Malaysia and Singapore crack down on illegal ride-hailing across borders

Illegal ride-hailing services providing flexibility and space

The scheme is however under-utilized according to Singapore’s Land Transport Authority (LTA). There are approximately 300 licensed cross-border taxi drivers currently operating across Singapore and Malaysia in total. This represents meanwhile an opportunity for illegal services.

Since Aug. 5, Singapore’s Land Transport Authority (LTA) has been targeting Malaysia-registered private cars providing unlicensed services. Malaysia’s Road Transport Department followed with a similar blitz on Aug. 9. Malaysian authorities focused on Singapore-registered vehicles operating illegally in Johor.

The raids have disrupted a lucrative shadow industry. Illegal operators typically used luxury multi-purpose vehicles (MPVs). They can up to US$710 a day. Their services have indeed proved popular with Singaporean families and groups as they offered greater space than licensed cross-border sedans.

For licensed drivers, the enforcement is a relief. Under current regulations, Singapore-registered taxis can only pick up passengers at Johor’s Larkin Sentral and drop them anywhere in Singapore. Malaysian taxis, however, may only drop passengers at Ban San Street taxi stand near Queen Street Bus Terminal. This asymmetry had long left room for touts to exploit demand for point-to-point travel.

The Malaysian Ministry of Foreign Affairs has also weighed in, reports The Straits Times. Officials stressed the importance of carrying valid insurance and warned that authorities can seize vehicles if found violating regulations.

The crackdown highlights growing regulatory cooperation between the two neighbors. Both faced pressure to curb unlicensed operators undermining safety and licensed services. However, the days of illegal ride-hailing services are numbered. By December 2026, the much expected opening of a direct LRT line between Singapore and Johor Bahru could diminish demand among travelers.