with consequences ranging from fines of up to S$2,600 to vehicle forfeiture.

Any driver, including those of foreign-registered vehicles, is required to hold a valid Public Service Vehicle Licence (PSVL) or Private Hire Car Driver’s Vocational Licence (PDVL) to operate point-to-point transport services under Singaporean law. They must also stick to approved pick-up and drop-off points, which are usually stipulated in the reciprocal taxi agreement between Singapore and Malaysia.

Balancing the interests of both regions

While Chen acknowledged Singapore’s legitimate interest in maintaining traffic order and passenger safety, he argued that a zero-tolerance approach is not sustainable or equitable.

“Cross-border mobility is the lifeblood of bilateral relations between Malaysia and Singapore—economically, politically, and socially,” he wrote. “This should not be treated as a zero-sum game.”

He proposed a mutually beneficial regulatory mechanism that would protect commuters while allowing qualified drivers from both nations to operate legally. His suggested framework includes:

• Mandatory PSV (Malaysia) or PDVL (Singapore) licences
• Annual health checks for drivers
• Periodic vehicle inspections at certified centres
• Compulsory accident insurance coverage for passengers

Chen stressed that such a framework could strike a balance between public safety and economic inclusion, while respecting the regulatory priorities of both nations.

Singapore’s cautious stance on liberalising cross-border services

Chen’s remarks come just days after Singapore’s LTA clarified that it has no plans to liberalise cross-border ride-hailing to include private platforms such as Grab.

Instead, the LTA reiterated its support for the existing reciprocal taxi scheme, which allows up to 200 licensed taxis from each country to operate cross-border trips using designated terminals — Larkin Sentral in Johor and Ban San Street Terminal in Singapore.

As Mothership reported, a total of nearly 300 taxis are currently licensed under the arrangement, which ensures that foreign vehicles do not operate freely within each other’s domestic market.

LTA emphasises that this system seeks to protect the interests of both passengers and the livelihoods of Singapore’s licensed drivers, while maintaining cross-border cooperation.

Read related: LTA clears the air on cross-border e-hailing: Only licensed taxis, not Grab-style services

Significance for Singapore

Unregulated ride-hailing could undercut Singaporean drivers and compromise established safety protocols. However, these calls for better cross-border transport mean pressure will likely continue to increase for both governments to formulate new policies regarding this matter.

Singaporean commuters will have to remain reliant on licensed cross-border taxis and buses, for now. In the meantime, these discussions on improving regional mobility will likely continue for the foreseeable future until both regions come up with proper resolutions.

Read also: Singapore to review Malaysia’s request to start cross-border buses earlier