Travel agencies in Johor hit hard after Singapore bars premium tour vehicles, call for cross-border fix

JOHOR BAHRU: Rows of premium MPVs, once a common sight crossing the Causeway daily, now stand idle in Johor. For the drivers and agencies that own them, what used to be a thriving business has slowed to a crawl.

More than 400 Johor-based travel agencies say they’ve seen business fall by half since Singapore stopped approving Vehicle Entry Permit (VEP) applications for their tour vehicles in 2023. The restriction applies to popular models like the Toyota Alphard, Toyota Vellfire, Hyundai Staria, and Hyundai Starex — vehicles that had become the first choice for many Singaporean travellers heading into Johor.

“The travel agencies’ vehicles, consisting of several premium multi-purpose vehicles (MPVs)… have had their VEP applications rejected,” explained Khairul Anuar Mokhtar, who spoke on behalf of the affected operators, as reported by Malay Mail.

The frustration, he added, isn’t just about money. These vehicles often serve groups that need more care than a standard bus can provide. “Our services are usually used by elderly passengers and those who are disabled, in addition to corporate clients who want to enter Singapore without much immigration hassle,” Khairul said.

Travel agencies argue that they are being unfairly sidelined despite meeting high safety standards. Tourism Malaysia’s licensed Hire & Drive cars, for example, undergo six-monthly inspections, carry passenger insurance, and are driven by PSV-licensed drivers approved by the Transport Ministry and Tourism Ministry. Yet these too have been barred.

“As a result of the restriction, this void is now filled by private vehicles operating illegally that enter Singapore and cater to tourists from both countries,” Khairul noted, as quoted by Malay Mail. For agencies, this means not only losing income but also watching unlicensed operators take over the market.

The problem has been compounded by enforcement. 119 premium vehicles have already been seized by Singapore’s Land Transport Authority (LTA), leaving many operators stuck paying loans on vehicles they can no longer use. Khairul described the situation as damaging to both livelihoods and Johor’s image as a tourism hub.

Why it matters for Singapore

For Singaporeans, the ripple effects are already being felt. Premium MPVs once offered a comfortable, direct ride into Johor’s heartlands, theme parks, or even family homes, especially for the elderly and those with mobility challenges. With these services curtailed, travellers now face longer waits, more transfers, and fewer options.

“The problem is that the four premium vehicles are usually the top choice of tourists from Singapore to Johor, but are not allowed to operate due to the lack of a VEP,” Khairul said.

The clampdown has pushed some travellers toward illegal private cars, which operate without the same safety standards or insurance coverage. This not only puts passengers at risk but also undermines the cross-border tourism industry.

For now, the ban remains in place, though Malaysia’s Transport Minister Anthony Loke recently said he is ready to discuss cross-border e-hailing with Singapore, which was a conversation that had previously stalled.

Until then, Johor’s licensed drivers can only wait, watching their once-busy MPVs sit idle, while travellers on both sides of the Causeway adjust to life without a service many had quietly come to rely on.

Read also: Johor reps, operators propose roadmap to regulate cross-border chartered car service