Home NEWS Changes to VEP and GVP Schemes, and OBU Installation for Foreign-Registered Vehicles Entering Singapore

Changes to VEP and GVP Schemes, and OBU Installation for Foreign-Registered Vehicles Entering Singapore

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Changes to VEP and GVP Schemes, and OBU Installation for Foreign-Registered Vehicles Entering Singapore
Image for illustrations (photo by Kyaizee Mohd)

In order to take into consideration changes in ownership and usage expenses of vehicles registered in Singapore, the Land Transport Authority Singapore (LTA) routinely examines the fees for foreign-registered automobiles in Singapore. This is to guarantee that the price of owning and operating a foreign-registered car in Singapore is equivalent to that of a car registered in Singapore.

The Vehicle Entry Permit (VEP) price for foreign-registered automobiles and motorcycles and the Goods Vehicle Permit (GVP) fee for foreign-registered goods trucks are raised due to the widening cost disparity in recent years.

Image credit: Channel News Asia

According to LTA’s official website, the following are the changes that will take place:

  1. The VEP fee for foreign-registered cars and motorcycles entering Singapore will be raised to S$50 per day (for cars) and S$7 (for motorcycles) per day, from the current S$35 per day and S$4 per day respectively. The VEP fee will now apply on all days, except on weekends and Singapore Public Holidays.
  2. The annual 10 free VEP days and the free VEP hours on weekdays will be removed.
  3. In addition, in preparation for the use of ERP2 system for road charging from 1st January 2027, foreign motorists can install the new ERP2 On-Board Units (OBU) on their foreign-registered vehicles from 1st April 2026.
  4. The GVP fee for foreign-registered goods vehicles will be raised from S$40 to S$70 per calendar month. Owners of foreign-registered goods vehicles can continue to purchase the GVP at the current fee of S$40 before the revised fee comes into effect. However, GVP with a validity period from the effective date of revised fee will be charged at S$70 per calendar month.
  5. The increase in the VEP and GVP fees will take place from 1st January 2027.
  6. The OBU will not be mandatory for foreign-registered vehicles[1]. However, foreign-registered vehicles entering Singapore without an OBU will be required to pay a flat-rate ERP fee. For those who do not have the OBU installed, the motorist will be able to pay a flat-rate ERP fee (S$3 for motorcycles; S$10 for all other vehicles) for every ERP operational day that the vehicle travels on Singapore roads.
  7. Alternatively, owners of foreign-registered vehicles can choose to install the OBU from 1st April 2026. To encourage more foreign-registered vehicles to install the OBU before the implementation of the ERP2 system, the cost of the OBU for foreign motorists would be the prevailing rate of S$158.70 (inclusive of 9% GST) until 31st December 2026. The OBU price excludes the cost of installation that specific authorised dealers/distributors may charge. The OBU can only be installed in Singapore by authorised workshops and technicians. Interested motorists may enquire with authorised OBU workshops for further information on the installation fee. LTA will announce the details on OBU installation for foreign motorists in due course.

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[1] Malaysian taxis will be required to install OBUs for tracking and enforcement purposes within Singapore.

Source: LTA | Updates for Foreign-Registered Vehicles Entering Singapore