Malaysia drivers divided over Singapore crackdown on illegal ride-hailing

Some Malaysian motorists say they feel unfairly targeted, while others recognize Singapore’s right to act against unlicensed operators. The Straits Times reported that the Land Transport Authority (LTA) has been detaining suspected vehicles for investigation.

One driver, identified only as Tan, said he was held for several hours at Tuas Checkpoint after sending friends home to Skudai in Johor, southern Malaysia. He worried about facing a fine of up to SGD3,000 (US$2,333) if found guilty of breaking Singapore’s laws.

Tan explained that he carpools with friends to share petrol and vehicle entry permit charges. "The LTA should go after those who do illegal business for a fee instead of nabbing anyone with a Malaysian-registered MPV."

Customers at ride-hailing pick-up point in Singapore. Photo from Facebook

Another driver, Chung, said his family MPV was seized after he was accused of providing an illegal ride-hailing service while traveling with friends into the city-state. "I do not do any door-to-door pick-up services, but just drop off and pick them up along the way," he said, adding that he charges no fee but accepts shared costs.

According to LTA, Malaysian-registered taxis must obtain a public service vehicle license and permit, while Singapore-registered taxis require approval from Malaysia’s Land Public Transport Agency. Foreign-registered private vehicles are not allowed to provide chauffeured cross-border services because they are not properly licensed or insured.

Despite these rules, unlicensed operators have continued competing with licensed drivers, Channel News Asia reported. LTA announced on Aug. 6 that it had increased patrols at Gardens by the Bay, Changi Airport, and land checkpoints, and had impounded 19 vehicles in recent weeks.

"Such services put passengers at risk, and harm the livelihoods of law-abiding licensed drivers," Singapore’s Senior Minister of State for Transport Sun Xueling said in a Facebook post.

Licensed operators have welcomed the move. A Singaporean limousine service operator, identified only as Ben, said his company now secures 25 to 30 additional trips daily, compared with just one or two every few days before enforcement began.

"These illegal operators from Malaysia usually undercut our prices by up to 40 per cent and that really hurts our business," he said, noting that licensed operators pay higher insurance premiums to cover passengers in both countries.

Associate Professor Walter Theseira, a transport economist at the Singapore University of Social Sciences, said customers prefer direct cross-border travel or full-day chauffeured trips, which illegal operators often offer.

Some passengers said they are reconsidering their travel choices. A 77-year-old Singaporean retiree, who identified himself only as Lee, told CNA he would likely switch to licensed taxis following the crackdown. "For us seniors, the fewer transfers the better," he said.

Ida Asiah, 57, a business owner who often takes licensed taxis to Malaysia, said the fixed drop-off point at Johor Bahru’s Larkin terminal is inconvenient, adding that she would prefer home pick-up as traveling with many items is difficult.