KUALA LUMPUR - Malaysian registered taxis operating in Singapore must install the Electronic Road Pricing (ERP) 2 on-board unit (OBU) before the system takes effect on January 1, 2027.

Acting Transport Minister, Jeffrey Siow said the requirement is needed to help authorities monitor and take enforcement action against foreign-registered taxis when necessary.

“For foreign-registered private vehicles, we encourage them to install OBU for usage-based charging, although we recognise that occasional visitors may prefer not to do so.

“Vehicles without an OBU can still pay a daily flat fee of SGD5 (RM15), like cars without the in-vehicle unit (IU) today,” he said during the second reading of the Land Transport and Related Matters Bill in Parliament, last Tuesday.

Siow said the OBU will be compulsory for all Singapore-registered vehicles as the new system uses satellite technology instead of gantries to calculate road charges.

As of January 31, about 930,000 vehicles, or more than 93% of all vehicles in Singapore, have already installed the OBU, according to the Land Transport Authority (LTA).

In a statement, the LTA said it remains on schedule to complete the installation exercise by the end of this year.

“From February 15, 2026, vehicle owners who have been invited to install the OBU but have yet to do so will receive a final reminder from the LTA.

“They will be given the next three months from the date of issuance of the final reminder to install the OBU for free. After which, they will need to pay SGD35 (RM109) and SGD70 (RM216) for the installation of OBU in motorcycles and all other vehicles, respectively,” the statement said.

The LTA also warned that only authorised parties are allowed to provide OBU-related services such as installation, repair or removal.

“For serious cases of non-installation, tampering or unauthorised OBU services, the legislation provides for penalties of up to SGD20,000 or imprisonment for a term not exceeding 12 months, or both,” it said.