Singapore, Malaysia operators persist with cross-border transport despite clampdowns

A Singapore-registered limousine company, which had one of its seven-seater vehicles impounded in September, revealed that some of its multinational clients in Singapore have suspended cross-border contracts until they receive clarity on the legality of the service, according to The Straits Times.

The company, which declined to be named to avoid further business losses, continues to operate, citing the ongoing demand for cross-border transport despite the recent clampdowns on foreign-registered vehicles.

Senior Minister of State for Transport Sun Xueling said in a Facebook post on Sept. 30 that the enforcement against illegal cross-border and point-to-point hail trips "are continuing". Since July, the Land Transport Authority (LTA) has impounded 102 foreign-registered vehicles involved in illegal services, AsiaOne reported.

Taxis in Singapore. Photo from Facebook

In order to legally offer cross-border services between two countries, Malaysia-registered taxis must have both a Public Service Vehicle Licence and an ASEAN Public Service Vehicle Permit, according to Mothership. Those caught providing illegal ride-hailing services in Singapore face fines of up to S$3,000 (US$2,322), six months' imprisonment, or both.

The LTA reiterated that cross-border transport should only be conducted through licensed channels, such as the Cross-Border Taxi Scheme and designated coach services.

Despite these restrictions, some businesses and individuals persist in booking these services, citing the convenience of direct cross-border transport compared to the hassle of switching to local services after crossing the border.

The Singapore-based limousine company stated that cross-border transport remains a key segment of its business, with significant demand still driving operations, even after the vehicle impoundment.

Another operator, Limo2Go, previously dispatched up to 40 cross-border trips a month but ceased services in mid-September after one of its drivers was detained by Malaysian authorities. Erman Abdullah, Limo2Go’s head of operations, explained, "We initially planned to continue fulfilling our existing contracts despite the clampdowns, but after this incident, we don’t want to risk (losing our cars) any more," as quoted by The Straits Times.

Meanwhile, Malaysian transport companies continue to honor corporate contracts for cross-border travel. Saidina As Siddiq Travel & Tours, based in Johor, has adapted by hiring a Singapore-registered vehicle for the first leg of the journey to Johor Bahru, where a Malaysia-registered car completes the trip.

Muhammad Siddiq Kumyu, the firm’s director and driver, told The Straits Times that this workaround is intended to avoid trouble with the authorities. Despite the crackdown that resulted in two of his vehicles being seized by Singapore's LTA earlier in 2025 for operating without a license, the company continues to transport seafarers from Changi Airport to Johor Port.

Siddiq emphasized that his client insisted the existing contract be honored and requested that any changes to the arrangement be delayed until the contract expires in 2026.