Malaysia Taxi Permit Fee Hike Set for Singapore Entry in 2027

Singapore will raise permit fees for Malaysian taxis entering the republic from 2027, narrowing operating cost differences while strengthening regulation and enforcement against illegal cross-border transport services.

Malaysia Taxi Cross-Border Fees

Singapore will significantly increase permit fees for Malaysian-registered taxis entering the country beginning Jan 1, 2027, as part of efforts to reduce operating cost disparities between Malaysian and Singaporean cross-border taxi operators.

The Land Transport Authority (LTA) announced that the Public Service Vehicle Permit fee will rise from the current S$2 per month to S$15 per trip. The move follows broader reforms introduced in May 2026 to make legal cross-border taxi services between Singapore and Malaysia more flexible and attractive for commuters.

The earlier reforms included higher regulated fares, additional designated pick-up points, and greater flexibility for licensed taxis to drop off passengers across Singapore and Johor with a fixed surcharge. Cross-border taxi fares were also revised upward, with trips between Ban San Street Terminal and Larkin Sentral seeing substantial increases.

Industry representatives acknowledged the upcoming permit fee hike, although some had hoped for a lower amount. Johor Bahru-Singapore Cross-Border Taxi Association chairman Mohd Suhaimi Saidi said the increase remains manageable, as most drivers make only one trip daily into Singapore.

Despite the higher fee, Malaysian taxi operators are expected to retain a cost advantage due to significantly lower vehicle rental expenses compared with Singapore-based drivers.

Authorities also stressed the need to combat illegal cross-border transport services, citing recent enforcement operations that resulted in vehicle impoundments and warnings to commuters about using unlicensed operators.