Addressing Cost Concerns of Singapore Taxi and Private Hire Drivers Given New Cross-border Arrangements for Ride-hailing Services
Ministry of TransportSpeakers
Summary
This question concerns Ms Poh Li San’s inquiry regarding measures to address Singaporean taxi and private hire drivers’ concerns about competition from Malaysian taxis under new cross-border ride-hailing arrangements. Minister of State Jeffrey Siow stated that while operational costs cannot be equalised, the government ensures viability by restricting foreign taxis to designated pick-up points while allowing local taxis flexibility. He highlighted plans to increase pick-up locations to bolster return-trip demand and noted that the Land Transport Authority will strictly enforce regulations against illegal services. Additionally, licensed foreign taxis must install ERP2 on-board units and display specific identifiers like taxi toppers and tamper-proof vehicle plates for entry into Singapore. Finally, the Minister of State clarified that the issue of fuel subsidies is a matter for the Malaysian authorities to consider.
Transcript
22 Ms Poh Li San asked the Acting Minister for Transport in view of the new cross-border arrangements for ride-hailing and e-hailing vehicles between Singapore and Malaysia, what are the measures to address concerns by Singaporean taxi and private hire vehicle drivers regarding intensified competition from Malaysian taxis offering cheaper fares due to lower operating costs, and empty return trips.
Mr Jeffrey Siow: The enhancements to the Cross-Border Taxi Scheme aim to benefit travellers and facilitate fairer competition between drivers in both countries. While it is not possible to equalise the operational costs between Singaporean taxis and Malaysian taxis, we are working on measures to ensure that cross-border trips are more viable for our taxi drivers. For example, only local taxis are allowed to pick up passengers from any point in their home country, while foreign taxis can only pick up passengers from designated pick-up points. This will allow our taxi drivers to better meet demand for cross-border trips starting in Singapore. Over time, we plan to increase the number of ride-hail pick-up points to include more frequented locations. The improved convenience for travellers can bolster demand for the return trip to Singapore.
The Land Transport Authority will continue to enforce against illegal point-to-point transport services. Licensed cross-border taxis will be required to install Singapore's ERP2 on-board unit for entry into Singapore, and must also be clearly identifiable by livery, tamper-proof vehicle plate with predefined prefix and taxi topper.
As for fuel subsidies, that is a matter for the Malaysian authorities to consider.