CJMY
Foreign-registered drivers have until 31 December to buy Singapore’s on-board unit (OBU) at S$158.70.
The price includes 9% GST. Malay Mail puts it at about RM500 before installation fees.
The OBU is optional for foreign cars. Drivers who skip OBU installation will pay a flat Electronic Road Pricing (ERP) fee from 1 January 2027.
What the Land Transport Authority says
For context, Singapore-registered vehicles must have an OBU from 1 January 2027. Foreign cars are not covered by that rule, as The Star reported in February.
According to the LTA’s February release, the OBU is not mandatory for foreign-registered vehicles. Owners could choose to install one from 1 April 2026. The OBU is part of the ERP2 system, which Singapore adopts fully on 1 January 2027. Foreign cars from Malaysia are included.
So, the price is the prevailing S$158.70, including 9% GST, until 31 December 2026. However, the release does not say what it will cost after that. Therefore, drivers who want one should decide soon.
By contrast, without an OBU, foreign motorists pay a flat ERP fee. It is S$10 for most vehicles and S$3 for motorcycles. The fee applies to every ERP operational day the vehicle travels on Singapore roads.
The LTA’s ERP page lists operational days as Monday to Friday. It says ERP does not operate on Saturdays, Sundays or public holidays.
Still, Malaysian taxis are different. They must install OBUs for tracking and enforcement. We covered the wider border changes earlier.
Where to install the OBU
The OBU can be fitted only in Singapore, by authorised workshops and technicians. As a result, drivers must plan a trip just for the installation. The LTA publishes a list of workshops for foreign-registered vehicles. It was last updated on 23 March 2026 and has about 118 entries.
Many sit close to the Causeway. In Woodlands, they include units at E9 Premium, 61 Woodlands Industrial Park E9, and at Mega@Woodlands on Woodlands Close. Others are at Carros Centre on Jalan Lam Huat.
In addition, VICOM has a workshop at 501 Yishun Industrial Park A. In the west, Poh Seng Enterprises is at 1 Tuas South Street 13. That is near the Tuas Checkpoint.
The list advises owners to make an appointment before visiting. For this reason, walk-ins may not be served. Some workshops offer online booking. In addition, some entries share the same address, so check the details with the workshop first.
What the fee means for drivers
The flat fee is simple but not cheap for regular drivers. However, OBU installation adds a one-off cost on top of the unit price. In addition, the VEP is rising to S$50 a day for cars from 1 January 2027. LTA says the VEP will not apply on weekends and Singapore public holidays.
So a weekend trip may avoid both charges. That is my reading of the LTA’s rules, and drivers should check before they travel.
Meanwhile, busy checkpoint days are coming. Our report on Woodlands and Tuas covers the latest advice. Overall, the OBU decision is a cost question for each driver.
The LTA has not said how the flat fee will be collected from drivers without an OBU. Drivers should watch its updates before 1 January. Likewise, they should check whether their OBU installation is booked early enough before the price changes.
Amirull Salihing
Yalinie Mathan
Admin
Add comment