Over 100 Foreign Vehicles Impounded in Singapore for Illegal Transport

More than 100 foreign-registered vehicles have been investigated by the Land Transport Authority (LTA) in Singapore this year for allegedly engaging in illegal cross-border passenger transport services. As investigations and court proceedings continue, most of these vehicles remain impounded, with some reportedly registered to Malaysian tour companies.

The issue was highlighted following a report by Malaysian newspaper The Star on August 24, 2025, which stated that Singaporean authorities seized multi-purpose vehicles (MPVs) belonging to approximately 400 Malaysian tour agencies. Despite fines having been paid, many of these vehicles are still under seizure. The LTA clarified that the payment of fines does not automatically guarantee the release of the vehicles. A spokesperson explained, “If the driver is convicted, separate forfeiture proceedings will be held to decide if the vehicle should be forfeited as well.”

The LTA assured that vehicles found not to be involved in illegal point-to-point (P2P) services will be returned to their owners without delay. Additionally, the authority confirmed that no fees are imposed while the vehicles remain impounded.

Legal Context and Penalties

Since 2022, the LTA has identified 136 drivers providing illegal cross-border services using foreign-registered vehicles. Those caught face fines of up to S$3,000 (approximately US$2,327) and/or a jail term of up to six months. The penalties become more severe for repeat offenders, who may also lose their vehicles as a consequence of their actions.

The LTA indicated that there are legal avenues for Malaysian tour companies to operate cross-border services into Singapore. This includes licensing for tour buses under schemes like the Intercity Express Bus Services, which provides fixed stopping points in Singapore. All Malaysian-registered buses must obtain an ASEAN Public Service Vehicle Permit (PSVP) to conduct these services.

Conversely, Vehicle Entry Permits (VEPs) are issued to foreign-registered cars and motorcycles for private purposes. However, the LTA clarified that the VEP is not intended for taxi services or any commercial endeavors, including the transportation of tourists. “Even if they have a VEP, it is illegal for Malaysia-registered cars, including private-hire cars, to provide cross-border passenger transport into and within Singapore,” the spokesperson added. Only licensed Malaysia-registered taxis with a Public Service Vehicle Licence and a PSVP are permitted to operate in this capacity.

Ongoing Enforcement and Public Safety

Enforcement actions against foreign vehicles violating Singaporean laws will continue, as emphasized by the LTA. In a recent meeting, Acting Transport Minister Jeffrey Siow, Senior Minister of State Sun Xueling, and representatives from the National Taxi Association (NTA) and the National Private Hire Vehicles Association (NPHVA) discussed strategies to combat illegal cross-border transport issues. Concerns were raised regarding unfair competition and safety risks associated with these illegal services.

Recently, the LTA has intensified its enforcement efforts, conducting patrols in high-traffic areas such as Gardens by the Bay and Changi Airport. The agency is also collaborating with the Immigration and Checkpoints Authority (ICA) to strengthen controls at land checkpoints. Travellers are encouraged to utilize authorized taxis, buses, and trains for cross-border travel.

Members of the public are urged to report any suspected illegal cross-border transport activities. Information such as the vehicle’s registration plate number, the date and time of the incident, and a detailed account can be submitted via an online contact form provided by the LTA.