Singapore ban on cross-border ride-hailing to Malaysia wins analyst support

Terence Fan, assistant professor of strategy and entrepreneurship at Singapore Management University, told Singapore Business Review that licensed taxis are "more than capable" of meeting demand, except during "certain festive seasons."

Daniel Chow, principal at consulting firm Arthur D. Little Southeast Asia, said opening the route to private-hire vehicles could erode taxi ridership, which is already below capacity. "The decision, while restrictive, is justified and strategically sound from a transport policy perspective," he said, noting that commuters also have cross-border buses and the Johor Bahru–Singapore Rapid Transit System, expected to begin operations in 2026.

Singapore’s Land Transport Authority (LTA) said in an Aug. 3 statement that while it is open to ideas for improving cross-border commuting, it has "no plans to fully liberalise cross-border point-to-point transport via ride-hail services," according to Channel News Asia.

Taxis in Singapore. Photo from Facebook

Under the Cross Border Taxi Scheme, up to 400 taxis from Singapore and Malaysia are licensed to pick up and drop off passengers at designated points: Larkin Sentral in Johor Bahru for Singapore taxis and Ban San Street Terminal in Singapore for Malaysian taxis.

Timothy Wong, a senior economics lecturer at the National University of Singapore, said that if Malaysian cars are allowed to operate in Singapore, "our safety and driver standards should still be upheld." Lowering these standards, he added, could undermine consumer confidence in ride-hailing services.

Fan noted that allowing private-hire operators to cross the border could further reduce Singapore’s taxi fleet, which dropped to 12,261 as of July from 13,343 a year earlier. Meanwhile, private-hire cars increased to 93,966 from 85,881. "It creates reasons for taxi drivers to feel that at least, some of their business is protected," he said.

Rosli Khan, managing director of MDS Transport Consultancy in Malaysia, told CNA that introducing cross-border ride-hailing apps would not be straightforward and would require bilateral agreements to harmonise regulations, which is "politically and administratively complex."

Honda, vice president of mobility at Frost & Sullivan, warned that liberalisation could allow Malaysian drivers to offer lower fares, resulting in "significant trip losses" for Singaporean drivers.

Licensed taxi drivers from both countries have also raised concerns about competition from touts who have long offered unauthorised cross-border ride-hailing services, with authorities taking no strict action against them. Jasmani Yasmi, 51, a Malaysian cross-border taxi driver, told The Straits Times that such operators, using luxury vehicles are believed to earn RM1,650–3,300 (US$390-780) daily.

CNA earlier reported that while demand is rising for more convenient cross-border travel, many commuters are avoiding licensed taxis because they lack door-to-door service. Unlicensed operators, in contrast, offer flexible pick-up and drop-off points.

The LTA said it is working with Malaysian authorities to improve the Cross Border Taxi Scheme, including enabling app-based bookings for licensed taxis and adding more boarding and drop-off points.

Honda suggested revising licensing rules and using platforms such as Grab or Gojek to improve transparency. Wong also proposed encouraging shared taxi rides. "If two people from a similar location in Singapore are heading to a similar location in Johor Bahru, you should incentivize them to share a taxi for that trip," he said.