Addressing Cost Concerns of Singapore Taxi and Private Hire Drivers Given New Cross-Border Arrangements for Ride-Hailing Services

Written Reply to Parliamentary Question

Ms Poh Li San asked the Acting Minister for Transport in view of the new cross-border arrangements for ride-hailing and e-hailing vehicles between Singapore and Malaysia, what are the measures to address concerns by Singaporean taxi and private hire vehicle drivers regarding intensified competition from Malaysian taxis offering cheaper fares due to lower operating costs, and empty return trips.

Reply by Acting Minister for Transport Jeffrey Siow:

1.          The enhancements to the Cross-Border Taxi Scheme aim to benefit travellers and facilitate fairer competition between drivers in both countries. While it is not possible to equalise the operational costs between Singaporean taxis and Malaysian taxis, we are working on measures to ensure that cross-border trips are more viable for our taxi drivers. For example, only local taxis are allowed to pick up passengers from any point in their home country, while foreign taxis can only pick up passengers from designated pick-up points. This will allow our taxi drivers to better meet demand for cross-border trips starting in Singapore. Over time, we plan to increase the number of ride-hail pick-up points to include more frequented locations. The improved convenience for travellers can bolster demand for the return trip to Singapore.

2.          The Land Transport Authority will continue to enforce against illegal point-to-point transport services. Licensed cross-border taxis will be required to install Singapore’s ERP2 on-board unit for entry into Singapore, and must also be clearly identifiable by livery, tamper-proof vehicle plate with predefined prefix and taxi topper.

3.          As for fuel subsidies, that is a matter for the Malaysian authorities to consider.