After their multi-purpose vehicles (MPV) were impounded by the Land Transport Authority (LTA), numerous travel agencies in Johor Baru have stepped forward to say that they are facing bankruptcy, reported The Star on Aug 24.

Some of these MPV owners reportedly said that their vehicles are still stuck in Singapore, even though they have already paid the fines for ferrying passengers from Johor Baru to Singapore without proper permits. 

The vehicles reportedly cost between RM250,000 ($76,470) and RM500,000. 

Some Malaysian vehicle owners have also attempted to go to courts in Singapore to reclaim their assets but have not had any success, The Star reported.

“After 11 months in court, the judge told us the car is officially seized with no further appeal. No documents were issued, leaving us unable to audit our accounts properly,” tour operator Cheries Chia said.

Tour company Muhammad Siddiq Kunyu shared with The Star that three of his MPVs were seized in Singapore this year.

He had hired a lawyer in Singapore to pursue the matter, but there has been no updates.

“The case has been ongoing for more than six months but has been postponed without information, even though we are ready to co-operate,” he claimed.

More than 30 representatives from these travel agencies have reportedly urged the Malaysian Transport Ministry to help them resolve the matter.

‘Unfair to travel agencies here’

One agency owner, Ahmad Khaizurin, said 119 vehicles have been seized by the LTA since this year. 

“Meanwhile, Singapore’s private-hire vehicles continue to have their VEP (Vehicle Entry Permit) issued by Malaysian authorities. This is unfair to travel agencies here. We urge the government to take action and help agencies reclaim our vehicles,” added the 44-year-old.

The tour agencies also said that Singapore authorities have denied their VEP applications for the past two years, barring the licensed tour vehicles from entering the country, reported Malay Mail. 

This have reportedly resulted in up to 50 per cent loss of income for the agencies. 

Ahmad Khaizurin proposed a fare coordination for “the survival of both parties” on both sides of the border, requesting the Malaysian transport ministry to hold discussions with LTA to address the issue.

“As a result of the restriction, this void is now filled by private vehicles operating illegally that enter Singapore and cater to tourists from both countries,” he told Malaysian media.

Ahmad Khaizurin explained that the “top choice” for tourists travelling from Singapore to Johor are the four premium MPVs — Toyota Alphard, Toyota Vellfire, Hyundai Staria and Hyundai Starex — which have allegedly had their VEP applications rejected.

“Some of our agency partners were affected when the vehicles were seized,” he said, claiming that vehicle owners had to pay a fine of $2,200 while drivers were fined $1,800.

“However, none of their vehicles have been returned and there has been no news regarding the matter to date.”

Most of the 100 foreign-registered vehicles remain impounded: LTA

Responding to queries from AsiaOne, LTA clarified that the VEP is not a licensing scheme for taxi services or other commercial purposes, including transport of tourists.

“VEP applications by individuals or commercial entities intending to provide hire-and-reward, e-hailing, or passenger transport services are rejected,” the authority stated.

“Even if they have a VEP, it is illegal for Malaysia-registered cars, including private hire cars, to provide cross-border passenger transport into and within Singapore.”

Cross-border taxi services are only permissible for Malaysia-registered taxis licensed with a valid public service vehicle license and Asean public service vehicle permit issued by the LTA.

LTA also revealed that over 100 foreign-registered vehicles were investigated in 2025 for their suspected involvement in illegal cross-border passenger transport services.

Most of these vehicles remain impounded amid ongoing investigations and court proceedings, LTA stated, adding that these may include vehicles registered to Malaysian tour companies.

LTA explained that no applicable fees are imposed during the period where these vehicles are impounded, but their drivers may be fined or imprisoned if convicted.

Repeat offenders face more severe penalties and their vehicles may also be forfeit.

“Payment of fines do not guarantee the release of vehicles involved,” LTA highlighted, also pointing out that vehicles will be returned to their owners should investigations show that they were not involved in illegal point-to-point services.

“Travellers are encouraged to use authorised cross-border taxis, buses, and trains for their cross-border travel needs,” LTA said. “LTA will continue to enforce against illegal cross-border passenger transport services.”

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khooyihang@asiaone.com