Grab Wins First Singapore-Johor Taxi Licence

Grab received Singapore’s first cross-border taxi licence on April 30, giving passengers a new way to book taxi rides between Singapore and Malaysia through its app. The three-year permit takes effect immediately, while the enhanced Cross-Border Taxi Scheme starts on May 4.The Land Transport Authori…

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Grab Wins First Singapore-Johor Taxi Licence

Grab received Singapore’s first cross-border taxi licence on April 30, giving passengers a new way to book taxi rides between Singapore and Malaysia through its app. The three-year permit takes effect immediately, while the enhanced Cross-Border Taxi Scheme starts on May 4.

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The Land Transport Authority said the move will give commuters “greater convenience and more transport options for commuters between Singapore and Malaysia.” Grab said its new Cross-Border SG-JB (beta) pilot will let riders book door-to-door trips 12 hours to seven days ahead.

GrabCar licence

The Land Transport Authority awarded GrabCar the inaugural Cross-border Ride-hail Service Operator Licence, making it the first operator to hold that permit. The licence allows passengers to book cross-border taxi services through Grab’s platform, extending the company’s app into a route that has been handled through more limited booking channels.

Grab said some GrabCab drivers are licensed to support cross-border journeys, and that it is onboarding licensed cross-border taxis from GrabCab and other taxi operators. For riders, that means the service will not depend on a single fleet. It will pull from more than one licensed source as the scheme opens.

May 4 taxi rules

From May 4, licensed operators can offer cross-border taxi services through their platforms under the enhanced scheme. Cross-border taxis will be allowed to drop off passengers anywhere in Singapore and in Johor Bahru, Iskandar Puteri, Forest City, Kulai and Senai.

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Home country pickups will be without restrictions. Foreign-registered taxis will be barred from street-hailing and will rely entirely on ride-hail and e-hailing bookings to secure return fares at three new designated hubs in each country.

Yeo Wan Ling response

Yeo Wan Ling, NTUC assistant secretary-general and adviser to the National Taxi Association, welcomed Grab’s licence and the broader framework as “protection for platform workers’ livelihoods.” Her response places labour groups inside a rollout that is being closely watched because the new rules also add prominent roof-top signs, distinct cross-border taxi identification decals and specific licence plate prefixes.

The framework also includes digital and visual enforcement. Malaysian taxis will have to install Singapore’s ERP 2.0 on-board units, and vehicles will face a strict 10-year age limit. For passengers, the practical change is immediate: the service can now be booked in advance, while the May 4 scheme sets the terms for where licensed taxis may drop off and how return trips are arranged.

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Chartered financial analyst writing on equity markets, cryptocurrency, and Federal Reserve policy. MBA from Wharton School of Business.