SINGAPORE, Feb 3 (Bernama) -- Malaysian taxis operating in Singapore will be required to install the Electronic Road Pricing (ERP) 2 system’s on-board unit (OBU) ahead of its rollout on Jan 1, 2027.
Singapore’s Acting Transport Minister Jeffrey Siow said the move is necessary to allow the government to track and enforce against such vehicles if needed within the country.
"For foreign-registered private vehicles, we encourage them to install OBU for usage-based charging, although we recognise that occasional visitors may prefer not to do so.
"Vehicles without an OBU can still pay a daily flat fee of S$5 (RM15), like cars without the in-vehicle unit (IU) today,” he said during the second reading of the Land Transport and Related Matters Bill in Parliament on Tuesday.
Siow said the OBU will be mandatory for all Singapore-registered vehicles as it uses satellite technology, rather than gantries, to determine the vehicle's location for charging.
As of January 31, about 930,000 vehicles in Singapore, or more than 93 per cent, have installed the OBU, according to the Singapore Land Transport Authority (LTA).
In a statement, the agency said it was on track to complete the installation exercise this year.
"From February 15, 2026, vehicle owners who have been invited to install the OBU but have yet to do so will receive a final reminder from LTA.
"They will be given the next three months from the date of issuance of the final reminder to install the OBU for free. After which, they will need to pay S$35 (RM109) and S$70 (RM216) for the installation of OBU in motorcycles and all other vehicles, respectively," the statement stated.
LTA also warned that unauthorised persons should not offer OBU-related services, including installation, manufacture, modification, repositioning, removal, repair, or advertising.
"For serious cases of non-installation, tampering or unauthorised OBU services, the legislation provides for penalties of up to S$20,000 or imprisonment for a term not exceeding 12 months, or both," it added.
-- BERNAMA
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