johor causeway jam bernama pix

The Singapore Land Transport Authority (LTA) has a few qualms with Grab’s new cross-border ride-sharing service, saying that its business model “did not comply with regulations in Singapore,” as reported by Channel NewsAsia.

Currently, Grab is running a free pilot programme for its GrabHitch Singapore-Johor Bahru service. The statutory board has deemed such cross-border carpool rides as legal as there is no exchange of money.

However, paid cross-border carpool service are illegal. Under Section 101 of the Singapore Road Traffic Act, anyone caught using a foreign-registered motor vehicle as an unlicensed public service vehicle to ferry passengers for hire and payment can be fined up to SGD$3,000 (RM9,072) and jailed up to six months.

“Malaysian-registered cars are not allowed to provide hire-and-reward services in Singapore without a public service vehicle licence,” a LTA spokesperson told Channel NewsAsia. Similarly, Singapore-registered cars are not permitted to do the same in Malaysia without a public service vehicle (PSV) licence.

During the announcement of the GrabHitch cross-border service, it was revealed that a trip JB City Square and Woodlands starts from RM9 (SGD$3) per person. However, prior to its launch on June 20, it was revealed that there would be a three-week-long free pilot programme.

Grab has said that is currently “engaging with the Land Transport Authority in Singapore and regulatory authorities in Malaysia” to come up with a solution for its cross-border carpool service, in order to better improve connectivity between both countries.