Massive Crackdown on Illegal Transport Services

SINGAPORE — In a significant enforcement action, authorities have launched investigations into over 100 foreign-registered vehicles this year, suspected of engaging in illegal cross-border passenger transport services. The majority of these vehicles remain impounded as legal proceedings continue.

Malaysian Tour Agencies in the Hot Seat

According to the Land Transport Authority (LTA), many of the vehicles belong to Malaysian tour companies. A report from the Malaysian newspaper, The Star, revealed on August 24 that Singaporean authorities had seized multiple vehicles from approximately 400 Malaysian tour agencies after drivers were caught providing unauthorized transport services.

Fines Paid, But Vehicles Still Impounded

Despite drivers paying their fines, the vehicles remain under lock and key, with some being held for months. Many companies are now facing financial ruin due to these escalating circumstances. In response, the LTA stated that paying fines does not guarantee vehicle release. A spokesperson emphasized, "If the driver is convicted, separate forfeiture proceedings will determine the vehicle's fate."

Stringent Penalties for Offenders

Since 2022, the LTA has apprehended 136 drivers for operating illegal cross-border services. Offenders face hefty fines of up to S$3,000 (about US$2,327) and may also face six months in jail. Repeat offenders are subject to even harsher penalties, including the possibility of vehicle forfeiture.

Permitted Cross-Border Services Exist

While the regulations may seem strict, the LTA clarified that there are legitimate pathways for Malaysian tour companies to operate in Singapore. They can license tour buses to transport tourists across the border under specific schemes. Malaysian buses must obtain an ASEAN Public Service Vehicle Permit (PSVP) for these services.

The VEP Misunderstanding

Additionally, the LTA issues Vehicle Entry Permits (VEPs) for foreign-registered vehicles, allowing them entry into Singapore for private use. However, the LTA clarified that the VEP does not serve as a license for taxi services or commercial transport. Applications for hire-and-reward transport services will be outright rejected.

Conclusion: Navigating Cross-Border Regulations

Only Malaysia-registered taxis that hold both a Public Service Vehicle License and a PSVP from the LTA are authorized to provide cross-border taxi services. As Singapore continues to tighten regulations, both authorities and transportation companies must navigate these complex legal waters carefully.