LTA tightens enforcement as Malaysian tour agencies warn of financial strain
Singapore’s Land Transport Authority (LTA) has intensified its crackdown on illegal cross-border passenger services, leaving more than 100 foreign-registered vehicles impounded in 2025 despite mounting pressure from Malaysian tour operators.
Growing Crackdown on Illegal Rides
According to LTA, more than 100 foreign-registered vehicles have been investigated this year for suspected involvement in illegal cross-border services, with most still impounded while court proceedings continue. Many of these vehicles belong to Malaysian tour companies, whose drivers were caught providing unauthorised passanger transport between Malaysia and Singapore.
Why Fines Do Not Secure Release
The authority clarified on September 4 that paying fines does not guarantee the return of seized vehicles. Instead, separate forfeiture proceedings follow driver convictions. “Where investigations establish that the vehicles were not involved in providing illegal point-to-point services, LTA will release them promptly,” a spokesperson explained.
Malaysian Tour Agencies Under Pressure
Malaysian daily The Star reported on August 24 that nearly 400 tour agencies risk bankruptcy as their luxury multi-purpose vehicles (MPVs) remain detained in Singapore, some for months. Johor alone has around 476 registered travel agencies operating 3,000 MPVs for tourist services. Industry players have warned that the impoundments are crippling their operations.
Licensed Transport Routes Still Allowed
LTA stressed that legal avenues remain for Malaysian operators. Licensed tour buses with ASEAN Public Service Vehicle Permits (PSVPs) may run intercity routes with fixed stops in Singapore or operate sightseeing tours. Additionally, only Malaysia-registered taxis with valid Public Service Vehicle Licences and PSVPs can provide cross-border services. Vehicle Entry Permits (VEPs), however, apply solely to private use and cannot be used for ride-hailing or commercial passenger transport.
Enforcement and Safety Concerns
Since 2022, Singapore has prosecuted 136 drivers for illegal cross-border passenger services. First-time offenders face up to S$3,000 (Rp37.5 million) in fines and/or six months’ imprisonment, with vehicles subject to forfeiture. Repeat offenders face stiffer penalties. LTA has stepped up patrols at hotspots such as Changi Airport, Gardens by the Bay, and land checkpoints, working closely with the Immigration and Checkpoints Authority (ICA).
Policy and Industry Dialogue
In recent weeks, Acting Transport Minister Jeffrey Siow, Senior Minister of State Sun Xueling, and LTA officials held discussions with the National Taxi Association (NTA), National Private Hire Vehicles Association (NPHVA), and the Singapore-Johor Bahru Taxi Association. Industry representatives highlighted that illegal operators create unfair competition and safety risks, reinforcing the need for strict enforcement.
The ongoing impoundments highlight Singapore’s firm stance against illegal cross-border passenger services, balancing regulatory control with economic consequences for Malaysian operators. For both Singapore and Malaysia, the dispute underscores the delicate balance between facilitating tourism and safeguarding legal, safe, and fairly regulated transport services.
Sources: CNA (2025) , Straits Times (2025)
Keywords: Singapore Transport Authority, Illegal Cross Border Rides, Vehicle Impoundment Singapore, Malaysian Tour Agencies, Public Service Vehicle Licence, Cross Border Taxi Services
