All foreign taxis are required to install the new device, which tracks road use, while private vehicles are encouraged to use it.
Singapore’s acting transport minister Jeffrey Siow said the move was necessary to allow authorities to track and enforce charges for such vehicles if needed.
“For foreign-registered private vehicles, we encourage them to install OBU for usage-based charging, although we recognise that occasional visitors may prefer not to do so.
“Vehicles without an OBU can still pay a daily flat fee of S$5 (RM15), like cars without the in-vehicle unit (IU) today,” he said during the second reading of the Land Transport and Related Matters Bill in Parliament on Tuesday.
Siow said the OBU would be mandatory for all Singapore-registered vehicles as it used satellite technology, rather than gantries, to determine the vehicle’s location for charges.
As of Jan 31, about 930,000 vehicles in Singapore, or more than 93%, have installed the OBU, according to the Singapore Land Transport Authority (LTA).
In a statement, the agency said it was on track to complete the installation exercise this year.
“From Feb 15, 2026, vehicle owners who have been invited to install the OBU but have yet to do so will receive a final reminder from LTA.
“They will be given the next three months from the date of issuance of the final reminder to install the OBU for free. After which, they will need to pay S$35 (RM109) and S$70 (RM216) for the installation of OBU in motorcycles and all other vehicles, respectively,” the statement read.
LTA also warned that unauthorised persons must not offer OBU-related services, including installation, manufacture, modification, repositioning, removal, repair, or advertising.
“For serious cases of non-installation, tampering or unauthorised OBU services, the legislation provides for penalties of up to S$20,000 or imprisonment for a term not exceeding 12 months, or both,” it added. - FMT
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