SINGAPORE/JOHOR BAHRU: It is 2pm on a weekday at Ban San Street Terminal in Singapore, where licensed taxi drivers are authorised to pick up passengers headed across the border to Johor Bahru.
A dozen or so people can be seen waiting idly in the sheltered terminal – but no one is there to board a taxi.
“There are only drivers here and no passengers,” said Mr Haniff Mahbob, 73, who has been a taxi driver for over 40 years. “That is how bad the situation has become.”
Over at Larkin Sentral Terminal in Johor Bahru, licensed Malaysian taxi drivers are also facing similar struggles. Business is somewhat better on weekends, though not by much.
“Sometimes, I would come at about 3am but would only get my first passenger at 7.30am,” 59-year-old Roslan Mahmod told CNA.
Since the reopening of borders after the COVID-19 pandemic, the drivers have faced intense competition from illegal cross-border operators who offer to pick up passengers from their doorstep and drop them off at their intended destinations.
“It's over already,” said Mr Haniff, who added that there used to be long queues of passengers before the pandemic.
“Will it ever come back to the same glorious (days) as before? I doubt so, unless something drastic is done about what is going on in the industry.”
Under the cross-border taxi scheme, up to 400 taxis from Singapore and Malaysia are licensed to pick up and drop off passengers only at a single designated point in the other’s country - Larkin Sentral in Johor Bahru for Singapore taxis and Ban San Street Terminal in Singapore for Malaysian taxis.
The scheme is underutilised, said Singapore's Land Transport Authority (LTA) on Sunday (Aug 3). There are approximately 300 licensed cross-border taxi drivers across Singapore and Malaysia in total.
To join the scheme, LTA requires Malaysia-registered taxis to obtain a public service vehicle licence and a permit, while Singapore-registered taxis will need a permit from Malaysia’s Land Public Transport Agency (Agensi Pengangkutan Awam Darat).
Foreign-registered private vehicles are not allowed to provide chauffeured cross-border services as they are not appropriately licensed or insured, LTA said.
Despite this, illegal operators have been eating into the earnings of the licensed taxi drivers, with some of these operators brazenly poaching passengers near the two pick-up points in Singapore and Johor Bahru.
In recent weeks, LTA has been carrying out patrols at Gardens by the Bay and Changi Airport, as well as working with the Immigration and Checkpoints Authority (ICA) at a land checkpoint to clamp down on these illegal services. A total of 19 drivers were caught, and all their vehicles were impounded, LTA said on Aug 6.
Meanwhile, LTA is mulling solutions such as the use of ride-hailing apps to book cross-border trips on licensed taxis, as well as to increase the number of boarding and alighting points in Singapore and Malaysia.
The authority also clarified that there are no plans to fully liberalise cross-border transport via ride-hailing services, in response to recent Malaysian media reports suggesting that Singapore intends to do so.
There is no shortage of travellers crossing the Singapore-Malaysia border daily, with a record number of more than 578,000 crossings made on Jun 20 this year, ICA said on Aug 5.
To this end, LTA said it is seeking to encourage the full take-up of the quota of licensed taxis, given the growing commuter demand for more convenient cross-border travel.
Of the nine taxi drivers that CNA spoke to, some said that commuters are not opting for licensed services when they want cross-border transport, and as such, there is no point in increasing the number of drivers available.
Due to the low demand for their services, licensed taxi drivers in both cities often have to wait long hours for a single fare.
When CNA visited Ban San Street Terminal on two consecutive weekdays, a few Malaysian taxi drivers who had been waiting for passengers on Tuesday were seen at the same spot on Wednesday. They said they slept in their taxis because there were no passengers to pick up.
Prior to Singapore's recent clamp down, unlicensed cross-border operators would frequently park near the terminal and lure customers away, said Mr Mohamed Yazid, 57, who started working as a taxi driver in Singapore in April.
He added that this situation is unfair to licensed taxi drivers, who are subject to regulatory oversight from authorities in both countries.
“Is it fair for me? Not fair. But they are stealing my passengers, my livelihood,” said Mr Mohamed.
Associate Professor Walter Theseira, a transport economist from the Singapore University of Social Sciences, said that these licensed cross-border taxis are not providing consumers the service they want.
Cross-border taxis are only allowed to pick up or drop off passengers at a designated point when outside of their home country. A one-way trip costs S$60 (US$47) per car, or S$15 per passenger.
However, they may pick up and drop off passengers anywhere within their home country – subject to additional fees. For example, a Singapore-registered taxi can only pick up and drop off passengers at Larkin Sentral in Malaysia, but can pick up passengers from anywhere in Singapore, apart from Seletar and Changi Airport, for S$80.
LTA said the reason for this arrangement is to ensure that foreign taxis do not ply the roads illegally to provide point-to-point services outside their home country.
Passengers headed to Singapore board a taxi from Larkin Sentral in Johor Bahru on Aug 6, 2025. (Photo: CNA/Zamzahuri Abas)
On this, Assoc Prof Theseira said: “What (passengers) clearly want is a service that picks them up and delivers them door-to-door from either side."
He also noted that beyond door-to-door service, many passengers seek a chauffeured service that can take them around the neighbouring country for the whole day – services that illegal operators often provide.
Mr Ibrahim Amat, 63, a Malaysian taxi driver with over 15 years of experience in cross-border taxi services, said the movement of taxis under the scheme is “very limited."
“Right now, unlicensed drivers are dominating the market because they can take passengers exactly where they want to go,” he told CNA.
On Wednesday, Senior Minister of State for Transport Sun Xueling said in a post on Facebook that LTA has been ramping up enforcement against illegal point-to-point services.
“Such services put passengers at risk, and harms the livelihoods of law-abiding licensed drivers,” she wrote.
Since 2022, LTA has caught 136 drivers for providing illegal cross-border services through foreign-registered vehicles.
Those found providing illegal ride-hailing services face up to S$3,000 fines and/or 6 months’ jail. Their vehicles may also be forfeited.
Currently, it costs S$60 per trip on a licensed cross-border taxi, regardless of how many passengers there are. Each taxi can accommodate no more than four adult passengers.
Passengers that CNA spoke to were not concerned about the S$60 price, as prices for door-to-door cross-border services offered by illegal operators can cost upwards of S$90, based on rates published online.
But the fixed nature of the pricing is an issue, said Assoc Prof Theseira, as it does not consider peak hours or congestion levels on the Causeway.
Assoc Prof Theseira said that this is a possible reason for the low take-up rate of licensed drivers.
“And that's another problem, because in Singapore, the fare levels have risen quite significantly in the last couple of years, making it even more of a losing proposition,” he said.
The fixed fare was raised in 2022 from S$48 per trip.
While illegal taxi services still cost more, they also feature flexible pick-up and drop-off points, and the cars can accommodate seven or eight passengers.
Licensed taxi drivers from Singapore told CNA that they incur costs that illegal operators do not, such as the season's parking fee at the terminal at around S$30 a month, a trip fee at Larkin Sentral of around RM15 (S$4.60), and the need to renew a bi-annual permit from Johor Bahru that costs S$50.
“You minus everything, what is left for us is peanuts lah,” said Singaporean taxi driver Mr Haniff.
He added that petrol prices and taxi rental have increased over the years, with rent for newer taxi models costing about S$120 per day – equivalent to the earnings from a round trip.
“How are you going to increase (the rate) today, when you don't even have passengers. When there's no more demand, you cannot even have a say,” he said.
Ida Asiah, 57, a business owner, with her groceries waiting for a taxi at Larkin Sentral to cross the Causeway on Aug 6, 2025. (Photo: CNA/Zamzahuri Abas)
Nevertheless, there are still those who prefer licensed cabs over the alternative for safety reasons.
“This is like my third time (in Singapore), but I'm still very new with the familiarity, so I'll probably just go with the legal one, as I don't want to get scammed, or kidnapped or anything like that,” said Ms Nurul Anis Shairah, a 28-year-old Malaysian who works in the petrochemical industry.
However, she pointed out that the walking distance from the terminal to nearest MRT station in Bugis was “quite challenging”, especially if she has heavy baggage.
Other passengers CNA spoke to at Ban San Terminal and Larkin Sentral also felt that more drop-off and pick-up points would make the scheme more appealing.
“I would prefer if these taxis could pick us up directly from our homes so I don’t have to go to Larkin. It's very difficult and inconvenient if we have a lot of items,” 57-year-old Ida Asiah, who regularly takes licensed taxis to travel to Malaysia, told CNA.
A Singaporean passenger who wanted to be known only
“For us seniors, the best is the minimal transfers, the better,” said the 77-year-old retiree, adding that the taxi service is inconvenient because of the fixed drop-off point at Larkin Sentral.
He said he usually pays S$400 for unlicensed services that pick passengers up from anywhere in Singapore and often comprise six-seater cars that can ferry his group around Johor Bahru for the entire day, and not just from point to point.
A Malaysian taxi association and several drivers told CNA that they have long advocated for more flexible alighting and boarding points to enhance passenger convenience and reduce reliance on unlicensed taxi services offering door-to-door options.
“We have long sought permission from LTA to be allowed to drop off passengers directly at any destination in Singapore … illegal taxi services are very widespread and they provide door-to-door services between Singapore and Johor, which puts licensed cross-border taxis at a disadvantage,” said Mohd Suhaimi Saidi, who manages Malaysia-registered cabs at Larkin Sentral.
Besides improving the flexibility of alighting and boarding points, Mr Suhaimi, who is also the president of the Singapore-Johor Taxi Association, said that integrating licensed taxis into ride-hailing platforms could further enhance the traditional taxi industry.
Currently, passengers have to either call taxi providers or book a taxi directly at the designated terminals.
“Today, passengers would prefer to simply call for a vehicle to pick them up from their homes … we need to keep up with the times,” he told CNA.
During a recent meeting with Singapore’s Acting Transport Minister Jeffrey Siow, Johor state’s chief minister Onn Hafiz Ghazi said that cross-border e-hailing services could serve as a “catalyst” for a more user-friendly, safe and competitive transport system, while strengthening integration between both countries’ public transport networks.
“This service not only offers more flexible, on-demand mobility options for users but also has the potential to ease congestion on major routes and create incomes for local drivers,” he was quoted as saying by Malaysian news outlet Malay Mail on Aug 3.
Liberalisation is distinct from allowing licensed cross-border taxis to use ride-hailing platforms, as it would allow any private hire vehicle on such platforms to ferry passengers across the Causeway.
This is not the first time the Johor state government has indicated interest in integrating ride-hailing services for cross-border travel.
Earlier in June, Mr Onn Hafiz had said that the state government is in talks with ride-hailing company Grab to revise the Cross-Border Travel Agreement, as part of broader efforts to enhance Johor’s tourism and transportation sectors ahead of Visit Johor 2026.
Visit Johor 2026 is a state-led campaign aimed at promoting Johor as a key travel destination, with plans to enhance connectivity, infrastructure, and visitor experience.
But taxi drivers from both sides are wary of the implications of liberalising ride-hailing and extending cross-border travels to private-hire cars.
Roslan Mahmod, 59, a cross-border taxi driver, speaks to CNA during an interview at Larkin Sentral, Johor Bahru, on Aug 6, 2025. (Photo: CNA/Zamzahuri Abas)
Mohd Zaid Muhammad, 58, a cross-border taxi driver, speaks to CNA during an interview at Larkin Sentral, Johor Bahru, on Aug 6, 2025. (Photo: CNA/Zamzahuri Abas)
Mr Roslan Mahmod, 59, who has been ferrying passengers legally
“It’s quite difficult for us, there are a lot of taxis but not many passengers,” he told CNA at Larkin Sentral.
Agreeing, another fellow Malaysian licensed taxi driver, Mr Zaid Muhammad said that such a move could flood the market with more drivers without an increase in commuter demand.
“This could lead to lower prices,” he said. “It is better that licensed taxis are prioritised on ride-hailing platforms,” he added, referring to LTA’s recent statement that it is considering the use of ride-hailing apps to book cross-border trips on licensed taxis.
Dr Rosli Khan, managing director of MDS Transport Consultancy based in Malaysia, said that introducing ride-hailing apps to operate cross-border is not straightforward and would require bilateral agreements that harmonise these regulatory areas, which is “politically and administratively complex”.
“For example, if a Malaysian driver commits a fare offence in Singapore, or vice versa, which country's authorities will take action? The current legal framework is not designed for such shared enforcement,” he said.
Beyond the solutions raised by the authorities on both sides, taxi drivers CNA spoke to also had various ideas on how to revitalise the trade.
One of them is to allow taxis to drive on the bus lane at the Causeway so they will not be held back by peak hour congestion, Singapore taxi driver Mr Mohamed said.
“Because taxis are not many. So I think when passengers see it (as) more convenient, then maybe there is a demand,” he said.
He added that authorities could consider imposing fines on passengers who take illegal taxis to raise awareness. Presently, the drivers of these illegal taxis are subject to the fine of up to S$3,000, not the passengers.
Experts agreed that more awareness is needed.
Assistant Professor of strategy and entrepreneurship Terence Fan from Singapore Management University pointed out that a quick search on Google for cross-border taxi services will present many illegal options that may not seem suspicious to an average consumer.
“So that's why I think a lot of people may inadvertently go for these services which are not meant to be legal in the first place,” he said, adding that it is “hard to blame” consumers for the lack of available information.
Apart from promoting legal cross-border taxi services, the public should also be more aware of the dangers of taking illegal vehicles, he added.
“If you're in an illegal vehicle, you know, what happens if you're in an accident is that the relevant insurance policy may not cover the travellers,” said Asst Prof Fan.
Dr Rosli of Malaysia’s MDS Transport Consultancy also said that a joint regulatory body should be formed to create standardised licensing, fare structures and enforcement protocols for cross-border transport.
In any case, all changes will require agreement from both the Singapore and Malaysian governments, as the cross-border taxi scheme is a reciprocal arrangement.
Ultimately, Assoc Prof Theseira pointed out that the core problems affecting the cross-border taxi scheme must be addressed first.
“You have to fix the fundamentals, which is allowing more flexible pick-up and drop-offs and also allowing more flexible fare systems,” he said.
If nothing is done, cross-border taxi services will continue to die out, he said.
"It is already dying, simply because... neither the prices nor the service that is being offered is what people want."
Additional reporting by Zamzahuri Abas
Continue reading...
A dozen or so people can be seen waiting idly in the sheltered terminal – but no one is there to board a taxi.
“There are only drivers here and no passengers,” said Mr Haniff Mahbob, 73, who has been a taxi driver for over 40 years. “That is how bad the situation has become.”
Over at Larkin Sentral Terminal in Johor Bahru, licensed Malaysian taxi drivers are also facing similar struggles. Business is somewhat better on weekends, though not by much.
“Sometimes, I would come at about 3am but would only get my first passenger at 7.30am,” 59-year-old Roslan Mahmod told CNA.
Since the reopening of borders after the COVID-19 pandemic, the drivers have faced intense competition from illegal cross-border operators who offer to pick up passengers from their doorstep and drop them off at their intended destinations.
“It's over already,” said Mr Haniff, who added that there used to be long queues of passengers before the pandemic.
“Will it ever come back to the same glorious (days) as before? I doubt so, unless something drastic is done about what is going on in the industry.”
Under the cross-border taxi scheme, up to 400 taxis from Singapore and Malaysia are licensed to pick up and drop off passengers only at a single designated point in the other’s country - Larkin Sentral in Johor Bahru for Singapore taxis and Ban San Street Terminal in Singapore for Malaysian taxis.
The scheme is underutilised, said Singapore's Land Transport Authority (LTA) on Sunday (Aug 3). There are approximately 300 licensed cross-border taxi drivers across Singapore and Malaysia in total.
To join the scheme, LTA requires Malaysia-registered taxis to obtain a public service vehicle licence and a permit, while Singapore-registered taxis will need a permit from Malaysia’s Land Public Transport Agency (Agensi Pengangkutan Awam Darat).
Foreign-registered private vehicles are not allowed to provide chauffeured cross-border services as they are not appropriately licensed or insured, LTA said.
Despite this, illegal operators have been eating into the earnings of the licensed taxi drivers, with some of these operators brazenly poaching passengers near the two pick-up points in Singapore and Johor Bahru.
In recent weeks, LTA has been carrying out patrols at Gardens by the Bay and Changi Airport, as well as working with the Immigration and Checkpoints Authority (ICA) at a land checkpoint to clamp down on these illegal services. A total of 19 drivers were caught, and all their vehicles were impounded, LTA said on Aug 6.
Meanwhile, LTA is mulling solutions such as the use of ride-hailing apps to book cross-border trips on licensed taxis, as well as to increase the number of boarding and alighting points in Singapore and Malaysia.
The authority also clarified that there are no plans to fully liberalise cross-border transport via ride-hailing services, in response to recent Malaysian media reports suggesting that Singapore intends to do so.
LOW DEMAND FOR LICENSED CABS
There is no shortage of travellers crossing the Singapore-Malaysia border daily, with a record number of more than 578,000 crossings made on Jun 20 this year, ICA said on Aug 5.
To this end, LTA said it is seeking to encourage the full take-up of the quota of licensed taxis, given the growing commuter demand for more convenient cross-border travel.
Of the nine taxi drivers that CNA spoke to, some said that commuters are not opting for licensed services when they want cross-border transport, and as such, there is no point in increasing the number of drivers available.
Due to the low demand for their services, licensed taxi drivers in both cities often have to wait long hours for a single fare.
When CNA visited Ban San Street Terminal on two consecutive weekdays, a few Malaysian taxi drivers who had been waiting for passengers on Tuesday were seen at the same spot on Wednesday. They said they slept in their taxis because there were no passengers to pick up.
Prior to Singapore's recent clamp down, unlicensed cross-border operators would frequently park near the terminal and lure customers away, said Mr Mohamed Yazid, 57, who started working as a taxi driver in Singapore in April.
He added that this situation is unfair to licensed taxi drivers, who are subject to regulatory oversight from authorities in both countries.
“Is it fair for me? Not fair. But they are stealing my passengers, my livelihood,” said Mr Mohamed.
Associate Professor Walter Theseira, a transport economist from the Singapore University of Social Sciences, said that these licensed cross-border taxis are not providing consumers the service they want.
Cross-border taxis are only allowed to pick up or drop off passengers at a designated point when outside of their home country. A one-way trip costs S$60 (US$47) per car, or S$15 per passenger.
However, they may pick up and drop off passengers anywhere within their home country – subject to additional fees. For example, a Singapore-registered taxi can only pick up and drop off passengers at Larkin Sentral in Malaysia, but can pick up passengers from anywhere in Singapore, apart from Seletar and Changi Airport, for S$80.
LTA said the reason for this arrangement is to ensure that foreign taxis do not ply the roads illegally to provide point-to-point services outside their home country.
Passengers headed to Singapore board a taxi from Larkin Sentral in Johor Bahru on Aug 6, 2025. (Photo: CNA/Zamzahuri Abas)
On this, Assoc Prof Theseira said: “What (passengers) clearly want is a service that picks them up and delivers them door-to-door from either side."
He also noted that beyond door-to-door service, many passengers seek a chauffeured service that can take them around the neighbouring country for the whole day – services that illegal operators often provide.
Mr Ibrahim Amat, 63, a Malaysian taxi driver with over 15 years of experience in cross-border taxi services, said the movement of taxis under the scheme is “very limited."
“Right now, unlicensed drivers are dominating the market because they can take passengers exactly where they want to go,” he told CNA.
On Wednesday, Senior Minister of State for Transport Sun Xueling said in a post on Facebook that LTA has been ramping up enforcement against illegal point-to-point services.
“Such services put passengers at risk, and harms the livelihoods of law-abiding licensed drivers,” she wrote.
Since 2022, LTA has caught 136 drivers for providing illegal cross-border services through foreign-registered vehicles.
Those found providing illegal ride-hailing services face up to S$3,000 fines and/or 6 months’ jail. Their vehicles may also be forfeited.
MORE FLEXIBLE RATES
Currently, it costs S$60 per trip on a licensed cross-border taxi, regardless of how many passengers there are. Each taxi can accommodate no more than four adult passengers.
Passengers that CNA spoke to were not concerned about the S$60 price, as prices for door-to-door cross-border services offered by illegal operators can cost upwards of S$90, based on rates published online.
But the fixed nature of the pricing is an issue, said Assoc Prof Theseira, as it does not consider peak hours or congestion levels on the Causeway.
Assoc Prof Theseira said that this is a possible reason for the low take-up rate of licensed drivers.
“And that's another problem, because in Singapore, the fare levels have risen quite significantly in the last couple of years, making it even more of a losing proposition,” he said.
The fixed fare was raised in 2022 from S$48 per trip.
While illegal taxi services still cost more, they also feature flexible pick-up and drop-off points, and the cars can accommodate seven or eight passengers.
Licensed taxi drivers from Singapore told CNA that they incur costs that illegal operators do not, such as the season's parking fee at the terminal at around S$30 a month, a trip fee at Larkin Sentral of around RM15 (S$4.60), and the need to renew a bi-annual permit from Johor Bahru that costs S$50.
“You minus everything, what is left for us is peanuts lah,” said Singaporean taxi driver Mr Haniff.
He added that petrol prices and taxi rental have increased over the years, with rent for newer taxi models costing about S$120 per day – equivalent to the earnings from a round trip.
“How are you going to increase (the rate) today, when you don't even have passengers. When there's no more demand, you cannot even have a say,” he said.
Ida Asiah, 57, a business owner, with her groceries waiting for a taxi at Larkin Sentral to cross the Causeway on Aug 6, 2025. (Photo: CNA/Zamzahuri Abas)
MORE PICK-UP AND DROP-OFF POINTS
Nevertheless, there are still those who prefer licensed cabs over the alternative for safety reasons.
“This is like my third time (in Singapore), but I'm still very new with the familiarity, so I'll probably just go with the legal one, as I don't want to get scammed, or kidnapped or anything like that,” said Ms Nurul Anis Shairah, a 28-year-old Malaysian who works in the petrochemical industry.
However, she pointed out that the walking distance from the terminal to nearest MRT station in Bugis was “quite challenging”, especially if she has heavy baggage.
Other passengers CNA spoke to at Ban San Terminal and Larkin Sentral also felt that more drop-off and pick-up points would make the scheme more appealing.
“I would prefer if these taxis could pick us up directly from our homes so I don’t have to go to Larkin. It's very difficult and inconvenient if we have a lot of items,” 57-year-old Ida Asiah, who regularly takes licensed taxis to travel to Malaysia, told CNA.
A Singaporean passenger who wanted to be known only
“For us seniors, the best is the minimal transfers, the better,” said the 77-year-old retiree, adding that the taxi service is inconvenient because of the fixed drop-off point at Larkin Sentral.
He said he usually pays S$400 for unlicensed services that pick passengers up from anywhere in Singapore and often comprise six-seater cars that can ferry his group around Johor Bahru for the entire day, and not just from point to point.
A Malaysian taxi association and several drivers told CNA that they have long advocated for more flexible alighting and boarding points to enhance passenger convenience and reduce reliance on unlicensed taxi services offering door-to-door options.
“We have long sought permission from LTA to be allowed to drop off passengers directly at any destination in Singapore … illegal taxi services are very widespread and they provide door-to-door services between Singapore and Johor, which puts licensed cross-border taxis at a disadvantage,” said Mohd Suhaimi Saidi, who manages Malaysia-registered cabs at Larkin Sentral.
Besides improving the flexibility of alighting and boarding points, Mr Suhaimi, who is also the president of the Singapore-Johor Taxi Association, said that integrating licensed taxis into ride-hailing platforms could further enhance the traditional taxi industry.
Currently, passengers have to either call taxi providers or book a taxi directly at the designated terminals.
“Today, passengers would prefer to simply call for a vehicle to pick them up from their homes … we need to keep up with the times,” he told CNA.
LIBERALISING RIDE-HAILING?
During a recent meeting with Singapore’s Acting Transport Minister Jeffrey Siow, Johor state’s chief minister Onn Hafiz Ghazi said that cross-border e-hailing services could serve as a “catalyst” for a more user-friendly, safe and competitive transport system, while strengthening integration between both countries’ public transport networks.
“This service not only offers more flexible, on-demand mobility options for users but also has the potential to ease congestion on major routes and create incomes for local drivers,” he was quoted as saying by Malaysian news outlet Malay Mail on Aug 3.
Liberalisation is distinct from allowing licensed cross-border taxis to use ride-hailing platforms, as it would allow any private hire vehicle on such platforms to ferry passengers across the Causeway.
This is not the first time the Johor state government has indicated interest in integrating ride-hailing services for cross-border travel.
Earlier in June, Mr Onn Hafiz had said that the state government is in talks with ride-hailing company Grab to revise the Cross-Border Travel Agreement, as part of broader efforts to enhance Johor’s tourism and transportation sectors ahead of Visit Johor 2026.
Visit Johor 2026 is a state-led campaign aimed at promoting Johor as a key travel destination, with plans to enhance connectivity, infrastructure, and visitor experience.
But taxi drivers from both sides are wary of the implications of liberalising ride-hailing and extending cross-border travels to private-hire cars.
Roslan Mahmod, 59, a cross-border taxi driver, speaks to CNA during an interview at Larkin Sentral, Johor Bahru, on Aug 6, 2025. (Photo: CNA/Zamzahuri Abas)
Mohd Zaid Muhammad, 58, a cross-border taxi driver, speaks to CNA during an interview at Larkin Sentral, Johor Bahru, on Aug 6, 2025. (Photo: CNA/Zamzahuri Abas)
Mr Roslan Mahmod, 59, who has been ferrying passengers legally
“It’s quite difficult for us, there are a lot of taxis but not many passengers,” he told CNA at Larkin Sentral.
Agreeing, another fellow Malaysian licensed taxi driver, Mr Zaid Muhammad said that such a move could flood the market with more drivers without an increase in commuter demand.
“This could lead to lower prices,” he said. “It is better that licensed taxis are prioritised on ride-hailing platforms,” he added, referring to LTA’s recent statement that it is considering the use of ride-hailing apps to book cross-border trips on licensed taxis.
Dr Rosli Khan, managing director of MDS Transport Consultancy based in Malaysia, said that introducing ride-hailing apps to operate cross-border is not straightforward and would require bilateral agreements that harmonise these regulatory areas, which is “politically and administratively complex”.
“For example, if a Malaysian driver commits a fare offence in Singapore, or vice versa, which country's authorities will take action? The current legal framework is not designed for such shared enforcement,” he said.
WHAT ELSE CAN BE DONE?
Beyond the solutions raised by the authorities on both sides, taxi drivers CNA spoke to also had various ideas on how to revitalise the trade.
One of them is to allow taxis to drive on the bus lane at the Causeway so they will not be held back by peak hour congestion, Singapore taxi driver Mr Mohamed said.
“Because taxis are not many. So I think when passengers see it (as) more convenient, then maybe there is a demand,” he said.
He added that authorities could consider imposing fines on passengers who take illegal taxis to raise awareness. Presently, the drivers of these illegal taxis are subject to the fine of up to S$3,000, not the passengers.
Experts agreed that more awareness is needed.
Assistant Professor of strategy and entrepreneurship Terence Fan from Singapore Management University pointed out that a quick search on Google for cross-border taxi services will present many illegal options that may not seem suspicious to an average consumer.
“So that's why I think a lot of people may inadvertently go for these services which are not meant to be legal in the first place,” he said, adding that it is “hard to blame” consumers for the lack of available information.
Apart from promoting legal cross-border taxi services, the public should also be more aware of the dangers of taking illegal vehicles, he added.
“If you're in an illegal vehicle, you know, what happens if you're in an accident is that the relevant insurance policy may not cover the travellers,” said Asst Prof Fan.
Dr Rosli of Malaysia’s MDS Transport Consultancy also said that a joint regulatory body should be formed to create standardised licensing, fare structures and enforcement protocols for cross-border transport.
In any case, all changes will require agreement from both the Singapore and Malaysian governments, as the cross-border taxi scheme is a reciprocal arrangement.
Ultimately, Assoc Prof Theseira pointed out that the core problems affecting the cross-border taxi scheme must be addressed first.
“You have to fix the fundamentals, which is allowing more flexible pick-up and drop-offs and also allowing more flexible fare systems,” he said.
If nothing is done, cross-border taxi services will continue to die out, he said.
"It is already dying, simply because... neither the prices nor the service that is being offered is what people want."
Additional reporting by Zamzahuri Abas
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