KUALA LUMPUR, Dec 5 — Malaysia and Singapore will significantly expand and liberalise their cross-border taxi services in a move aimed at easing years of unmet demand and curbing a thriving illegal market, The Straits Times reported today.

Both countries have agreed to gradually increase the quota of licensed taxis allowed to operate across the border, raising the cap from 200 to 500 for each side. 

As an initial step, the quota will be expanded by 100 taxis per country, with priority given to larger and more premium vehicles to better cater for business travellers and big groups.

In a joint statement, both countries’ Transport Ministries said the increase would proceed “subject to (the) effective implementation of safeguards against illegal domestic trips and insurance requirements”.

The announcement followed a meeting between Malaysian Transport Minister Anthony Loke and Singapore’s Acting Transport Minister Jeffrey Siow during the 12th Malaysia–Singapore Leaders’ Retreat yesterday.

In one of the most significant changes, cross-border taxis will be permitted to drop passengers anywhere in the other country, ending long-standing restrictions that forced Malaysian taxis to terminate at Ban San Street Terminal in Singapore and Singapore-registered taxis to stop at Larkin Sentral in Johor Bahru. 

Pick-ups, however, will remain limited to designated points to prevent foreign vehicles from providing local point-to-point services.

“We will gradually increase the number of pick-up points for ride-hail or e-hailing app bookings,” the ministries said, without specifying when the changes would take effect.

Both sides also pledged to strengthen insurance protections for cross-border taxi passengers and to speed up claims processing after accidents. 

Officials will also work towards a common regulatory regime for cross-border e-hailing platforms and clearer identification for licensed taxis.

The discussions come after Singapore intensified enforcement against illegal operators earlier this year, following reports that Malaysia-registered vehicles were collecting passengers at locations such as Changi Airport and Gardens by the Bay. 

The spike in demand for legitimate cross-border taxis, noted since mid-2025, has put pressure on both governments to modernise the system.

Loke and Siow “acknowledged the demand for more convenient cross-border transport services”, and instructed their agencies to refine the scheme to meet travellers’ needs while shutting down illicit activity, the joint statement said.

Beyond taxis, the two countries also plan to enhance cross-border bus services for tourism, noting that travellers increasingly rely on routes extending deeper into Malaysia than Johor Bahru. 

A “wider range of services”, the ministers agreed, would help make buses a more attractive option.

The statement said the improvements reflect “both countries’ continued commitment to improving cross-border connectivity and the commuting experience”, adding that officials will work “expeditiously” towards implementation.