SINGAPORE – Singapore and Malaysia will gradually increase the quota for licensed taxis from 200 now to 500 from each country.

As a start, each country will increase the quota for taxis by 100, prioritised for larger and more premium vehicles that can address the needs of larger groups and business travellers, both transport ministries said in a joint statement on Dec 5.

It added that the two countries aim to do this “subject to effective implementation of safeguards against illegal domestic trips and insurance requirements”.

The statement came after a meeting between Malaysian Transport Minister Anthony Loke and Acting Transport Minister Jeffrey Siow at the 12th Singapore-Malaysia Leaders’ Retreat on Dec 4.

The two countries have also agreed to allow cross-border taxis to drop passengers off anywhere outside their home countries, to improve convenience for travellers.

Currently, they are only allowed to use one designated pickup and drop-off point after they cross the border – Larkin Sentral Terminal, the main public transport terminal in Johor Bahru, for Singapore-registered taxis; and Ban San Street Terminal in Singapore for Malaysian taxis.

Foreign taxis will still only be allowed to pick up passengers at designated points, to prevent them from providing local taxi point-to-point services, the statement added.

“We will gradually increase the number of pick-up points for ride-hail or e-hailing app bookings,” it said.

The statement did not say when these announcements would come into effect.

Both countries will also work towards improving insurance coverage of cross-border taxis, and speeding up claims processing in the event of an accident, it added.

They also agreed to work towards a regulatory regime for cross-border ride-hail and e-hailing platforms and to clearly identify licensed cross-border taxis.

Mr Loke and Mr Siow in the s...