Post by : Meena Ariff

Malaysia is exploring the possibility of introducing ride-hailing services that can operate across the border with Singapore. This initiative aims to make travel between the two countries more convenient, faster, and more flexible for daily commuters, tourists, and business travelers. Malaysian Transport Minister Anthony Loke emphasized that the plan would require agreement and cooperation from both Malaysia and Singapore before it can be implemented.

Talks With Singapore

Minister Loke informed parliament that the idea of cross-border ride-hailing was previously raised with Singapore’s former transport minister, Chee Hong Tat. At that time, Singapore was not ready to discuss the proposal. Loke clarified that Malaysia is fully prepared to continue discussions and negotiations, but stressed that implementation cannot be done unilaterally by either country. He added, “Both parties must agree before this can be implemented,” highlighting the importance of collaboration and mutual understanding.

Goal: Better Connectivity Between Countries

The minister explained that the main aim of introducing cross-border ride-hailing is to improve connectivity and convenience for commuters traveling between Johor Bahru in Malaysia and Singapore. Currently, many commuters face difficulties because of limited travel options. “We hope Singapore will respond positively so that this idea can become a reality,” Loke said. Cross-border ride-hailing would allow private vehicles operating on ride-hailing platforms to transport passengers across the Causeway. This system would be different from the existing cross-border taxi scheme, where only licensed taxis are allowed to pick up and drop off passengers at designated points.

Current Cross-Border Taxi System

At present, the cross-border taxi system is limited and not widely utilized. Under this system, a maximum of 400 taxis from each country can operate across the border. Singapore taxis can only pick up passengers at Larkin Sentral in Johor Bahru, while Malaysian taxis are allowed to pick up passengers only at Ban San Street Terminal in Singapore.

However, this arrangement has not fully met commuters’ needs. Only about 300 licensed cross-border taxi drivers operate across Malaysia and Singapore. Commuters often find the services inconvenient because they do not provide door-to-door service. As a result, unlicensed taxis or private vehicles have become more popular since they offer flexible pick-up and drop-off options, making travel easier and faster.

Challenges of Liberalising Ride-Hailing

While the idea of cross-border ride-hailing seems promising, experts warn that implementing it is not straightforward. Dr. Rosli Khan, managing director of MDS Transport Consultancy in Malaysia, explained that a formal bilateral agreement between Malaysia and Singapore would be necessary. This agreement would need to harmonize laws, regulations, and enforcement procedures in both countries.

“For example, if a Malaysian ride-hailing driver commits a traffic or fare-related offense in Singapore, which country’s authorities would take action?” Dr. Rosli asked. The current legal framework does not support shared enforcement across borders, making the process politically and administratively complex. Other challenges include taxation, insurance coverage, licensing, and ensuring passenger safety.

Efforts to Clamp Down on Illegal Services

Malaysia and Singapore are already taking strict measures to control illegal cross-border ride-hailing services. On August 13, Malaysia’s Road Transport Department detained and seized four private hire vehicles driven by Singaporean drivers providing ride-hailing services illegally in Malaysia. These individuals remain under investigation, and their actions mirror Singapore’s crackdown on illegal cross-border services provided by Malaysian drivers.

Meanwhile, Singapore’s Land Transport Authority (LTA) has been conducting regular patrols at popular areas such as Changi Airport and Gardens by the Bay. They have also coordinated with the Immigration and Checkpoints Authority (ICA) to monitor private vehicles illegally transporting passengers across the border. Earlier this month, 19 drivers were caught in Singapore, and all vehicles were impounded.

Concerns From Local Drivers

Ride-hailing and chartered car drivers in Johor have voiced their concerns about cross-border travel regulations. Many drivers are planning to form an association to advocate for their interests and seek support from the Malaysian government. They hope to ensure that any future legal cross-border ride-hailing system considers the welfare of drivers and provides a fair opportunity for them to operate within the law.

Minister Loke emphasized that Malaysia is ready to continue constructive discussions with Singapore to create a long-term solution for cross-border ride-hailing. He highlighted the importance of cooperation, legal clarity, and safety to ensure that new policies benefit both commuters and drivers. With proper planning, cross-border ride-hailing could provide a safe, reliable, and convenient option for travelers while reducing congestion and improving overall connectivity between Malaysia and Singapore.