Yunos: Increasing the number of taxis to 500 could cause market saturation.
They worry about high costs, potential oversupply under cross-border route policy update
MALAYSIAN taxi drivers plying the Johor Baru-Singapore cross-border route are calling for urgent clarification on a new policy that will allow them to drop off passengers anywhere in the republic.
Following a joint announcement regarding the new ruling by Malaysia and Singapore on Dec 5, taxi drivers at Larkin Sentral Terminal said they were still in the dark regarding the plan’s specifics.
Larkin Sentral Terminal coordinator Abdul Rahman Atan, 60, described the current situation as “vague”, noting that most taxi drivers were currently relying on news reports and social media for information.
“Until today, nobody from the authorities has come to explain the new ruling.
“The policy lacks specific details,” he said when met at the terminal in Jalan Garuda, Johor Baru.
Currently, Malaysian-registered taxis are restricted to a “terminal-to-terminal” service, thus only allowed to ferry passengers from Larkin Sentral to the Ban San Street Terminal in Singapore.
In contrast, Singapore-registered taxis already enjoy the privilege of dropping passengers off at various locations in Malaysia.
Beyond policy confusion, drivers are also grappling with financial implications of the new plan.
A key requirement for the new service is installation of updated Electronic Road Pricing (ERP) card readers in Malaysian taxis.
“We were informed it costs S$600 (RM1,895) for the new card,” said Abdul Rahman, adding that the existing ERP card reader installed in Malaysian-registered taxis was S$150 (RM474).
The potential expansion of taxi fleets is also causing anxiety among veteran drivers.
Yunos Makon, 60, highlighted concerns over a proposal to increase the number of licensed taxis from 200 to 500.
“This could cause market saturation, which would drive down earnings and increase competition,” he said.
Yunos pointed out that currently, only about 150 out of the 200 licensed taxis on each side were actively plying the Johor Baru-Singapore cross-border route.
However, he acknowledged that if implemented correctly, the policy could help eliminate unlicensed ride-hailing services that currently operated between Larkin Sentral and Singapore.
Taxi drivers are hopeful the hurdles can be cleared by January or early February 2026.
This timeline would allow them to take advantage of the expected travel surge during the Chinese New Year and Hari Raya Aidilfitri festive periods, in February and March respectively.
The authorities have reminded the public that providing cross-border transport without a valid public service vehicle licence remains a serious offence.
Under Singapore’s law, offenders face fines of up to S$3,000 (RM9,473) and a jail term of up to six months.
