Singapore and Malaysia to Expand Cross-Border Taxi Services, Combat Illegal Operators
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A significant increase in licensed cross-border taxi availability and relaxed drop-off restrictions are on the horizon for travelers between Singapore and Malaysia, aiming to address growing demand and curb illicit transport services. Announced on December 5th, the enhancements represent a commitment from both nations to improve connectivity and streamline the commuting experience.
Addressing Demand and Illegal Activity
For months, authorities have been grappling with an unmet demand for legal cross-border taxi services. This issue came to a head in mid-2025 when Singaporean authorities intensified enforcement against unregistered companies offering transportation, prompted by reports from ride-hailing drivers regarding Malaysia-registered vehicles operating illegally at key locations like Changi Airport and Gardens by the Bay.
The joint initiative, stemming from discussions at the 12th Singapore-Malaysia Leaders’ Retreat on December 4th between Malaysian Transport Minister Anthony Loke and Singapore Acting Transport Minister Jeffrey Siow, seeks to provide a viable alternative and level the playing field for legitimate operators. “We will gradually increase the number of pick-up points for ride-hail or e-hailing app bookings,” a statement released by both transport ministries confirmed.
Phased Increase in Taxi Quotas
Currently, each country permits 200 licensed taxis to operate across the border. This quota will be incrementally raised to 500 taxis per country. As an initial step, both Singapore and Malaysia will each add 100 taxis to the program. The expansion will prioritize larger and more premium vehicles, catering to groups and business travelers seeking enhanced comfort and capacity.
However, this increase is contingent upon the “effective implementation of safeguards against illegal domestic trips and insurance requirements,” officials emphasized. This underscores a commitment to maintaining regulatory control and ensuring passenger safety.
Expanded Drop-Off Convenience
A key change will allow cross-border taxis to drop passengers off at any location outside their country of origin. Previously, taxis were restricted to designated terminals – Larkin Sentral Terminal in Johor Bahru for Singapore-registered taxis and Ban San Street Terminal in Singapore for Malaysian taxis – significantly limiting convenience. This new flexibility is expected to greatly improve the travel experience for commuters.
Foreign taxis will continue to be restricted from picking up passengers except at designated points, preventing them from engaging in local point-to-point services. This measure is designed to protect the livelihoods of licensed local taxi drivers.
Enhancements to Ride-Hailing and Insurance
Beyond taxis, both countries are working towards a comprehensive regulatory framework for cross-border ride-hailing and e-hailing platforms. This includes a plan to clearly identify licensed cross-border taxis and gradually increase the number of pick-up points available for app-based bookings.
Furthermore, officials are committed to improving insurance coverage for cross-border taxis and expediting claims processing in the event of accidents. This focus on safety and security aims to build confidence among travelers.
Bus Services Also Under Review
The collaboration extends beyond taxis, with both ministers agreeing to enhance cross-border bus services, particularly for tourism. Agencies from both countries will work to align regulatory regimes “in the spirit of reciprocity,” potentially opening up new routes and improving the overall bus travel experience. Officials noted that travelers frequently utilize bus services to reach destinations beyond Johor Bahru.
Senior Minister of State for Transport Sun Xueling affirmed the commitment to these improvements in a Facebook post on December 5th, stating that the measures aim to make cross-border travel “more seamless, safe and efficient for all.”
The ongoing dialogue between the Land Public Transport Agency of Malaysia and the Land Transport Authority demonstrates a sustained effort to address the challenges and opportunities presented by the bustling land transport links between Singapore and Malaysia – connections that reflect the strong economic and social ties between the two nations. These improvements are expected to benefit both travelers and transport providers, fostering fairer competition within the industry.
