SINGAPORE: Singapore is set to switch fully to the ERP2 system from Jan 1, 2027, with a Bill being debated in parliament on Tuesday (Feb 3) to make on-board units mandatory for all Singapore-registered vehicles.
“This is because ERP2 uses satellite technology, rather than gantries, to determine the vehicle’s location for charging,” said Acting Transport Minister Jeffrey Siow in his opening speech on the second reading of the Land Transport and Related Matters Bill.
The debate on the Bill was adjourned to Wednesday.
The Land Transport Authority (LTA) said in a statement that from Feb 15, vehicle owners who have been invited to install the OBU but have yet to do so will receive a final reminder.
They will be given the next three months from the date of issuance of the final reminder to install the OBU for free.
After this, they will need to pay for the OBU installation – S$35 for motorcycles and S$70 for all other vehicles.
Foreign-registered private vehicles are encouraged to install OBUs for usage-based charging, but for occasional visitors who prefer not to do so, they can pay a daily flat fee, said Mr Siow.
“Malaysian taxis, however, will be required to install the OBU, as this is necessary for us to track and enforce against such vehicles, if needed, within Singapore,” said Mr Siow.
Certain vehicles, such as vintage and classic vehicles, will also be exempted from the installation of the OBU, said LTA.
From Jan 1, 2027, those without OBUs will pay flat fees of S$3 (US$2.36) for motorcycles and S$10 for all other vehicles for every ERP operational day it travels on the roads.
Under the proposed law, it would be an offence to tamper with or modify OBUs without authorisation, and provide or advertise services on the OBU without authorisation, said Mr Siow.
For serious cases of deliberate non-compliance or misuse, the legislation provides for penalties of up to S$20,000, up to two years’ jail, or both.
Members of Parliament (MPs) on both sides of the House spoke about the proposed regulations during the debate on the Bill on Tuesday.
Transport Government Parliamentary Committee chair MP Tin Pei Ling (PAP-Marine Parade-Braddell Heights) questioned what measures will be undertaken to ensure the OBU technology does not become obsolete.
MP Dennis Tan (WP-Hougang) raised concerns about the privacy of vehicle movement data collected by the OBU.
MP Choo Pei Ling (PAP- Chua Chu Kang) said while ERP2 represents a fairer model, she asked how lower-income families who rely on private-hire vehicles for essential transport would be protected from “disproportionate burdens”.
Ms Tin also questioned whether private hire drivers and delivery riders could bear higher costs under the future model.
The debate continues on Wednesday.
In his opening speech, Mr Siow said that compared with ERP1, ERP2 will be “more precise and finer in targeting road congestion”.
It also removes the need for expensive and large physical gantries.
“We can also spread out ERP charges in smaller amounts across several locations as opposed to just one location. This will be fairer,” he said.
He also reassured motorists that the government would be “judicious” in adding new charging points, doing so only when needed at persistent congestion hotspots.
About 93 per cent of vehicle owners have installed the OBU so far.
"My intent is to ensure a smooth transition, so that the ERP2 experience will be similar, as similar as possible to the ERP1 experience as we switch over," said the acting transport minister.
"This means that we will not be introducing distance-based charging in the immediate term. Distance-based charging is something that we will continue to study and explore after motorists have gotten more used to the new system and the situation is more stable."
After almost three decades, the current ERP system is reaching the end of its life.
“Replacing obsolete components and infrastructure had become unsustainably challenging and expensive,” he said.
The implementation of ERP2 took longer than initially planned, after it was first decided in 2013 to move towards the new system that uses Global Navigation Satellite System (GNSS) technology, he said.
“Since we first began the OBU installation exercise in 2024, LTA has received much feedback. LTA has taken the feedback on board, and this has helped to improve the user experience,” said Mr Siow.
For instance, vehicle owners can choose not to have a display screen, which would be more similar to the original ERP system experience.
The Bill also calls for settlement processes to be simplified and to decriminalise missed ERP charges, which are currently an offence under the Road Traffic Act.
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“This is because ERP2 uses satellite technology, rather than gantries, to determine the vehicle’s location for charging,” said Acting Transport Minister Jeffrey Siow in his opening speech on the second reading of the Land Transport and Related Matters Bill.
The debate on the Bill was adjourned to Wednesday.
The Land Transport Authority (LTA) said in a statement that from Feb 15, vehicle owners who have been invited to install the OBU but have yet to do so will receive a final reminder.
They will be given the next three months from the date of issuance of the final reminder to install the OBU for free.
After this, they will need to pay for the OBU installation – S$35 for motorcycles and S$70 for all other vehicles.
Foreign-registered private vehicles are encouraged to install OBUs for usage-based charging, but for occasional visitors who prefer not to do so, they can pay a daily flat fee, said Mr Siow.
“Malaysian taxis, however, will be required to install the OBU, as this is necessary for us to track and enforce against such vehicles, if needed, within Singapore,” said Mr Siow.
Certain vehicles, such as vintage and classic vehicles, will also be exempted from the installation of the OBU, said LTA.
From Jan 1, 2027, those without OBUs will pay flat fees of S$3 (US$2.36) for motorcycles and S$10 for all other vehicles for every ERP operational day it travels on the roads.
Under the proposed law, it would be an offence to tamper with or modify OBUs without authorisation, and provide or advertise services on the OBU without authorisation, said Mr Siow.
For serious cases of deliberate non-compliance or misuse, the legislation provides for penalties of up to S$20,000, up to two years’ jail, or both.
Members of Parliament (MPs) on both sides of the House spoke about the proposed regulations during the debate on the Bill on Tuesday.
Transport Government Parliamentary Committee chair MP Tin Pei Ling (PAP-Marine Parade-Braddell Heights) questioned what measures will be undertaken to ensure the OBU technology does not become obsolete.
MP Dennis Tan (WP-Hougang) raised concerns about the privacy of vehicle movement data collected by the OBU.
MP Choo Pei Ling (PAP- Chua Chu Kang) said while ERP2 represents a fairer model, she asked how lower-income families who rely on private-hire vehicles for essential transport would be protected from “disproportionate burdens”.
Ms Tin also questioned whether private hire drivers and delivery riders could bear higher costs under the future model.
The debate continues on Wednesday.
WHY SWITCH?
In his opening speech, Mr Siow said that compared with ERP1, ERP2 will be “more precise and finer in targeting road congestion”.
It also removes the need for expensive and large physical gantries.
“We can also spread out ERP charges in smaller amounts across several locations as opposed to just one location. This will be fairer,” he said.
He also reassured motorists that the government would be “judicious” in adding new charging points, doing so only when needed at persistent congestion hotspots.
About 93 per cent of vehicle owners have installed the OBU so far.
"My intent is to ensure a smooth transition, so that the ERP2 experience will be similar, as similar as possible to the ERP1 experience as we switch over," said the acting transport minister.
"This means that we will not be introducing distance-based charging in the immediate term. Distance-based charging is something that we will continue to study and explore after motorists have gotten more used to the new system and the situation is more stable."
Related:
After almost three decades, the current ERP system is reaching the end of its life.
“Replacing obsolete components and infrastructure had become unsustainably challenging and expensive,” he said.
The implementation of ERP2 took longer than initially planned, after it was first decided in 2013 to move towards the new system that uses Global Navigation Satellite System (GNSS) technology, he said.
“Since we first began the OBU installation exercise in 2024, LTA has received much feedback. LTA has taken the feedback on board, and this has helped to improve the user experience,” said Mr Siow.
For instance, vehicle owners can choose not to have a display screen, which would be more similar to the original ERP system experience.
The Bill also calls for settlement processes to be simplified and to decriminalise missed ERP charges, which are currently an offence under the Road Traffic Act.
Continue reading...