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ERP 2 transition: Over 26,000 foreign vehicles have opted to install OBU ahead of Jan 1 switchover

Over 26,000 foreign vehicles have installed OBUs ahead of Singapore’s ERP 2 switchover on Jan 1. Read more at straitstimes.com.

The Straits TimesLee Nian Tjoe查看原文 ↗
Fast food restaurant branch manager Muhammad Shamsul Naim (right) is among the 26,000 to install an OBU on his Malaysian-registered motorcycle.
Fast food restaurant branch manager Muhammad Shamsul Naim (right) is among the 26,000 to install an OBU on his Malaysian-registered motorcycle.

Fast food restaurant branch manager Muhammad Shamsul Naim (right) is among the 26,000 to install an OBU on his Malaysian-registered motorcycle.

ST PHOTO: KUA CHEE SIONG

Published Nov 05, 2026, 05:00 PM

Updated Nov 05, 2026, 05:00 PM

More than 26,000 foreign-registered vehicles have installed OBUs before Singapore’s ERP 2 switch on Jan 1, showing growing urgency among cross-border commuters.

Foreign vehicles do not have to fit an OBU, but without one they will pay a $3 daily ERP fee from Jan 1, 2027, plus a higher $7 VEP charge.

Singapore is preparing for ERP 2 with new road signs and markings, while 12,000 Singapore-registered vehicles still have not installed the OBU.

SINGAPORE - On his day off in October, 32-year-old Malaysian Muhammad Shamsul Naim rode his motorcycle from Johor Bahru to a workshop in Ang Mo Kio to install an on-board unit (OBU).

His motorcycle was among the 26,000 foreign-registered vehicles to have been installed with an OBU as at October .

This is nearly double the 14,000 such vehicles from mid-September, suggesting that those who need to commute to Singapore are feeling the urgency to have OBUs fitted before the Jan 1 transition to the next-generation road pricing system, or ERP 2.

Foreign-registered vehicles have been able to install OBUs at 121 authorised workshops across Singapore since April 1. But unlike Singapore-registered vehicles, the OBU is not mandatory for them .

Workshops charge upwards of $262.25 to install OBUs for foreign-registered motorcycles, and at least $420.30 for cars and commercial vehicles, depending on the complexity of the work. It costs Singapore-registered vehicles $35 and $70 respectively, if they missed their free installation deadline .

Alternatively, motorists can pay a daily flat ERP fee of $3 on operational days from Jan 1, 2027. ERP is active only on weekdays – apart from public holidays – meaning that foreign motorcyclists who ride to Singapore daily will break even on the installation cost in slightly over four months , before considering the road toll charges they will incur .

Installing an OBU makes even more sense after factoring motorcycle vehicle entry permit (VEP) fee hike from $3 to $7 a day. Without an OBU, a daily rider will pay $10 just to enter Singapore and ride on an ERP-operational day.

However, the number of foreign-registered vehicles that have had OBUs installed is a fraction of the total number of such vehicles entering Singapore daily. In a written reply to a parliamentary question in October 2025, then Acting Transport Minister Jeffrey Siow said there were about 77,000 such vehicles entering Singapore daily in 2024, of which 82% were motorcycles.

Naim, a fast food restaurant branch manager, said that while his employer is subsidising part of the VEP hike, some of his colleagues are concerned about the rising cost of working in Singapore . He lives in Johor Bahru to be with his family and because of the higher living costs here.

Another Malaysian who commutes to Singapore for work is 58-year-old Boon. The painter from Kedah, who goes by a single name, said that besides trying to avoid the year-end deadline rush, he installed an OBU in October for the convenience . This includes being able to settle missed road toll payments and entering carparks without having to tap his stored value card.

Demand at authorised installation centres has been on the rise. Tan Wee Yang, owner of My Car Workshop in Ang Mo Kio, said monthly installations for foreign vehicles have surged from roughly 30 in July to over 100 in the first two weeks of October alone.

Michael Toh, a mechanic at the workshop, said OBU installation on Malaysian vehicles is generally no different from Singapore vehicles, although some cars have window tinting which impedes the hardware from working properly.

Even as the majority of the nearly 1 million applicable vehicles in Singapore have installed OBUs, a group of local owners remain reluctant.

In a written parliamentary response on Nov 4, Transport Minister Jeffrey Siow said that about 12,000 Singapore-registered vehicles mandated to install the OBU have yet to do so, with cars and motorcycles making up 90% of that group.

Along with the OBU installation, Singapore’s roads are slated to be changed with the transition to ERP 2. Road markings and signs are being rolled out progressively. The 95 existing ERP gantries will also be removed or modified from January 2027 under a $6 million contract.

Lee Nian Tjoe is senior transport correspondent at The Straits Times, where he also oversees the Motoring section.

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