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

SINGAPORE: Singapore’s Land Transport Authority (LTA) has clarified that it has no intention of fully liberalising cross-border ride-hailing services between Singapore and Malaysia, dispelling speculation raised in recent Malaysian media reports.

The authority’s statement on Aug 3, reported by Channel News Asia (CNA), follows discussions held between Singapore and Malaysian officials on Aug 1 regarding cross-border transport arrangements. While the possibility of enabling e-hailing platforms to operate across the Causeway was raised during the bilateral meeting, the LTA confirmed that no decision has been made.

“While we are open to ideas to improve the cross-border commuting experience, we would like to clarify that LTA has no plan to fully liberalise cross-border point-to-point transport via ride-hail services,” the authority said in its statement.

Licensed taxis to remain the backbone of cross-border services

Instead of extending services to ride-hailing giants like Grab, Singapore is focusing on improving existing cross-border taxi arrangements. Under the current scheme, up to 200 licensed taxis from each side are permitted to ferry passengers between Singapore and Johor Bahru.

However, these taxis are only allowed to pick up and drop off passengers at one designated point in the other country, Ban San Street Terminal for Malaysian taxis and Larkin Sentral for Singapore taxis.

LTA noted that the full quota of cross-border taxis is not currently being maximised, and it is encouraging full take-up to better meet commuter demand. In tandem, it is considering expanding the number of boarding and alighting points in both countries, as well as integrating ride-hailing platforms for booking these licensed taxi services.

These steps, according to LTA, are aimed at enhancing convenience without upending the regulated framework that protects the interests of local taxi and private hire drivers.

Johor’s proposal for on-demand transport not yet agreed upon

Reports in Malaysia, including The Malay Mail, suggested that Johor and Singapore were considering the launch of a cross-border e-hailing service. Johor Menteri Besar Datuk Onn Hafiz Ghazi stated that such a service could provide more flexible transport options and help ease congestion, as quoted by CNA.

However, the LTA made it clear that any changes to the cross-border point-to-point transport regime would require mutual agreement between both governments; the existing taxi scheme operates on a reciprocal basis, and no decision has been made with finality for now.

Read related: Johor and Singapore explore cross-border e-hailing to ease congestion

Open for future discussions

Despite this stance, however, LTA’s openness to using ride-hailing apps for licensed taxis and to revisiting this discussion shows a pragmatic middle ground: embracing technology without dismantling the structure of the existing scheme.

In short, Grab-style cross-border rides remain off the table for now, but slow and measured changes to improve convenience are on the horizon. This would be possible as long as they fit within a regulated and reciprocal framework.

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