LTA: Singapore tightens controls on deregistered vehicles after cases triple in a year

SINGAPORE: The Ministry of Transport (MOT), Land Transport Authority (LTA), and Singapore Police Force (SPF) are significantly strengthening controls over deregistered vehicles following a sharp increase in reported cases of such vehicles being used on public roads, from 75 cases in 2024 to 245 in 2025, a more than three-fold jump in a single year.

Deregistered vehicles are illegal to use on public roads, carry no valid insurance, and are not roadworthy. Some have been involved in hit-and-run accidents and criminal activities, including drug trafficking.

The Government substantially increased maximum penalties for keeping or using unregistered or deregistered vehicles from February 27, 2026; first-time offenders now face fines of up to S$20,000 and/or imprisonment of up to two years, with penalties doubled for repeat offenders. Further legislative and enforcement measures are now being introduced to address both the ongoing misuse of deregistered vehicles and the existing pool of undisposed vehicles circulating in Singapore.

The Land Transport and Related Matters (No. 2) Bill

The Bill, introduced for First Reading in Parliament on September 8, 2026, introduces four key measures:

The first is an Authorised Exporter Scheme requiring deregistered vehicles to be exported through LTA-Authorised Exporters operating from LTA-approved and secured premises, where all storage and export-related activities, such as cutting and packing, must take place. The scheme addresses the risk of rogue exporters failing to properly dispose of deregistered vehicles. LTA will provide the industry with a transition period of at least one year before the scheme takes effect.

The second measure shortens the grace period for vehicle owners to fulfil disposal requirements from one month to 14 days. Under the new scheme, owners need only hand their deregistered vehicles to Authorised Exporters, Authorised Scrapyards, or Authorised Export Processing Zone Operators; they will no longer need to submit disposal documents to LTA directly.

The third measure ensures offenders remain liable for prosecution for as long as they fail to meet disposal requirements, with persons convicted of failing to submit disposal proof liable for a daily fine of up to S$500 until compliance.

The fourth measure empowers the Government to prevent new or used vehicles from being registered to or transferred to high-risk individuals, including those with past records of keeping deregistered vehicles and juveniles under 18 who may be vulnerable to exploitation by criminal syndicates.

The Bill also criminalises the sale or supply of deregistered vehicles where the seller knows or is reckless as to whether the vehicle will be used on public roads. This offence carries a penalty of up to S$20,000 and/or imprisonment of up to two years, with penalties doubled for repeat offenders.

Wheel clamping from September 2026

On the enforcement side, deregistered vehicles detected during LTA and SPF patrols will be wheel clamped for seizure by LTA from September 2026. This allows officers to continue other duties rather than remaining at the scene.

Joint enforcement operations including roadblocks and patrols at identified hotspots will also be stepped up.

The Government said it takes a strong stance against any person using, keeping, buying, or selling deregistered vehicles for unlawful purposes, and that firm enforcement action will be taken against non-compliant vehicle owners.