Licensed taxis struggle as illegal cross-border operators dominate Singapore-Johor run

Malay Mail

2 days ago

KUALA LUMPUR, Aug 8 — Licensed cross-border taxi drivers in Singapore and Johor Bahru say they are struggling to survive as illegal operators continue to undercut them with door-to-door services.
At Ban San Street Terminal in Singapore, drivers wait hours with no passengers, while across the Causeway, the situation at Larkin Sentral is no better.
Veteran Singaporean driver Haniff Mahbob said, 'There are only drivers here and no passengers,' describing the bleak state of the trade post-pandemic.
Many licensed drivers blame the rise of illegal private vehicles that pick up passengers directly from homes and drop them anywhere across the border, Singapore's CNA reported.
Under current rules, Singapore and Malaysia allow licensed taxis to operate across the border only between designated points, severely limiting their flexibility.
Singapore's Land Transport Authority (LTA) has confirmed there are only about 300 licensed cross-border taxi drivers still operating under the bilateral scheme.
The LTA has stepped up enforcement against illegal services, impounding 19 vehicles recently and continuing patrols at key locations like Changi Airport and Gardens by the Bay.
Despite daily border crossings exceeding 578,000, licensed taxi drivers say they wait hours for a single fare due to falling demand.
Singaporean driver Mohamed Yazid said illegal operators 'are stealing my passengers, my livelihood,' echoing calls for greater enforcement and reform.
Experts say the rigidity of the system is a major deterrent for passengers, who prefer services that offer full-day, door-to-door convenience.
Associate Professor Walter Theseira from the Singapore University of Social Sciences said, 'What [passengers] clearly want is a service that picks them up and delivers them door-to-door.'
Some passengers say they prefer licensed cabs for safety, but many are deterred by the fixed routes, inconvenient terminals, and rigid fare structures.
Calls are growing for both countries to allow licensed cross-border taxis to use ride-hailing platforms and expand their operating points.
Johor Menteri Besar Datuk Seri Onn Hafiz Ghazi has proposed liberalising ride-hailing across the border as part of broader plans to boost tourism under Visit Johor 2026.
However, taxi drivers warn that liberalisation could worsen competition, flooding the market without increasing passenger demand.
Experts say without flexibility on pricing and routes, licensed cross-border taxis may continue to decline, unable to meet modern travel expectations.