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01/11/2023

ERP 2.0 OBU from 1 Nov 2023

ERP 2.0 On-Board Unit Installation Starting in November 2023

The Land Transport Authority (LTA) will begin installation of the new on-board unit (OBU) under the ERP 2.0 system in phases from next month, starting with fleet vehicles.

The new Global Navigation Satellite System (GNSS)-based system will replace the existing ERP system. The current system has been in operation for 25 years (since 1998) and is reaching the end of its operational lifespan. With that, the current in-vehicle unit (IU) will be replaced with the new OBU, which comprises three components – a processing unit, an antenna, and a touchscreen display. For motorcycles, these three components are integrated into a single-piece OBU. The OBU will be provided free of charge to all eligible Singapore-registered vehicles during the installation period. See Annex A for more information on the OBU.

Installation to Commence in Phases - From 1 November 2023, fleet vehicles, for motorcycles and all other vehicles, will have the OBU installed progressively. Vehicle owners will receive a notification from LTA when it is their turn, with instructions on how they can schedule an installation appointment. All other vehicles will progressively have their OBU installed. From the first quarter of 2024, new vehicles will be fitted with the OBU. Remaining existing vehicles will be scheduled for installation in batches, based on the age of the vehicles. The OBU exercise is expected to be completed by end-2025. Installation is free if it is completed within the two-month period stated in the notification. More details about the installation for individual vehicles will be announced early next year.


Introducing ERP 2.0 OBU

The current gantry-based ERP system has been in operation for 25 years (since 1998) and will be replaced by a new Global Navigation Satellite System (GNSS)-based ERP 2.0 system. As part of the shift to the new ERP 2.0 system, all Singapore-registered vehicles will need to replace their In-Vehicle Unit (IU) with a new On-Board Unit (OBU). Once installed, the transition will be seamless, with no difference in how you are charged for ERP and parking today.

Motorcycles will be fitted with a single-piece design that includes a Processing Unit and a small touchscreen for riders to toggle through different functions. Cars and all other vehicles will be fitted with a three-piece design, comprising an Antenna, Processing Unit and an optional Touchscreen Display.

If you choose not to install the Touchscreen Display, you can download a compatible mobile application to view ERP and other traffic information. Currently available apps include:


Next-gen ERP on-board units to be installed from Nov; motorists can opt out of touchscreen display
The new on-board unit consists of a processing unit, an antenna and a touchscreen display mounted on the windscreen

On-board units for a satellite-based Electronic Road Pricing (ERP) system will be installed in vehicles in phases from Nov 1 this year, and the exercise is expected to be concluded by the end of 2025.

In all, nearly one million vehicles will be fitted with new on-board units (OBU), starting in November with about 20,000 fleet vehicles – those registered to a company or organisation with 20 or more vehicles. This group includes public buses, fleet motorcycles and taxis, said the Land Transport Authority (LTA) on Monday. The devices will be installed on new vehicles from the first quarter of 2024, while all other vehicles will have their existing in-vehicle units replaced in batches, based on the vehicle’s age.

In a nod to feedback from the public that the OBU is too bulky, the LTA said motorists can opt out of installing the touchscreen display and get key information via mobile apps on their smartphones instead. The new OBU has three pieces – a processing unit located on the side of the front passenger footwell, an antenna and a touchscreen display mounted on the windscreen. Motorcycles will have a single-piece unit mounted on the handlebar. Vehicle owners will be notified by LTA when it is their turn to install the OBU, with instructions on how to book an appointment.


All you need to know about ERP 2.0 OBU

The electronic road pricing (ERP) system as we know it will very soon be replaced by a new Global Navigation Satellite System (GNSS)-based ERP system. After a two-year delay, motorists in Singapore can finally expect the implementation of the new on-board unit (OBU) under the next generation ERP system.

The Land Transport Authority (LTA) will begin the installation of OBU in phases from November 2023, starting with fleet vehicles. To better ease you into the new system, here's all you need to know about the ERP 2.0's OBU installation:
  • What's the new OBU? - The ERP 2.0 is supported by the Global Navigation Satellite System (GNSS) technology.
  • Do I need to pay for the OBU? - The good news is that OBU will be provided free of charge to all eligible Singapore-registered vehicles during the installation period.
  • When will OBU be installed? - From Nov. 1, 2023, fleet vehicles for motorcycles and all other vehicles will have the OBU installed progressively.
  • Will there be a change to charging framework?
  • The short answer — no.
  • Will ERP gantries be removed? - ERP gantries will only be removed gradually after the installation period.
  • How will this change affect parking? - For now, motorists can continue to use parking.sg to pay for parking digitally.
  • How will your privacy be ensured with the new system? - If you are concerned about your privacy with the implementation of the new system, LTA has ensured motorists that strict safeguards for data privacy have been put in place.
  • What's next? - The OBU exercise is expected to be completed by end-2025


Disappointment with LTA's ‘Bulky’ ERP 2.0 OBU

In a recent parliamentary session, concerns surfaced about the new ERP 2.0 OBU’s design. Despite its bulkiness, Transport Minister Chee Hong Tat did not confirm if it meets the AEC-Q100 heat tolerance standards. The oversight is significant, considering the S$556 million tender for the ERP 2.0 system and the flawless performance of the previous generation’s device for over two decades.

Transport Minister Chee Hong Tat responded to growing concerns over the new On-Board Unit (OBU) for the Electronic Road Pricing (ERP 2.0) system, defending the device’s implementation and design. His explanations, while intended to clarify, only deepened public scepticism about the Land Transport Authority’s (LTA) decision-making process. The minister highlighted the design’s adaptation to Singapore’s harsh temperatures, citing that car footwells—where part of the OBU is to be installed—experience significantly cooler temperatures than dashboards, which can reach up to 52°C. The separation of the OBU into three components was, according to Minister Chee, a necessary response to prevent overheating risks associated with a single-piece unit.

However, this decision comes at the cost of increased bulkiness and complexity, moving away from the more compact design of the previous generation’s IU system, which notably faced no such overheating issues. What’s striking here is the evasion of a critical question posed by Mr Louis Chua, Workesr’ Party MP for Sengkang GRC. Mr Chua asked whether the new OBU meets the Automotive Electronics Council’s AEC-Q100 standard, a benchmark for reliable operations under thermal stress in automotive environments.



COE & ERP since the 1990s
The COE system was implemented in 1990 to regulate the number of vehicles on the road

A Certificate of Entitlement (COE) gives you the right to own and use a vehicle in Singapore.

Understanding COE:
  • To register a vehicle, you must first bid for a COE. You can bid for a COE during the open bidding exercises conducted twice a month.
  • Before the start of each bidding exercise, LTA will announce the vehicle quota of COEs available for each category.
  • When you secure a COE from the bidding exercise, you can register a vehicle and use it for 10 years.
  • At the end of the 10-year COE period, you can choose to deregister your vehicle or renew the COE by paying the Prevailing Quota Premium (PQP) for your vehicle category.
  • If you choose to deregister your vehicle before its COE expires, you may be eligible for rebates from the unused portion of your COE.
To bid for a COE, you will need to follow the bidding procedure. You can submit your bid using:
  • DBS/POSB ATM machines
  • Internet banking (DBS, UOB or Maybank) – for corporate account holders only
  • After submitting your bid, you can check your bid status or revise your bid.
  • You will know if your bid is successful when the bidding results are announced

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