Kuala Lumpur, August 28, 2025 — Malaysia and Singapore are looking to make cross-border commuting more seamless by enabling licensed taxis to accept bookings via ride-hailing platforms—but private ride-hailing services, such as Grab or similar apps, remain prohibited for trips across the Strait of Johor.
During a recent parliamentary session, Malaysia’s Transport Minister Anthony Loke expressed hope that cross-border ride-hailing options could become a reality. His remarks follow discussions between Johor’s Chief Minister Onn Hafiz Ghazi and Singapore’s acting Transport Minister Jeffrey Siow, where the potential for modernising the Cross-Border Taxi Scheme surfaced.
Singapore’s Land Transport Authority (LTA) clarified that while the idea is under consideration, there are no plans to fully liberalise cross-border point-to-point (P2P) travel for private hire vehicles. Instead, the focus is on improving convenience for commuters through licensed channels. This includes facilitating app-based bookings for authorised cross-border taxis and expanding the number of pick-up and drop-off points in both countries.
Currently, the Cross-Border Taxi Scheme restricts operations to licensed vehicles only—no private cars or private hire vehicles are allowed to enter Singapore for ride-hailing services. Violations are subject to prosecution under Malaysia’s Road Traffic Act.
Analysts support Singapore’s cautious approach. They cite adequate existing taxi capacity, especially outside peak periods, and warn that allowing ride-hail services could confuse regulatory oversight, dilute safety standards, and undermine local taxi industry stability. (SMU’s Terence Fan, Arthur D. Little’s Daniel Chow)
Looking ahead, the introduction of app-based bookings could offer a practical compromise—enhancing convenience without compromising regulatory control. At the same time, broader integration—like fully liberalised ride-hailing access—remains politically and administratively complex.
