SINGAPORE — Taxi operators will benefit from updates to the regulatory and inspection regimes for taxis and private-hire cars to cut operational costs, Senior Minister of State for Transport Amy Khor said on Tuesday (March 5). 

Currently, taxis incur higher operating costs due to more stringent regulations compared with private-hire cars. 

Taxis have a statutory lifespan of eight years and must undergo more frequent inspections due to higher mileage. Operators must also meet certain service standards, such as maintaining a call-booking system.

To reduce these costs, Dr Khor said in Parliament that the statutory lifespan will be extended to 10 years, as the taxi fleet has been found to be "highly roadworthy". 

The timeframe for this and other changes will be announced later.

"In 2023, taxis have a first inspection passing rate, or FIPR, of 99.5 per cent, well above the 98 per cent passing standard for taxi operators," she said during the Transport Ministry budget debate.

"Extending the statutory lifespan will allow taxi operators to spread the vehicle cost over a longer period."

The Land Transport Authority (LTA) will work with taxi operators to ensure cost savings are passed on to drivers.

These updates are part of the ongoing point-to-point (P2P) transport industry structure and regulatory framework review, which was announced last September.

For taxis under three years old, Dr Khor said the inspection frequency will be lowered from once every six months to once a year to reduce the downtime, as newer taxis are well-maintained with an FIPR of 99.8 per cent in 2023.

To ensure older private-hire cars are roadworthy, she said that those over 10 years old will have their inspection frequency upped to half-yearly, up from yearly currently. Last year, the FIPR for this group of vehicles was 84.5 per cent. 

Dr Khor also said the call-booking requirement will be removed for smaller taxi operators, given the high cost relative to the low utilisation rate.

"We are mindful that a small segment of commuters, comprising about 1 per cent of point-to-point trips, still rely on this service," she said.

"Hence, ComfortDelGro, which currently fulfils more than 99 per cent of call-booking trips, will continue to offer this service."

Dr Khor also touched on the taxi driver's vocational licence, which allows one to drive a taxi in Singapore, saying that the effort and cost of obtaining the licence will be streamlined to ensure the supply of taxis. 

This move comes after receiving feedback from drivers in prior engagements who said that it was easier for them to obtain a PHC driver's vocational licence than a taxi driver's vocational licence, she explained. 

NEW MEASURES FOR POINT-TO-POINT OPERATORS

In response to the increasing reliance on P2P operators for commuting and livelihoods, Dr Khor said new measures will be implemented to minimise the impact on commuters and drivers when service disruptions occur or when an operator exits the market.

"We will require operators to inform LTA, commuters and drivers upon confirmation of any systemic incident that could impair P2P services within an hour," she said.

"They will also be required to submit an incident report outlining measures taken to resolve the incident."

Ride-hail operators must also develop and regularly review their contingency plans to mitigate future incidents.

P2P operators intending to exit the market must notify LTA of their exit plan and adhere to the minimum notice period of 120 days — up from the current 60-day period.

They must also inform commuters and drivers at least 60 days before surrendering their licence to give sufficient time for commuters and drivers to cash out their electronic wallets and transit to other platforms.

Ride-hail services are also expected to better cater to the needs of wheelchair users and families with young children.

Dr Khor said LTA is working with ride-hail operators to allow commuters to easily indicate they have a foldable wheelchair or require a child seat when booking a seat. 

"Currently, not all ride-hail apps provide these options upfront and commuters have to make a separate request, which might be missed," she said.

"We will also require ride-hail apps to indicate if a matched vehicle can accommodate a foldable wheelchair or carries a child seat."

LTA said in a media factsheet that further details on the implementation dates of these regulatory changes and measures will be announced at a later date.