Operating-cost disparity taken into account in setting fares for cross-border taxi services: MOT

[SINGAPORE] The authorities will “enforce in a strict manner” against those providing illegal cross-border taxi services at low fees that undercut fares pre-negotiated between Singapore and Malaysian authorities, said Senior Minister of State for Transport Sun Xueling in Parliament on Wednesday (Oct 15).

She was responding to questions from Members of Parliament (MPs) about the undercutting of fares and how the Ministry of Transport (MOT) plans to expand the cross-border taxi scheme (CBTS) to allow drivers “broader earning opportunities”.

In particular, MP for West Coast-Jurong West GRC Ang Wei Neng noted that the operating cost of point-to-point (P2P) services in Johor is “a small fraction” of that in Singapore. Ang is also chief executive officer of SMRT-owned taxi operator Strides Premier, which provides cross-border taxi services.

Sun said that the authorities are consulting industry associations to ensure that fares are reasonable to passengers and that cross-border trips are viable for Singaporean drivers, given the operational costs.

Fares are currently fixed from S$60 to S$120, depending on the pick-up point.

“We know that there are disparities between the cost of operating as well as driving in Singapore versus in Johor Bahru; so we’ll take these into consideration when setting fares,” she said.

She added that Ang’s concern is about rides that are illegal, and that the fares of such rides are undercutting that of legitimate services.

The Land Transport Authority (LTA) has been conducting enforcement operations since July and had impounded 107 vehicles, noted Sun.

The authorities recognise there is demand for more convenient cross-border P2P services and they have been exploring options to enhance existing arrangements, she added.

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More drop-off points

This includes liberalising the CBTS “to allow Malaysian cross-border taxis to drop off passengers anywhere in Singapore, and for Singaporean taxis to do likewise in Johor Bahru”.

“To minimise foreign taxis cruising around empty and potentially carrying out illegal trips, these foreign taxis would be allowed to pick up passengers only at designated points so that they do not infringe into the local P2P market,” she said.

The senior minister of state for transport added that the authorities will identify more pick-up points in both Johor Bahru and Singapore for the convenience of commuters, but did not specify how many. “We will discuss options with the Malaysian authorities on a reciprocal basis.”

Asked about the possibility of allowing private-hire vehicles (PHVs) to provide cross-border services, Sun said she would “approach (this) cautiously”.

“We’ve been having discussions with our local National Private Hire Vehicles Association. They are conscious that if we should liberalise the CBTS too widely and not have a separate scheme for PHVs, there could be a situation where PHVs end up providing illegal point-to-point services in Singapore.”

Only endorsed apps

She said that the use of technology, including online booking platforms and on-board units that can track vehicle location, are some ways the authorities can ensure that foreign vehicles are not conducting illegal P2P trips in the Republic.

However, booking apps have to be recognised by both Singapore and Malaysia. Sun noted that the authorities are aware of the use of apps that have not been endorsed.

“We will investigate because we cannot allow the proliferation of apps that have not been discussed between both authorities before,” she said. “This is to ensure that there will not be illegal point-to-point trips being conducted via such apps.”

This applies to chat groups that offer cross-border taxi services as well, she said.

While the government can order the takedown of content linked to illegal activities, MOT and LTA are looking to obtain further legal powers to ensure compliance, should the platforms remain unresponsive, Sun said. “At the same time, the LTA has also been conducting operations to infiltrate these chat groups and to take action against providers of such illegal services.”

“Unfortunately, for operational reasons, I can’t share more details, but rest assured that the LTA is aware of the situation,” she noted.