Greetings in Japanese, 'konnichiwa', offered at The Five, a restaurant located in Damansara Heights. This eatery, hailing from Japan, specializes in gluten-free udon dishes and a plant-based menu.
In the bustling region between Singapore and Malaysia, the cross-border taxi situation has been a subject of concern for both licensed drivers and passengers. The current system, operated under the Cross Border Taxi Scheme (CBTS), limits taxis to picking up and dropping off passengers at one designated point in each country. This restriction severely limits convenience, contributing to underutilization of the scheme and making licensed drivers uncompetitive compared to illegal operators offering door-to-door service.
The situation at Larkin Sentral in Johor Bahru mirrors that in Singapore, with no passengers for licensed cross-border taxi drivers. The rigidity of the current system is a significant deterrent for passengers seeking full-day, door-to-door convenience, according to experts.
Singapore’s Land Transport Authority (LTA) has stepped up enforcement against illegal services, impounding 19 vehicles recently and continuing patrols at key locations. However, calls are growing for both countries to allow licensed cross-border taxis to use ride-hailing platforms and expand their operating points.
Associate Professor Walter Theseira from the Singapore University of Social Sciences stated that passengers prefer a service that picks them up and delivers them door-to-door. He suggests that increasing the number of designated pickup/drop-off points and allowing licensed cross-border taxis to be booked via ride-hailing apps could help meet modern travel expectations.
Licensed taxi operators face challenges from illegal services that circumvent licensing and insurance rules by providing flexible, point-to-point cross-border rides, often at lower costs, undermining licensed drivers’ livelihood. Enhanced enforcement measures targeted at these illegal operators are necessary alongside policy reforms.
In Kuala Lumpur, licensed cross-border taxi drivers in Singapore and Johor Bahru are struggling to survive due to illegal operators offering door-to-door services. Some passengers prefer licensed cabs for safety, but many are deterred by the fixed routes, inconvenient terminals, and rigid fare structures.
Johor Menteri Besar Datuk Seri Onn Hafiz Ghazi proposed liberalising ride-hailing across the border as part of broader plans to boost tourism under Visit Johor 2026. This proposal echoes the sentiments of many who believe that without flexibility on pricing and routes, licensed cross-border taxis may continue to decline.
Veteran Singaporean driver Haniff Mahbob described the trade post-pandemic as having only drivers and no passengers. He, like many others, hopes for a solution that balances the need for regulatory safeguards with the demands of modern commuters.
In summary, to improve the cross-border taxi situation:
- Increase the number of designated pickup/drop-off points on both sides to improve convenience and accessibility.
- Allow licensed cross-border taxis to be booked via ride-hailing apps, which users currently prefer.
- Maintain licensing and insurance safeguards to ensure passenger safety and regulatory compliance.
- Strengthen enforcement against illegal cross-border operators to protect licensed drivers and ensure fair competition.
These measures offer a balanced approach to boosting competition and addressing modern commuter expectations without full liberalization, which Singapore currently resists. By implementing these changes, both countries can work towards a more efficient and competitive cross-border taxi system that benefits both passengers and drivers.
[1] Straits Times, 2022. [Link to the article] [2] Channel NewsAsia, 2022. [Link to the article] [3] Malay Mail, 2022. [Link to the article] [4] Bernama, 2022. [Link to the article] [5] The Star, 2022. [Link to the article]
- The current system in Malaysia, where cross-border taxis are limited to picking up and dropping off passengers at one designated point in each country, is contributing to underutilization and making licensed drivers uncompetitive compared to illegal operators.
- Advocates for policy reform suggest increasing the number of designated pickup/drop-off points for licensed cross-border taxis and allowing them to be booked via ride-hailing apps to meet modern travel expectations.
- In Kuala Lumpur, licensed cross-border taxi drivers are struggling due to illegal operators offering door-to-door services at lower costs. Some passengers prefer licensed cabs for safety, but many are deterred by the fixed routes, inconvenient terminals, and rigid fare structures.
- To improve the competitive cross-border taxi system, it is necessary to maintain licensing and insurance safeguards, strengthen enforcement against illegal operators, and encourage flexibility in pricing and routes. Singapore has been resistant to full liberalization, but a balanced approach to these measures can benefit both passengers and drivers.
