Flexible drop-off rule for Singapore-Malaysia cross-border taxis welcomed by passengers, drivers, but raises pricing concerns

The transport ministries on both sides said last Friday they will allow licensed foreign taxis to drop off passengers anywhere in the other country, though no effective date has been set. The quota for licensed cross-border taxis will also increase from 200 to 500 per country.

Drivers in both countries have said the added convenience could help channel more demand to licensed cross-border taxis, which have long been undercut by illegal operators.

One driver, Kasinathan Annamalai, said the move is long awaited as many passengers want door-to-door service.

Flexible drop-offs will make cross-border taxis more appealing to customers on both sides and improve drivers’ income, the 67-year-old added.

Passengers have also welcomed the change, especially those who often bring luggage.

"With the flexible door-to-door drop-offs, it’s easier for us who usually carry a lot of items (from Malaysia)," 42-year-old Khairil Anuar Khairudin, who is residing in Singapore, told Channel News Asia.

Vehicles form a long queue to enter Woodlands checkpoint in Singapore on March 17, 2020 from across the causeway of the southern Malaysian state of Johor. Photo by AFP

Malaysia and Singapore are linked by the Johor-Singapore Causeway, a route used daily by many Malaysians commuting to work and Singaporeans looking for cheaper goods and services.

Currently, only a set number of licensed taxis from each country can provide cross-border trips, and they are limited to specific pickup and drop-off points.

The new rule will not change the restriction on pickup points for taxis outside their home country, with Singaporean taxis still limited to Larkin Sentral, a bus terminal in Johor Bahru across the Causeway, and Malaysian taxis to Ban San Street Terminal in Singapore.

Fares for the service are fixed, with trips from Ban San costing S$60 (US$46.3) while rides from most other Singapore locations to Larkin Sentral are priced at S$80. The rate from Larkin Sentral to Singapore is RM120 (US$29.2).

Some have raised concerns about how prices will be affected by the new rule, with drivers also worrying about more competition.

Farzilah Hashim, who frequents the service, is positive about the change but noted that higher prices could be an issue.

Walter Theseira, a transport economist at Singapore University of Social Sciences, told The Straits Times that Singapore-registered taxis might be reluctant to operate on the route if fare adjustments are not allowed during peak periods, such as weekends or festive seasons.

Ban Kum Cheong, a 54-year-old Singaporean taxi driver, said fares would likely need adjustment and that enforcement would be necessary to ensure drivers only collect passengers at designated locations.

Regulators would also need to consider how to maintain harmony between drivers on both sides, noting that they could end up competing for the same customers.

Theseira said: "Everyone knows a Singapore-based taxi cannot offer the service at the same price as a Malaysian taxi, so a Malaysian vehicle offering pickup-point flexibility in Singapore will generally outcompete the Singapore vehicle."

Regarding competition, the Singapore National Taxi Association, which has said it welcomes the enhancement to cross-border taxi services, said it would work closely with authorities to "ensure fair competition and a level playing field, protecting our drivers’ interests as these changes are rolled out."