SINGAPORE, Sept 4 — The Land Transport Authority (LTA) has been ramping up enforcement efforts to crack down on illegal chauffeur services.

As reported by The Straits Times (ST), in the past two years, LTA has caught 32 drivers using foreign-registered vehicles for unauthorised passenger transport, leading to hefty fines and vehicle seizures.

Despite the rules, only Singapore and Malaysia-registered taxis approved by the LTA and Malaysia’s Land Public Transport Agency are legally permitted to offer cross-border rides — a fact that appears to be either overlooked or disregarded.

The designated pick-up and drop-off points for these cross-border taxi services are Ban San Street Terminal in Rochor and Johor Larkin Terminal (formerly Pasar Bakti Terminal). Previously, licensed taxi drivers were limited to this specific route.

However, in 2012, the regulations were eased, allowing drivers to pick up or drop off passengers anywhere within their home country, as long as they continue to use the designated terminals after crossing the border.

"This arrangement ensures that foreign taxis do not ply the roads illegally to provide point-to-point services outside their home country,” LTA told ST.

A regular day-tripper who only wanted to be identified as Fong told the paper that he still prefers using private chauffeur services because it allows him to negotiate for a lower fare.

"I usually go on Facebook and Telegram groups to look for such services, and have successfully negotiated with drivers to drive me from Johor Baru to Tampines for between S$25 (RM83.15) and S$30,” he was quoted as saying.

At least 10 other Singaporeans told ST that they were unaware the chauffeured service was illegal.

Others, like Gerald (a pseudonym), remain unfazed by the law.

"It’s convenient to have someone pick me up right from my doorstep, and I enjoy some privacy away from the crowd before reaching my destination,” the 27-year-old, who has used the service at least five times in 2024, told the paper.

Passengers can currently find cross-border taxis at Ban San Street Terminal or book them through the hotlines of operators such as ComfortDelGro and Strides Premier. The fares are set at S$70 for advance bookings, S$80 for home pickups, and S$120 for pickups from Changi or Seletar Airport.

Legal vs illegal

As observed by ST during recent visits to Ban San, a long line of licensed taxis were idling with only a few passengers present.

Wong Yew Wah, 61, a Singaporean cross-border taxi driver, noted that this scene is a stark contrast to pre-pandemic times. "Previously, passengers would be waiting for taxis, but now it’s the taxis waiting for passengers,” he said.

HJ Suhaimi, who manages three taxi associations in Johor, told ST that since cross-border operations resumed in May 2022, Malaysian taxi drivers often wait for hours at Johor’s Larkin Terminal. This is because most passengers are "already picked up by unlicensed drivers elsewhere in Johor Baru”.

A Malaysian taxi driver who wants to be known only as Ramesh can attest to this situation. Most days, he arrives at Larkin Terminal at 4am, pays a fee to secure a queue number, and waits up to four hours for a passenger.

After transporting a passenger across the border to Ban San Street Terminal, he pays about S$9 to park his car. There, he must get another queue number and endure another lengthy wait — sometimes 12 hours or more — since Singapore taxis are given priority.

The LTA stated that Singapore and Malaysia are each permitted to operate 200 cross-border taxis and currently, there are nearly 300 taxis are providing such services.

To join the legal fleet, drivers must be members of their respective countries’ cross-border taxi associations, according to Suhaimi and Teng Kok Tai, chairman of the Singapore-Johor Taxi Operators’ Association.

Teng noted that Singapore drivers are required to pay a one-time administrative fee, along with membership and monthly fees. Malaysian drivers have similar requirements but are not subject to the administrative fee, Suhaimi said.

Licensed taxi drivers have long called on authorities to tackle illegal drivers, who have an unfair advantage by avoiding costs such as licenses, memberships, full insurance coverage, mandatory vehicle inspections, and taxes. However, several unlicensed private drivers told ST that they skirt the law to earn higher profits.

These unlicensed drivers attribute their actions to the pandemic and the high cost of living, asserting that they don’t set out to break the law but are driven by survival needs.

Another unlicensed driver, who wants to be known as George, revealed that he began offering illegal rides about five months ago. He earns around S$300 daily from six cross-border trips, significantly more than his previous job, where he worked 12-hour shifts for just S$35.

"I’m choosing an easier way to make a living,” he told ST. "Furthermore, our customers choose our services because we are able to provide door-to-door pickups and drop-offs.”

Meeting demands in a modern age

Transport economist Walter Theseira noted that licensed taxis face a tough challenge competing with the illegal door-to-door chauffeured service, which offers a broad range of vehicle options, from budget to premium.

The associate professor from Singapore University of Social Sciences told ST: "This is a case of the illegal market meeting a wider range of demand than the legal market.”

He added that historically, illegal transport markets flourish when legal markets have too many barriers, preventing legal operators from meeting demand.

The professor suggested to better regulate cross-border services, a combination of stricter enforcement and regulatory changes will allow a broader range of service providers to operate legally.

Veteran transport engineering consultant Gopinath Menon suggested that introducing a regulated private vehicle hire service between Johor and Singapore could be beneficial, given the steady flow of people across the border.

Meanwhile, Malaysian taxi driver Kasinathan Annamalai, 66, is hopeful for a regulatory change that would permit licensed taxis to offer door-to-door service. He believes this would be a more "long-lasting solution” compared to spot checks or arrests.

Associate Professor Lin Weiqiang from the National University of Singapore’s geography department told ST that licensed taxi operators may need to rethink their business model, which he views as outdated in the era of internet platforms and super apps. He recommended listing licensed taxi services on popular shopping platforms or bus ticketing sites like Easybook to increase visibility, rather than relying solely on hotline bookings.

To level the playing field for licensed taxis, the LTA is collaborating with several major online platforms to remove advertisements for illegal cross-border rides.

Google has taken action against ads reported by the LTA, and Carousell has promptly removed non-compliant listings while encouraging users to report such ads.

Meta declined to comment, and Telegram, as well as travel booking platforms Klook and KKday, did not respond ST.

However, checks by the paper in early September revealed that several websites, Facebook pages, Telegram groups, and over 20 Carousell listings still advertise cross-border rides.

The LTA has urged the public to avoid illegal rides for their own safety, as these vehicles and drivers lack proper licensing and insurance.