S'pore vehicle owners to get final reminder to install OBU for free, 93% already installed

93 per cent of eligible Singapore vehicles have already installed the new on-board unit (OBU), Minister for Transport Jeffrey Siow said in Parliament on Feb. 3.

Siow was delivering his opening remarks during the second reading of the Land Transport and Related Matters Bill, which seeks to amend legislation to facilitate the transition to the upcoming ERP2.0 system.

Vehicle owners who have not installed the OBU will be issued a final reminder from Feb. 15, 2026, and will be given three months from the date of issuance to install the OBU for free.

Thereafter, OBU installation will cost S$35 for motorcycles and S$70 for other vehicles, according to the Land Transport Authority (LTA).

Mandatory to have OBU from Jan. 1, 2027

ERP 2.0, which uses Global Navigation Satellite System (GNSS) technology for ERP charging, will be completely rolled out on Jan. 1, 2027.

By then, all Singapore-registered vehicles will be required to have an OBU installed to travel on public roads.

ERP 1.0, the current gantry-based system, will be decommissioned, Siow shared.

Certain vehicles, such as existing classic or vintage vehicles, will be exempt, and owners will have the option to install the OBU.

For these vehicles that do not have the OBU installed, their owners will pay a flat ERP fee under ERP 2.0, which is S$3 for motorcycles and S$10 for other vehicles.

Will be offence to tamper with OBU

The Bill, when passed, will also make tampering with or modifying the OBUs without authorisation an offence.

It will also be an offence to provide or advertise such services without authorisation.

Under the proposed legislation, offenders may face penalties of up to S$20,000, imprisonment for a term not exceeding 12 months, or both.

The Bill will also decriminalise missed ERP payments and give vehicle owners, rather than drivers, a five-day grace period to settle outstanding charges.

Under current laws, unpaid missed ERP payments can lead to court prosecution as a traffic offence.

ERP charging points will be judiciously added: Siow

One advantage of ERP 2.0, Siow said, is the ability to add new ERP charging points without the need for expensive and large physical gantries.

Another is the ability to spread out ERP charges in smaller amounts across several locations rather than at one location, which Siow said will be fairer.

"At this point, let me reassure motorists that we will be judicious in adding new charging points, doing so only when needed at persistent congestion hotspots," Siow noted.

Distance-based charging will only be introduced once the new system has stabilised, he added.

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