From 1 January 2027 (next year), it will be mandatory for all Singapore-registered vehicles on public roads to be fitted with the next-generation ERP 2.0 On-Board Unit (OBU).
Here is the current timeline and what you need to know:
- Final Reminders: Starting 15 February 2026, the Land Transport Authority (LTA) will issue final reminders to owners who have yet to install the OBU.
- Free Installation Window: Owners have three months from the date of their final reminder to complete the installation for free.
- Subsequent Costs: If you miss the free window, you must pay an installation fee of S$35 for motorcycles and S$70 for all other vehicles.
- Exemptions: Specific vehicles like tractors, airport/port vehicles, and classic or vintage carsare exempt from mandatory OBU installation. However, non-OBU vintage vehicles will pay a daily flat fee (S$3 for motorcycles, S$10 for others) when using ERP-active roads from 2027.
- Penalties: Using a vehicle without an OBU from 1 January 2027 or tampering with the unit can result in fines of up to S$20,000, imprisonment for up to 12 months, or both.
Progress of nationwide installation
About 930,000 vehicles, or 93 per cent of the total vehicle population, have been fitted with an OBU so far, according to figures cited during the debate.
The Land Transport Authority said it is on track to complete the nationwide installation exercise within 2026, ahead of the full ERP 2 rollout the following year.
Vehicle owners who have yet to install an OBU will receive a final reminder from LTA starting on 15 February 2026.
They will be given a three-month window to install the device for free, after which charges will apply.
Did you know this
Do you know that Singapore has been using the current ERP system since 1998? It is reaching end-of-life and is due for a technology refresh.
The new Global Navigation Satellite System (GNSS) based ERP 2.0 system will deliver everything that the existing system can do and add many exciting new services for your convenience without bulky gantries. The transition to ERP 2.0 will be seamless, with no difference in how you are charged for parking or ERP today. There is not need to update any arrangements currently tagged to IU like season parking. During this transition period, there will also be no change to the congestion pricing framework.
