Malaysian taxis in Singapore must install the ERP 2 on-board unit before 2027 for usage-based charging, with daily flat fee alternatives available.
SINGAPORE: Malaysian taxis operating in Singapore will be required to install the Electronic Road Pricing (ERP) 2 system’s on-board unit ahead of its mandatory rollout on Jan 1, 2027.
Acting Transport Minister Jeffrey Siow said the move is necessary to allow the government to track and enforce against such vehicles if needed.
“For foreign-registered private vehicles, we encourage them to install OBU for usage-based charging, although we recognise that occasional visitors may prefer not to do so,” he said during the second reading of the Land Transport and Related Matters Bill.
Vehicles without an OBU can still pay a daily flat fee of S$5 (RM15), similar to cars without the current in-vehicle unit.
Siow said the OBU will be mandatory for all Singapore-registered vehicles as it uses satellite technology, rather than gantries, to determine location for charging.
As of January 31, about 930,000 vehicles in Singapore, or more than 93%, have installed the OBU, according to the Singapore Land Transport Authority (LTA).
The agency stated it was on track to complete the installation exercise this year.
From February 15, 2026, vehicle owners who have been invited but have yet to install the OBU will receive a final reminder.
They will be given three months from the date of that final reminder to install the OBU for free.
After that period, they will need to pay S$35 (RM109) for motorcycles and S$70 (RM216) for all other vehicles for installation.
LTA also warned that unauthorised persons should not offer OBU-related services, including installation, repair, or modification.
“For serious cases of non-installation, tampering or unauthorised OBU services, the legislation provides for penalties of up to S$20,000 or imprisonment for a term not exceeding 12 months, or both,” it added.
