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AsiaOne
07-08-2025
- Automotive
- AsiaOne
Malaysia plans barrierless toll system modelled after Singapore's ERP, Malaysia News
KUALA LUMPUR — Malaysia could soon introduce a barrierless toll booth system to ease congestion on major highways in efforts to revamp its toll-collection processes and manage traffic congestion. Plus Malaysia, the country's largest highway operator, will begin targeted public trials of an automatic number plate recognition (ANPR) system in mid-August on the main North-South Expressway, involving thousands of participants, according to an industry source familiar with the plans. The trials, if successful, will form a key component of a nationwide barrierless toll system that could be implemented by 2027. "This pilot is a crucial step in our shift towards the multi-lane fast flow (MLFF) system. We are starting with ANPR to evaluate its reliability and accuracy in real traffic conditions before rolling out a full-scale system. The aim is to reduce congestion at specific toll lanes and eventually eliminate the need for toll barriers altogether," the source told The Straits Times. The Works Ministry is proceeding with the MLFF toll-collection system through a direct business-to-business (B2B) model, Deputy Minister Ahmad Maslan told Parliament on Aug 6. "The government remains committed to implementing the MLFF system via a B2B model, with no financial burden on the government," he said, addressing recent concerns regarding a previously projected cost of RM3.46 billion (S$1.05 billion) to the government. Another trial — a collaboration between Touch 'n Go and CIMB — on the Kemuning-Shah Alam Expressway involves the installation of gantries and other supporting infrastructure, he added. MLFF solutions typically involve a barrierless toll system that charges motorists as they pass through gantries without needing to stop, tap a card, or slow down. Singapore's Electronic Road Pricing (ERP) is one example of its implementation. According to the source familiar with the Plus project, the pilot will involve selected members of the public and marks an early phase in the broader transition to a barrierless toll system. The ANPR trial is an initiative led by the highway concessionaire itself, rather than a government-led roll-out. Plus operates Malaysia's longest highway, the 748km North-South Expressway, and six other highways, including the Malaysia-Singapore Second Link or Tuas Second Link - which in total serve more than 1.8 million users daily. Its majority shareholder, Malaysian sovereign fund Khazanah Nasional, owns a 51 per cent stake in Plus through its UEM Group subsidiary. The remaining 49 per cent of Plus is held by state pension fund Employees Provident Fund (EPF). Modelled after Singapore's ERP, where motorists pass seamlessly through a barrierless toll system while being charged accordingly, the planned system in Malaysia will use ANPR and e-payment technology to allow vehicles to pass through toll booths without stopping. Plus' early trials will begin on the North-South Expressway, involving nine toll plazas between Hutan Kampung and Sungai Dua in northern Penang state. In future, motorists will no longer need to stick their hands out the window to tap their physical payment cards against a scanner, as is still the case at most toll booths for drivers using Touch 'n Go, credit or debit cards. Other motorists use SmartTAG or radio frequency identification (RFID) in-vehicle units for faster toll payments without cash. Even so, ANPR detection is said to be up to four times faster than RFID, based on tests, according to the same source. SmartTAG uses infrared technology to communicate with a sensor at the toll booth, while RFID relies on a sticker on the vehicle's windshield or headlamp that is scanned by overhead readers. Both SmartTAG and RFID still require cars to slow down while passing through dedicated lanes, while this would not be necessary with the MLFF system. To use the system, trial participants have to download a mobile app, input their car registration numbers and link a payment method such as a credit or debit card. The ANPR cameras installed at the toll plazas, which are already in use at many shopping mall carparks in Malaysia, will capture vehicle number plates in real time, check them against a centralised database, and initiate payment from the linked account without requiring the vehicle to slow down or stop. For now, vehicles that are part of the August trial will still have to pass through the existing toll booths with barriers to test the ANPR system. These barriers could be removed in future further tests. The app, which is free to use, will detect and process toll payments as drivers pass through the gantries. It will also provide access to travel history, receipts and, eventually, enforcement notices. "This is not just about eliminating toll booths. The aim is to eventually integrate payment, enforcement and even subsidy eligibility into a single platform. This kind of integration in future will benefit all motorists," the source familiar with the pilot told ST. Observers say the shift to the ANPR system and app-based payment could significantly cut delays at border checkpoints and toll plazas for those travelling on Malaysia's roads, including Singaporeans, who make more than four million road trips to Malaysia each year. Malaysia has long wanted a barrierless toll system but efforts to roll out a nationwide system have repeatedly stalled due to resistance from some highway concessionaires and regulatory delays. The government's most recent attempt was terminated in late 2024 after it failed to secure buy-in from some toll operators. The contractor involved was criticised for its lack of relevant experience and high cost. In the absence of a functioning national system, major concessionaires like Plus have embarked on plans to test their own solutions. Other places such as Taiwan are already using similar MLFF systems. Malaysia's highways have long been plagued by bottlenecks at toll booths, especially during holiday periods and weekends. Analysts say the planned barrierless system could dramatically reduce congestion and improve the driving experience across the country. Toll plazas are among the biggest bottlenecks on Malaysian highways, noted Professor Ir Dr Ahmad Farhan Mohd Sadullah, a transport expert and vice-chancellor at Universiti Putra Malaysia. "Long queues, as well as chaotic traffic situations, are observed during peak hours on all lanes in any toll plaza on urban expressways," he told ST. Existing toll systems require vehicles to slow or stop for payment and gate control, adding a few seconds of waiting time per vehicle. With high traffic volumes, those seconds add up quickly to form long queues. An MLFF system would reduce severe traffic congestion, especially at peak hours, as vehicles will no longer be required to stop or slow down in the absence of physical barriers. Plus' move to test its ANPR system is likely a direct response to delays in the national MLFF roll-out, said Datuk Ahmad Farhan. But whether the new system can deliver depends on overcoming several hurdles, including the ability to trace offenders who fail to register or link a payment method, observers say. Much will also hinge on the strength of the government's regulatory framework and enforcement mechanisms to support the system. On how the system would handle toll evasion, Datuk Seri Ahmad Maslan said on Aug 6 that motorists who fail to pay will receive notices, and future enforcement could include blocking road tax renewals. "Enforcement remains a critical unresolved issue. Current legislation does not allow toll operators to pursue motorists who exit without paying. Linking unpaid tolls to road tax renewals via the Road Transport Department is under consideration but requires new regulations," said transport analyst Wan Agyl Wan Hassan, founder of transport think-tank My Mobility Vision. [[nid:720946]] This article was first published in The Straits Times . Permission required for reproduction.
New Paper
07-08-2025
- Automotive
- New Paper
Malaysia plans barrierless toll system modelled after ERP
Malaysia could soon introduce a barrierless toll booth system to ease congestion on major highways in efforts to revamp its toll-collection processes and manage traffic congestion. Plus Malaysia, the country's largest highway operator, will begin targeted public trials of an automatic number plate recognition (ANPR) system in mid-August on the main North-South Expressway, involving thousands of participants, according to an industry source familiar with the plans. The trials, if successful, will form a key component of a nationwide barrierless toll system that could be implemented by 2027. "This pilot is a crucial step in our shift towards the multi-lane fast flow (MLFF) system. We are starting with ANPR to evaluate its reliability and accuracy in real traffic conditions before rolling out a full-scale system. The aim is to reduce congestion at specific toll lanes and eventually eliminate the need for toll barriers altogether," the source told The Straits Times. The Works Ministry is proceeding with the MLFF toll-collection system through a direct business-to-business (B2B) model, Deputy Minister Ahmad Maslan told Parliament on Aug 6. "The government remains committed to implementing the MLFF system via a B2B model, with no financial burden on the government," he said, addressing recent concerns regarding a previously projected cost of RM3.46 billion (S$1.05 billion) to the government. Another trial - a collaboration between Touch 'n Go and CIMB - on the Kemuning-Shah Alam Expressway involves the installation of gantries and other supporting infrastructure, he added. MLFF solutions typically involve a barrierless toll system that charges motorists as they pass through gantries without needing to stop, tap a card, or slow down. Singapore's Electronic Road Pricing (ERP) is one example of its implementation. According to the source familiar with the Plus project, the pilot will involve selected members of the public and marks an early phase in the broader transition to a barrierless toll system. The ANPR trial is an initiative led by the highway concessionaire itself, rather than a government-led roll-out. Plus operates Malaysia's longest highway, the 748km North-South Expressway, and six other highways, including the Malaysia-Singapore Second Link or Tuas Second Link - which in total serve more than 1.8 million users daily. Its majority shareholder, Malaysian sovereign fund Khazanah Nasional, owns a 51 per cent stake in Plus through its UEM Group subsidiary. The remaining 49 per cent of Plus is held by state pension fund Employees Provident Fund (EPF). Modelled after Singapore's ERP, where motorists pass seamlessly through a barrierless toll system while being charged accordingly, the planned system in Malaysia will use ANPR and e-payment technology to allow vehicles to pass through toll booths without stopping. Plus' early trials will begin on the North-South Expressway, involving nine toll plazas between Hutan Kampung and Sungai Dua in northern Penang state. In future, motorists will no longer need to stick their hands out the window to tap their physical payment cards against a scanner, as is still the case at most toll booths for drivers using Touch 'n Go, credit or debit cards. Other motorists use SmartTAG or radio frequency identification (RFID) in-vehicle units for faster toll payments without cash. Even so, ANPR detection is said to be up to four times faster than RFID, based on tests, according to the same source. SmartTAG uses infrared technology to communicate with a sensor at the toll booth, while RFID relies on a sticker on the vehicle's windshield or headlamp that is scanned by overhead readers. Both SmartTAG and RFID still require cars to slow down while passing through dedicated lanes, while this would not be necessary with the MLFF system. To use the system, trial participants have to download a mobile app, input their car registration numbers and link a payment method such as a credit or debit card. The ANPR cameras installed at the toll plazas, which are already in use at many shopping mall carparks in Malaysia, will capture vehicle number plates in real time, check them against a centralised database, and initiate payment from the linked account without requiring the vehicle to slow down or stop. For now, vehicles that are part of the August trial will still have to pass through the existing toll booths with barriers to test the ANPR system. These barriers could be removed in future further tests. The app, which is free to use, will detect and process toll payments as drivers pass through the gantries. It will also provide access to travel history, receipts and, eventually, enforcement notices. "This is not just about eliminating toll booths. The aim is to eventually integrate payment, enforcement and even subsidy eligibility into a single platform. This kind of integration in future will benefit all motorists," the source familiar with the pilot told ST. Observers say the shift to the ANPR system and app-based payment could significantly cut delays at border checkpoints and toll plazas for those travelling on Malaysia's roads, including Singaporeans, who make more than four million road trips to Malaysia each year. Malaysia has long wanted a barrierless toll system but efforts to roll out a nationwide system have repeatedly stalled due to resistance from some highway concessionaires and regulatory delays. The government's most recent attempt was terminated in late 2024 after it failed to secure buy-in from some toll operators. The contractor involved was criticised for its lack of relevant experience and high cost. In the absence of a functioning national system, major concessionaires like Plus have embarked on plans to test their own solutions. Other places such as Taiwan are already using similar MLFF systems. Malaysia's highways have long been plagued by bottlenecks at toll booths, especially during holiday periods and weekends. Analysts say the planned barrierless system could dramatically reduce congestion and improve the driving experience across the country. Toll plazas are among the biggest bottlenecks on Malaysian highways, noted Professor Ir Dr Ahmad Farhan Mohd Sadullah, a transport expert and vice-chancellor at Universiti Putra Malaysia. "Long queues, as well as chaotic traffic situations, are observed during peak hours on all lanes in any toll plaza on urban expressways," he told ST. Toll plazas are among the biggest bottlenecks on Malaysian highways. ST PHOTO: HAZLIN HASSAN Existing toll systems require vehicles to slow or stop for payment and gate control, adding a few seconds of waiting time per vehicle. With high traffic volumes, those seconds add up quickly to form long queues. An MLFF system would reduce severe traffic congestion, especially at peak hours, as vehicles will no longer be required to stop or slow down in the absence of physical barriers. Plus' move to test its ANPR system is likely a direct response to delays in the national MLFF roll-out, said Datuk Ahmad Farhan. But whether the new system can deliver depends on overcoming several hurdles, including the ability to trace offenders who fail to register or link a payment method, observers say. Much will also hinge on the strength of the government's regulatory framework and enforcement mechanisms to support the system. On how the system would handle toll evasion, Datuk Seri Ahmad Maslan said on Aug 6 that motorists who fail to pay will receive notices, and future enforcement could include blocking road tax renewals. "Enforcement remains a critical unresolved issue. Current legislation does not allow toll operators to pursue motorists who exit without paying. Linking unpaid tolls to road tax renewals via the Road Transport Department is under consideration but requires new regulations," said transport analyst Wan Agyl Wan Hassan, founder of transport think-tank My Mobility Vision.
Straits Times
06-08-2025
- Automotive
- Straits Times
PLUS Malaysia to trial ANPR toll trial in move toward MLFF
Sign up now: Get ST's newsletters delivered to your inbox Toll booths at the Jalan Duta toll in Kuala Lumpur used for internal testing of PLUS Highways' ANPR system. The red circle on the sign indicates a test lane. – Ma laysia could soon introduce a barrierless toll booth system to ease congestion on major highways in efforts to revamp its toll-collection processes and manage traffic congestion. PLUS Malaysia, the country's largest highway operator, will begin targeted public trials of an automatic number plate recognition (ANPR) system in mid-August on the main North-South Expressway, involving thousands of participants, according to an industry source familiar with the trials. These trials, if successful, will form a key component of a nationwide barrierless toll system that could be implemented by 2027. 'This pilot is a crucial step in our shift towards the multi-lane fast flow (MLFF) system. We are starting with ANPR to evaluate its reliability and accuracy in real traffic conditions before rolling out a full-scale system. The aim is to reduce congestion at specific toll lanes and eventually eliminate the need for toll barriers altogether,' the source told The Straits Times. The Works Ministry is proceeding with the MLFF toll-collection system through a direct business-to-business (B2B) model, Deputy Minister Ahmad Maslan told Parliament on Aug 6. 'The government remains committed to implementing the MLFF system via a B2B model, with no financial burden on the government,' he said, addressing recent concerns regarding a previously projected cost of RM3.46 billion (S$1.05 billion) to the government. Another trial – a collaboration between Touch 'n Go and CIMB – on the Kemuning-Shah Alam Expressway involves the installation of gantries and other supporting infrastructure, he added. MLFF solutions typically involve a barrierless toll system that charges vehicles as they pass through gantries without needing to stop, tap a card, or slow down. Singapore's Electronic Road Pricing (ERP) is one example of its implementation. According to the source familiar with the PLUS project, the pilot will involve selected members of the public and marks an early phase in the broader transition to a barrierless toll system. The ANPR trial is an initiative led by the highway concessionaire itself, rather than a government-led rollout. PLUS operates Malaysia's longest highway, the 748km North-South Expressway, and six other highways including the Malaysia-Singapore Second Link or Tuas Second Link – which in total serves more than 1.8 million users daily. Its majority shareholder, Malaysian sovereign fund Khazanah Nasional, owns a 51 per cent stake in PLUS through its UEM Group subsidiary. The remaining 49 per cent of PLUS is held by state pension fund Employees Provident Fund (EPF). Modelled after Singapore's ERP, where vehicles pass seamlessly through a barrierless toll system while being charged accordingly, the planned system in Malaysia will use ANPR and e-payment technology to allow vehicles to pass through toll booths without stopping. PLUS' early trials will begin on the North-South Expressway, involving nine toll plazas between Hutan Kampung and Sungai Dua in northern Penang state. In future, motorists will no longer need to stick their hands out the window to tap their physical payment cards against a scanner, as is still the case at most toll booths for drivers using Touch 'n Go, credit or debit cards. Other motorists use SmartTAG or radio-frequency identification (RFID) in-vehicle units for faster toll payments without cash. Even so, ANPR detection is said to be up to four times faster than RFID based on testing, according to the same source . SmartTAG uses infrared technology to communicate with a sensor at the toll booth, while RFID relies on a sticker on the vehicle's windshield or headlamp that is scanned by overhead readers. Both SmartTAG and RFID still require cars to slow down while passing through dedicated lanes, while this would not be necessary with the MLFF system. To use the system, trial participants must download a mobile app, input their car registration numbers and link a payment method such as a credit or debit card. The ANPR cameras installed at the toll plazas, which are already in use at many shopping mall carparks in Malaysia, will capture vehicle number plates in real time, check them against a centralised database, and initiate payment from the linked account without requiring the vehicle to slow down or stop. For now, vehicles that are part of the August trial will still have to pass through the existing toll booths with barriers to test the ANPR system. These barriers could be removed in future further tests. The app, which is free to use, will detect and process toll payments as drivers pass through the gantries. It will also provide access to travel history, receipts and, eventually, enforcement notices. 'This is not just about eliminating toll booths. The aim is to eventually integrate payment, enforcement and even subsidy eligibility into a single platform. This kind of integration in future will benefit all motorists,' the source familiar with the pilot told ST. Observers say the shift to the ANPR system and app-based payment could significantly cut delays at border checkpoints and toll plazas for those travelling on Malaysia's roads, including Singaporeans, who make more than four million road trips to Malaysia each year. Malaysia has long wanted a barrierless toll system but efforts to roll out a nationwide system have repeatedly stalled due to resistance from some highway concessionaires and regulatory delays. The government's most recent attempt was terminated in late 2024 after it failed to secure buy-in from some toll operators. The contractor involved was criticised for its lack of relevant experience and high cost. In the absence of a functioning national system, major concessionaires like PLUS have begun plans to test their own solutions. Other countries such as Taiwan are already using similar MLFF systems. Malaysia's highways have long been plagued by bottlenecks at toll booths, especially during holiday periods and weekends. Analysts say the planned barrierless system could dramatically reduce congestion and improve the driving experience across the country. Toll plazas are among the biggest bottlenecks on Malaysian highways, noted Professor Ir Dr Ahmad Farhan Mohd Sadullah, a transport expert and vice-chancellor at Universiti Putra Malaysia. 'Long queues, as well as chaotic traffic situations, are observed during peak hours on all lanes in any toll plaza on urban expressways,' he told ST. Toll plazas are among the biggest bottlenecks on Malaysian highways. ST PHOTO: HAZLIN HASSAN Existing toll systems require vehicles to slow or stop for payment and gate control, adding a few seconds of waiting time per vehicle. With high traffic volumes, those seconds add up quickly to form long queues. An MLFF system would reduce severe traffic congestion especially at peak hours as vehicles will no longer be required to stop or slow down in the absence of physical barriers. PLUS' move to test its ANPR system is likely a direct response to delays in the national MLFF roll-out, said Datuk Ahmad Farhan. But whether the new system can deliver depends on overcoming several hurdles, including the ability to trace offenders who fail to register or link a payment method, observers say. Much will also hinge on the strength of the government's regulatory framework and enforcement mechanisms to support the system. On how the system would handle toll evasion, Datuk Seri Ahmad Maslan said on Aug 6 that motorists who fail to pay will receive notices, and future enforcement could include blocking road tax renewals. 'Enforcement remains a critical unresolved issue. Current legislation does not allow toll operators to pursue motorists who exit without paying. Linking unpaid tolls to road tax renewals via the Road Transport Department is under consideration but requires new regulations,' said transport analyst Wan Agyl Wan Hassan and founder of transport think-tank My Mobility Vision.
Straits Times
05-08-2025
- Automotive
- Straits Times
BlueSG needs time to develop software, refresh fleet, say ex-insiders after winding-down news
Sign up now: Get ST's newsletters delivered to your inbox The two-door electric cars that launched the BlueSG car-sharing service in 2017 are no longer in production. SINGAPORE – The need for a robust software to power the service and for better vehicles has been cited by former BlueSG insiders as two possible reasons behind the electric car-sharing service winding down operations on Aug 8 and relaunching in 2026. BlueSG said it was doing so to upgrade its platform, which includes enhanced technology and a refreshed fleet, to make the service more reliable and efficient. The software manages the vehicle fleet, works with the user database and handles payments. BlueSG switched to its current software in late 2023 from another one that was used before the car-sharing service was sold in 2021 to Goldbell, a Singapore-owned company known for commercial and industrial vehicle leasing. This was because the rights to use the previous software expired, Mr Ng Lee Kwang, a BlueSG board director between 2021 and 2023, told The Straits Times. The new software drew user complaints on issues such as car bookings and payments. Mr Franck Vitte, who founded BlueSG in 2017 and served as its managing director until October 2021, when it was sold, told ST on Aug 5 that the software needed by the car-sharing service is complex to develop and difficult to run reliably. Top stories Swipe. Select. Stay informed. Singapore More train rides taken in first half-year, but overall public transport use stays below 2019 levels Asia Philippines, India shore up ties amid China tensions, US tariff risks Singapore 'She had a whole life ahead of her': Boyfriend mourns Yishun fatal crash victim Singapore Doctor hounded ex-girlfriend, threatened to share her intimate photos, abducted her off street Asia Trump's transactional foreign policy fuels 'US scepticism' in Taiwan Singapore Beauty industry consumers hit by 464% rise in prepayment losses in first half of 2025 Singapore Over 5,900 vape products found in car at Woodlands Checkpoint Singapore 13 taken to hospital after accident involving SBS buses, car in Tampines He said that while it is possible to continue the service and make the switch to a new software platform when it is ready, the company's decision to take a pause in this way would allow it to focus on developing the planned changes and not be distracted by correcting bugs. He also suspects that the developers may have realised that a thorough rework of the foundations, rather than patching fixes to the software, is needed to ensure that the system will operate smoothly. Even though there are ready-made, off-the-shelf software solutions, adapting them to the specific requirement of BlueSG will take a lot of work, Mr Vitte said. This includes handling Electronic Road Pricing (ERP) charges, parking fee payments and having access to the call centre from the smartphone app. The two-door electric cars that launched the BlueSG car-sharing service in 2017 are no longer in production and some of the replacement parts are difficult to source. Mr Ng said there is a need for newer electric cars that can be charged up faster and have longer operating range, so that the cars can be used more frequently to generate more revenue and boost profitability. This comes as BlueSG posted a net loss of $31.1 million between January 2023 and March 2024, based on its latest publicly available financial statements. This is more than two times the $11.4 million net loss the company incurred in the financial year ended December 2022, according to statements filed with the Accounting and Corporate Regulatory Authority. The company attributed the losses to the heavy investments made over the years, which were part of its strategy to achieve its growth plans. It is a marked change of fortune for the firm, which had posted a $1.8 million profit in the financial year ended December 2021. BlueSG is Singapore's first electric-only car-sharing service. Its launch in 2017 was supported by the Land Transport Authority and the Economic Development Board. The car-sharing service has two types of electric vehicles in its fleet: a compact two-door hatchback, a specially built model for BlueSG that entered service in 2017, and the Opel Corsa-e, a larger, four-door hatchback, which was introduced in 2022. BlueSG's revenue leapt to $21.1 million in 2021, from $14.3 million in 2020. Revenue continued to rise steadily to $23 million for the 12 months ended December 2022, and to $24.6 million in the January 2023 to March 2024 period. No financial statement was filed for the 2023 financial year. Responding to ST's queries, BlueSG chief executive Keith Kee said the figures must be viewed in the context of the company's 'deliberate, front-loaded investment strategy'. He added that the company has invested about $70 million over the past years in building up BlueSG. 'We committed to scaling the business in a way that it would support long-term growth, and made a conscious decision to invest ahead of the curve, fully aware that it required upfront capital commitment,' said Mr Kee. In its 2021 announcement about its plans for BlueSG, Goldbell said it planned to invest more than $70 million over five years to grow the car-sharing service's fleet and back-end technologies to boost operational efficiencies and customer experience. Goldbell also aspired to take BlueSG to other cities in the Asia-Pacific. The car-sharing company said its relaunch in 2026 will see an upgraded platform, a refreshed car fleet and more locations for users to rent and return cars. The company is also laying off an undisclosed number of staff. The latest available financial statement, which is for the January 2023 to March 2024 period, showed that BlueSG's costs came to $40.3 million – 46 per cent more than the $27.6 million incurred in the January to December 2022 period. This was due to factors such as the cost of insurance, maintenance and storage of its electric vehicle fleet, which came up to a combined $9.3 million, 42.9 per cent more than 2022's figure of $6.5 million. BlueSG said it has a fleet of 'almost 1,000 electric vehicles' and more than 1,500 charging points. Since it was acquired by Goldbell, its subscriber base has grown from 140,000 to more than 250,000, but it declined to say how many users are active. BlueSG is unique among car-sharing services in Singapore because the hired car does not have to be returned to the same location from where the vehicle was rented out. Using the service involves signing up as a member and booking a car over a smartphone app. The app also unlocks and starts the car. The service is charged on a per-minute basis, instead of larger 30-minute or hourly blocks, which are more common.
New Paper
09-07-2025
- Automotive
- New Paper
Acting Transport Minister Jeffrey Siow on COE system, private-hire cars and other transport issues
There will be no major tweaks to the certificate of entitlement (COE) system in the short term, and the focus now is on ensuring that all vehicles are equipped with on-board units (OBUs) for the next-generation Electronic Road Pricing (ERP) system, said Acting Transport Minister Jeffrey Siow. "The reality is there won't be space for every Singaporean to own a car in Singapore," he told reporters in an interview on June 11, noting that the COE system is how the Government is allocating this "scarce good". Touching on a range of other transport issues, Mr Siow also sought to counter the narrative that private-hire vehicle companies are driving up COE prices, thereby depriving Singaporeans of the chance to own a car. A COE is needed to register and use a vehicle here. On usage-based charging Asked if Singapore will shift to usage-based charging, Mr Siow said this is something that the authorities can look at in the next phase of the roll-out of the new ERP system, known as ERP 2.0. He said the Government had to switch to ERP 2.0 largely because the current system is obsolete. "It was not possible for us to continue running the current ERP system... without problems, because the parts were just not getting manufactured." Mr Siow was director of land transport when NCS and MHI Engine System won a $556 million tender in 2016 to build ERP 2.0, which has the ability to charge for distance travelled. He said the focus now is to ensure that every car is installed with a new ERP 2.0 OBU, and this will take time to complete. As at June, more than 500,000 vehicles have been fitted with OBUs. This means the installation exercise has crossed the halfway mark towards equipping the entire vehicle population of around one million units with OBUs by 2026. On COE allocation On whether private-hire cars have driven up COE premiums, Mr Siow said this discussion needs to take into account the fact that private-hire vehicles have given people access to private transport on a pay-per-use basis. "If we didn't have private-hire cars today, actually the reverse would be true, that a large number of these people will feel that they need to buy a car, and then... they will bid the price of the COE up," he argued. Noting that the economics of a private-hire car are "much more efficient", Mr Siow asked: "If you had one COE left to allocate, is it better to allocate it to a private car owner, who then drives maybe two trips a day and leaves the car in the garage? "Or is it better to share the car among a much larger group of Singaporeans who can have access to the use of a car when they need it? Surely it must be the latter, right?" However, if there are fundamental changes to driving habits in the long term, the Government can then review how it manages the COE allocation mechanism, Mr Siow added. On private-hire driver hours The Acting Minister was also asked for his views on the time that private-hire drivers spend on the road. This is in the light of the recent death of 49-year-old ride-hailing driver Gavin Neo from a stroke. Friends said Mr Neo often spent up to 15 hours behind the wheel to provide for his teenage son and daughter. Mr Siow said the Land Transport Authority (LTA) does not regulate the number of hours that private-hire drivers should be on the road, and the unions have not called for such regulations either, as different drivers have different needs. He said LTA will step in if accident rates for private-hire vehicles are much higher than private vehicles, but this has not been the case. He also pointed to the Workplace Safety and Health Council's guidelines, which encourage drivers to limit their shifts to no more than 12 hours. Mr Siow said the question is whether ride-hailing platform Grab's incentive scheme should be tweaked, noting that there is a very high-achieving incentive tier that few drivers are on. "I have a lot of sympathy for (Mr Neo)... The union has reached out to (the family), and we want to see how we can help the family in that particular instance." On EVs On Singapore's electric vehicle (EV) push, Mr Siow said EVs are a "game changer" for urban design, as roads can be built much closer to buildings, or even through them. This is because EVs are silent and non-polluting, he noted. He also pointed to the Government's commitment to phase out vehicles that run purely on internal combustion engines. The authorities have mandated that all new car registrations must be of cleaner-energy models from 2030. "It is a matter of managing the transition," Mr Siow said. "It just takes time for people to switch. We don't want to force them to suddenly have to give up their vehicle for a new one." On late-night public transport On whether the authorities would make late-night public transport more accessible, Mr Siow said the main constraint for night buses is manpower. "Between choosing to deploy a night bus versus choosing to deploy a new bus service, I have to weigh which is the more immediate priority. So, on that front, we can see opportunistically whether it is worth doing. But I think on the whole, the priority has to be augmenting the HDB estates and the bus networks," he added. For the rail system, time is needed each night for maintenance work, and unlike cities like London, it is not possible to completely shut down segments of an MRT line for maintenance here. This may change in future for the Circle Line, however, once the loop between HarbourFront and Marina Bay stations is closed, as it could allow for 24-hour maintenance work to be done on some sections of the line while maintaining connectivity. Mr Siow said: "At the margins, we can think about extending service hours a little bit, but quite frankly, looking at the priorities, we are under more pressure to create more time for maintenance and to, in fact, reduce service hours, rather than the other way around."
