S’pore, Malaysia to allow cross-border taxi drop-offs anywhere; increase quota to 500 each

SINGAPORE – Cross-border taxi passengers will be able to drop off anywhere in their destination country, under new agreements by Singapore and Malaysia aimed at improving travel convenience between the neighbouring nations.

Foreign taxis will still only be allowed to pick passengers up at designated points, to prevent them from providing local taxi point-to-point services, both transport ministries said in a joint statement on Dec 5. It did not include when the changes will take effect.

Currently, cross-border cabs are only allowed to use one designated pickup and drop-off point after they cross the border.

This is Larkin Sentral Terminal, the main public transport terminal in Johor Bahru, for Singapore-registered taxis; and Ban San Street Terminal in Singapore for Malaysian taxis.

The two countries will gradually increase the number of pickup points for ride-hailing or e-hailing app bookings, the statement added.

Each country will also gradually increase its quota for licensed taxis from 200 to 500.

This will start with each country increasing its quota by 100, prioritising larger and more premium vehicles that can address the needs of larger groups and business travellers.

The countries aim to do this “subject to (the) effective implementation of safeguards against illegal domestic trips and insurance requirements”.

The statement came after a meeting between Malaysian Transport Minister Anthony Loke and Singapore Acting Transport Minister Jeffrey Siow at the

12th Singapore-Malaysia Leaders’ Retreat

on Dec 4, where prime ministers Lawrence Wong and Anwar Ibrahim also witnessed the exchange of several agreements to deepen cooperation on areas such as anti-drug efforts and healthcare.

Both countries will also work towards improving the insurance coverage of cross-border taxis, and speeding up claims processing in the event of an accident, it added.

They also agreed to work towards a regulatory regime for cross-border ride-hail and e-hailing platforms and to clearly identify licensed cross-border taxis.

Mr Loke and Mr Siow acknowledged the demand for more convenient cross-border transport services.

To meet this demand, and to curb the provision of illegal services, they agreed that the Land Public Transport Agency of Malaysia and the Land Transport Authority (LTA) continue close discussions on enhancements to the cross-border taxi scheme, to achieve these outcomes.

This comes after several months of discussions. The issue of unmet demand for legal cross-border taxi services surfaced in mid-2025, after the Singapore authorities

stepped up enforcement against companies offering illegal services

.

The clampdown came after ride-hailing drivers in Singapore tipped off the authorities that Malaysia-registered cars were turning up at locations like Changi Airport and Gardens by the Bay to ferry passengers within Singapore.

The two countries will also work towards enhancing cross-border bus services for tourism, the statement said.

Both ministers have asked their countries’ agencies to work towards aligning their regulatory regimes and to do so “in the spirit of reciprocity”.

The statement noted that besides taxi services, travellers from both countries rely on cross-border bus services for tourism, including to destinations beyond Johor Bahru.

“While these options have served travellers well, both ministers recognised that a wider range of services can make bus travel a more attractive option.”

These enhancements and principles agreed to by both ministers reflect both countries’ continued commitment to improving cross-border connectivity and the commuting experience for travellers between Singapore and Malaysia.

The statement added that officials from both countries will keep up their close engagement, and work expeditiously towards an agreement on and implementation of enhancements to cross-border taxi and bus services.

It noted that land transport links between Singapore and Malaysia are among the busiest in the world, reflecting strong business links and people-to-people ties.

Further improvements to the convenience of cross-border passenger transport services can both benefit travellers and facilitate fairer competition between transport providers and drivers in both countries, it said.

In a Facebook post on Dec 5, Senior Minister of State for Transport Sun Xueling said the two sides are committed to improving cross-border taxi services to better meet the needs of travellers, while curbing illegal services.

“These measures aim to make cross-border travel more seamless, safe and efficient for all,” she added.

In response to the announcement, National Trades Union Congress (NTUC) assistant secretary-general and adviser to the National Taxi Association (NTA) Yeo Wan Ling said the association welcomes the enhancements.

They will, along with the Johor-Singapore Special Economic Zone, open up larger market opportunities for Singapore cabbies, allowing more of them to tap the growing demand for cross-border transport, she said.

Ms Yeo, who is also an MP for Punggol GRC, added that NTA has over the years engaged the Ministry of Transport (MOT) to raise taxi drivers’ concerns and to push for more sustainable earning opportunities under the cross-border taxi scheme.

She added that the NTA, which is affiliated with the NTUC, is encouraged that the Singapore Government is working with the Malaysian government to review the scheme’s framework.

The NTA will continue to work closely with the MOT and the LTA to ensure that principles of fair competition and a level playing field are upheld so that drivers’ interests are protected as these changes are implemented, said Ms Yeo.