S’pore, Malaysia operators still provide cross-border transport for businesses despite risks

SINGAPORE/JOHOR BAHRU – On Sept 12, a Singapore-registered Toyota Noah belonging to a limousine service operator was impounded by the Malaysian authorities after it crossed the border at Tuas Checkpoint.

For the past year, the limousine service operator has been contracted to drive staff from an American company with operations in Singapore to its factory in Johor Bahru for meetings.

Speaking to The Straits Times on Sept 18, the spokesman for the Singapore limousine service company said it hopes to get its seven-seater car back after a court hearing in Malaysia.

Even though chartered car rides across the Singapore-Malaysia border are not allowed, individuals and companies have been able to book chauffeured rides to shuttle between the countries with ease until enforcement was stepped up in recent months.

The Singapore-registered limousine company, which had its car impounded, declined to be named because it wants to avoid losing even more business. Some of its Singapore-based multinational clients have suspended their contracts to drive staff across the border until they are assured that the arrangement is legal.

This follows media reports of drivers of foreign-registered vehicles being caught taking paying passengers across the border.

However, some companies and individuals continue to book such rides, which are more convenient than taking a cross-border taxi before transferring to a local taxi or private-hire car after crossing the border for the rest of the journey.

When asked why the Singapore-based company continues to provide the service even after having a car impounded, the spokesman said cross-border transport is a key part of the company’s business, adding that there is still substantial demand for it.

At least one Singapore government agency engages limousine services for cross-border transport. The HDB called for a tender in May for chauffeur-driven transport between Singapore and Malaysia.

A Housing Board spokesperson said that throughout the contract period, “the vendor must comply with all applicable regulations, such as regulatory requirements, set by the relevant authorities, including obtaining the necessary authorisations.

“HDB will exercise its rights to take the appropriate action should there be any non-compliance with these requirements.”

A spokesperson for the Land Transport Authority (LTA) said that if it is approached by other government agencies about making cross-border arrangements, the advice will be for them to use only licensed channels, which will be under the Cross-Border Taxi Scheme and coaches.

The LTA spokesperson added that when the authority’s employees have to travel to Malaysia for work, they use either public transport or their personal vehicles.

Another limousine company that used to drive clients across the border is Limo2Go. At its peak, the firm dispatched around 40 trips a month. The Singapore-registered company had five corporate contracts signed with companies in Singapore that needed transport into Malaysia.

With news of clampdowns, at least one of the company’s clients suspended cross-border travel arrangements, said Mr Erman Abdullah, Limo2Go’s head of operations.

In mid-September, Limo2Go stopped cross-border services completely after one of its drivers was stopped and questioned by the Malaysian authorities.

“We initially planned to continue fulfilling our existing contracts despite the clampdowns, but after this incident, we don’t want to risk (losing our cars) any more,” said Mr Erman.

There are also Malaysian transport companies with corporate contracts to take clients from Singapore to Malaysia.

Their Malaysia-registered cars are not allowed to pick up paying customers in Singapore.

If caught, the drivers can be fined up to $3,000 and/or be jailed for six months. The car used can also be forfeited.

Among them is Saidina As Siddiq Travel & Tours based in Johor, Malaysia.

Mr Muhammad Siddiq Kumyu, the travel agency’s driver and director, told ST that to avoid getting into trouble, he is splitting the job by hiring a Singapore-registered car and driver to bring the passenger to Johor Bahru.

There, his own Malaysia-registered car will pick up the passenger and complete the journey.

Mr Siddiq said two of his Hyundai Staria cars, worth RM180,000 each (S$55,200), were seized by Singapore’s LTA earlier in 2025 for operating without a licence in the country.

The company still takes seafarers landing in Changi Airport to Johor Port in Pasir Gudang.

Mr Siddiq said his client demanded the existing contract be honoured, stepped-up enforcement measures notwithstanding, and that any changes to the arrangement take place after the contract expires in 2026.

What triggered the heightened enforcement?

The clampdown began 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.

Such illegal services also undermine the Cross-Border Taxi Scheme between Singapore and Malaysia. Up to 200 taxis from both sides can operate under the scheme.

These are regular taxis that also transport passengers within the respective countries. The licence allows them to use one designated pickup and drop-off point after they cross the border – 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.

A one-way taxi trip from the Ban San terminal to Johor Bahru costs $60, which can be split among four passengers.

Singapore taxi operators including ComfortDelGro

and Strides Premier have recently started marketing cross-border services.

Their taxis will pick up passengers from anywhere in Singapore and take them to Larkin Sentral for between $80 and $120.

In contrast, the illegal operators usually offer a door-to-door service.

Depending on the destination and type of vehicle used, a trip from Singapore to Johor can cost between $70 and $100, although the rates have gone up since enforcement was stepped up.

Licensed taxi drivers like Mr Haniff Mahbob, 72, who has been shuttling passengers between Singapore and Johor since 1980, said business has been severely affected by the rise of illegal operators.

These days, he can wait at the Ban San terminal for up to five hours before there are enough passengers to make the $60 fare.

Another licensed cabby, Mr Soukhdev Singh, 62, told ST that business improved briefly after the LTA in July and early August publicised its enforcement efforts, catching unlicensed drivers using foreign-registered cars to ferry passengers in Singapore.

The Singapore taxi drivers said the touts appeared to be more discreet these days.

Both the National Private Hire Vehicles Association and the National Taxi Association in Singapore have said illegal passenger transport services threaten the livelihood of licensed drivers.

LTA continues to step up its enforcement efforts.

Most recently, on Oct 2, 10 foreign-registered vehicles

were impounded in operations

conducted across Singapore.

Senior Minister of State for Transport Sun Xueling said on Facebook on Oct 3 that the Singapore authorities have seized 102 vehicles since July 2025 for providing illegal cross-border and point-to-point services.

“The drivers do not have the requisite licences and do not have insurance coverage for passengers,” said Ms Sun.

In earlier media reports, fewer than 40 drivers had been caught doing so between 2022 and 2024.

The authorities in Malaysia are also stepping up enforcement against Singapore-registered cars used to provide ride-hailing services illegally in Johor.

In August, the authorities in Malaysia seized four Singapore-registered vehicles for offering such services without approval.

Under Malaysia’s road laws, drivers caught operating public service vehicles in Malaysia without the necessary licences can be taken to court and have their vehicles seized by the authorities.

The governments from both sides have met to discuss cross-border passenger transport but no changes have been announced, stressing that it requires both sides to agree before any action will be taken.

LTA said it does not plan to allow private-hire cars to offer cross-border transport services.

The authority is looking to improve the existing cross-border taxi service, taking in suggestions from the industry.

So far, the ideas proposed include having more pickup and drop-off points, allowing more types of vehicles including larger seven-seater cars, arrangements to enable licensed taxis to cross the border more quickly, raising the quota for cross-border taxis, and allowing app-based bookings.

Malaysia’s Transport Minister Anthony Loke said in August that his ministry is willing to introduce cross-border ride-hailing services with Singapore, in response to several groups that have lobbied for the government to negotiate with Singapore to relax its clampdowns.

An informal group of 30 representatives from more than 400 licensed travel and tour operators said in a press conference in August that enabling them to provide cross-border transport services with seven-seater cars aligns with the Johor-Singapore Special Economic Zone, a business and investment zone, as business activity on both sides of the border increases.

In response, Johor’s top official for Public Works, Transport, Infrastructure and Communication, Mr Mohd Fazli Mohamad Salleh, told the media on Aug 23 that Johor’s state government has submitted a proposal to Malaysia’s Transport Ministry.

His committee had proposed five more pickup and drop-off points for cross-border passenger transport service vehicles, as well as having “some vehicles” provide door-to-door services in Johor Bahru.

“It’s not only Malaysian e-hailing services that are barred from entering Singapore, but Singaporean drivers offering the same services here have also faced action from our Transport Ministry,” he was quoted as saying by Malaysian newspaper The Star.

Meanwhile, while some cross-border transport providers in Singapore and Malaysia that ST spoke to have halted their services entirely, some still continue to operate under the radar.

Mr Ahmad Khaizurin Shario, director of Johor-based Khaimal Travel & Tours, told ST on Oct 1 that Malaysian and Singaporean drivers are still using privately owned multi-purpose vehicles to do cross-border jobs, but mostly for one-way trips from their home country to the other.

“I hope that the authorities from both sides of the border can find a mechanism that allows for cross-border transport in a way that supports both Malaysian and Singapore drivers.”