Payment of fines doesn’t guarantee release of vehicles used in illegal cross-border rides: LTA
Sign up now: Get ST's newsletters delivered to your inbox
Malaysian news outlet The Star reported on Aug 24 that about 400 tour agencies were facing bankruptcy after their luxury MPVs were seized in Singapore.
ST PHOTO: KUA CHEE SIONG
Follow topic:
SINGAPORE – The payment of fines by drivers convicted of providing illegal cross-border passenger transport services does not guarantee the release of the impounded vehicles involved.
Instead, upon conviction, separate proceedings will be held to determine if the vehicle is to be forfeited, the Land Transport Authority (LTA) said in a media reply on Sept 4.
Malaysian news outlet The Star had reported on Aug 24 that about 400 tour agencies were facing bankruptcy after their luxury multi-purpose vehicles (MPVs) were seized in Singapore.
The news report said the vehicles were still impounded here despite their owners paying off the fines, after the drivers were caught for providing illegal cross-border transport services.
According to the report, 476 travel agencies in Johor are registered with its Tourism, Arts and Culture Ministry, with about 3,000 MPVs operating these cross-border services.
LTA said it has investigated more than 100 foreign-registered vehicles for providing such services in 2025, with most remaining impounded while investigations and court proceedings are ongoing.
These vehicles may also include those registered to Malaysian tour companies, it added.
“Where investigations establish that the vehicles were not involved in providing illegal P2P (point-to-point) services, LTA will release the impounded vehicles to their owners promptly,” the authority said.
It added that there are existing schemes that allow Malaysian tour companies to license tour buses to transport tourists in and out of Singapore.
These include the intercity express bus services, with fixed stopping points in Singapore, and tour buses for sightseeing purposes.
All Malaysia-registered buses must have an Asean Public Service Vehicle Permit (PSVP) to operate across borders, LTA said.
Also, only Malaysia-registered taxis with valid public service vehicle licences and PSVPs, which are issued by LTA, are allowed to provide cross-border transport services between Singapore and Malaysia, said the authority.
A Singapore-issued Vehicle Entry Permit (VEP) allows foreign-registered cars and motorcycles to enter Singapore only for private purposes.
“VEP applications by individuals or commercial entities intending to provide hire-and-reward, e-hailing, or passenger transport services are rejected,” LTA said.
“Even if they have a VEP, it is illegal for Malaysia-registered cars, including private-hire cars, to provide cross-border passenger transport into and within Singapore.”
Efforts to clamp down on illegal transport services have been stepped up recently following complaints from drivers.
Between 2022 and July 2025, 136 drivers were caught for providing such services
On Aug 3, LTA said there was no decision made after a cross-border ride-hailing service was among several proposals brought up in a meeting between Acting Transport Minister Jeffrey Siow and Johor state’s chief minister, Datuk Onn Hafiz Ghazi.
It added that there were no plans to fully liberalise
Industry associations in Singapore have said providers of illegal point-to-point services operating across the border create unfair competition and pose safety risks.
In a meeting between the authorities and industry associations last week, participants discussed regulations and improvements to such services
Stressing that it will continue enforcement against illegal cross-border transport services, LTA said on Sept 4 that the public can report such services through its website
Additional reporting by Calista Wong
