Singapore ride-hailing demand surges as LTA cracks down on illegal operators in Johor
Illegal ride-hailing services have been exposed for offering cross-border and point-to-point transport between Malaysia and Singapore, even allowing tourists to “charter” vehicles.
These activities are disrupting the livelihoods of Singapore’s legitimate taxi, ride-hailing, and private hire drivers, who are facing increased competition.
On 11 Aug, Shin Min Daily News reported that a Singapore private hire driver had his vehicle impounded in Johor for transporting passengers to Legoland, leaving him unable to work while still having to pay a daily rental fee of S$190.
Source: Shin Min Daily News
Many drivers have expressed their frustrations with Malaysia’s illegal ride-hailing services, which not only offer cross-border rides but also pick up passengers in Singapore.
After dropping off passengers from Johor Bahru (JB) in Singapore, these operators are reportedly picking up new passengers at local tourist spots, offering illegal point-to-point services.
Some of these illegal operators also cater to tourists, offering cheaper rides to JB, undercutting local private hire vehicles.
One taxi driver, who wished to remain anonymous, revealed that they had seen passengers taking “chartered rides” near Changi Airport.
“I once picked up passengers from Changi Airport who switched to a Malaysian-registered car at Expo, probably heading to JB,” the driver said.
The driver also observed that passengers often switch to Malaysian vehicles near concert or football venues, likely to avoid detection by authorities.
LTA’s crackdown boosts local business
Local limousine driver Mr Chen confirmed that these illegal operators have been encroaching on the market, causing frustration among local drivers.
However, he noted that the recent crackdown by the Land Transport Authority (LTA) has had a positive impact on local businesses, with bookings increasing.
“My business has grown by over 30% in the past few days,” he said. “Previously, some Malaysian drivers would pass jobs to Singapore drivers to earn extra money, but now no one dares to take those jobs.”
Several local taxi drivers also reported a rise in passenger numbers following the decline of illegal operators from Malaysia.
Source: Shin Min Daily News
Another driver, 72-year-old Mr Leong, said that while illegal operators are still seen on weekends, their numbers have significantly decreased.
Meanwhile, Mr Xie and Mr Chen, both in their 50s, mentioned that their passenger numbers have increased by around 10% recently.
71-year-old Mr Chua, who reported a 20% rise in his business, called for continued enforcement efforts, stressing that while illegal operators may offer cheaper fares, they pose a safety risk.
136 drivers caught by LTA since 2022
LTA told MS News that 136 drivers have been caught using foreign-registered vehicles for illegal cross-border transport since 2022.
All involved vehicles were seized, and convicted drivers face fines of up to S$2,600, along with vehicle confiscation.
The agency is also collaborating with Malaysian authorities, the National Taxi Association (NTA), and the National Private Hire Vehicles Association (NPHVA) to review the Cross-Border Taxis Scheme (CBTS). Proposed changes include:
- Adding more designated pick-up and drop-off points on both sides of the border
- Increasing the quota for licensed taxis from each country
- Allowing a broader range of vehicle types
- Enabling ride-hailing apps to connect commuters with licensed cross-border taxis
Meanwhile, LTA advises passengers to use licensed taxis for cross-border travel while the crackdown on illegal services continues, ensuring both safety and support for legal drivers.
Source: Shin Min Daily News
Local associations take action against illegal operators
Yeo Wan Ling, advisor to the NTA, NPHVA, and the National Delivery Champions Association (NDCA), confirmed that these associations are aware of foreign vehicles providing illegal services in Singapore.
“We will continue to work closely with the authorities, and represent our drivers’ needs and concerns throughout this review process, so as to ensure their welfare and job security remain central,” Ms Yeo said in a statement on Facebook.
As Assistant Secretary-General of the National Trades Union Congress (NTUC), Ms Yeo also emphasised that this issue would be a priority for the Tripartite Workgroup on Representation for Platform Workers, a group previously called for by NTUC.
The associations are advocating for reforms to the CBTS to better protect local drivers and meet evolving commuter needs.
“We look forward to a comprehensive revamp that prioritises our Singapore drivers,” Ms Yeo concluded.
The appeal of illegal ride-hailing services
Mr Wang, a 50-year-old engineer, shared that he had previously used illegal ride-hailing services to travel from Singapore to Malaysia.
“I found the service convenient, with no need to carry luggage up and down, and I could leave my purchased items in the car. It was very convenient,” he explained.
A ride from his home to Mid Valley Southkey in JB typically cost around S$90 to S$100.
“They also offer a 10-hour service that takes you from your home to anywhere in Malaysia and back, costing around S$300 to S$400,” Mr Wang added.
However, with authorities ramping up enforcement, Mr Wang said he no longer dares to use these illegal services.
Have news you must share? Get in touch with us via email at news@mustsharenews.com.
Featured image adapted from Shin Min Daily News.
