14/04/2024

Disappointment with LTA's ‘Bulky’ ERP 2.0 OBU

Update 11 May 2024: LTA’s $556 million misstep: Approving an ERP 2.0 device that cannot meet minimum standards of heat tolerance

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.



One-piece ERP 2.0 unit for motorbikes cannot be used in cars due to 'greenhouse effect': Chee Hong Tat
For motorcycles, the OBU components - a processing unit, an antenna and a touchscreen display - are integrated into a single unit. (Photo: CNA/Hanidah Amin)

The one-piece ERP 2.0 on-board unit (OBU) used for motorcycles cannot be used for cars, as the “greenhouse effect” within a car can make it too hot for such a device to be placed on the dashboard. On Wednesday (May 8) in parliament, Minister for Transport Chee Hong Tat explained the rationale for cars requiring a three-piece OBU. Issues related to the device, including its multiple parts and placement within the vehicle, have caused considerable consternation among motorists.

Specifically, Mr Chee was responding to a question by Member of Parliament Lim Wee Kiak (PAP-Sembawang), who had asked why a one-piece OBU could not be used for both motorcycles and cars. “If you think about the physics of it, in an enclosed environment with glass, it is like a greenhouse … which will cause the interior of the car in an enclosed space to be warmer,” replied Mr Chee. He said tests had shown it was "quite clear" that both footwells - driver and passenger - experienced significantly lower temperatures than that of the dashboard on a sunny day. “The ambient temperature: If it's about 35 degrees - for the motorcycle, (it) is pretty much that because it's not an enclosed space,” said Mr Chee. For the footwell of a car, he added, temperatures can go up to 38 to 39 degrees Celsius and on the dashboard, as high as 50 to 52 degrees Celsius.

“With this kind of temperature, if you were to put a single-piece OBU, which means the antenna, the display, and the processing unit all on the dashboard, there is a risk that it could overheat, and then it will affect the functionality of this unit,” he said. A cooling fan could be incorporated into the OBU's design, but this would make the system very bulky. “I don't think motorists will want a very big and bulky one piece unit on their dashboard. It would not be the right design,” he said. Mr Chee added that early adopters who had installed their processing unit on the passenger side could opt to switch it over to the driver’s side without charge. “I think that is fair because when they installed earlier, they were not given an option,” said Mr Chee. “But if some of them now want to do it, we will offer this reconfiguration for them free of charge.”



ERP 2.0 early adopters can reposition unit to driver’s side for free: Chee Hong Tat
Previously, early adopters of the ERP 2.0 had no choice but to place the processing units in the front passenger’s footwell. PHOTO: ST FILE

Motorists who have had the next-generation Electronic Road Pricing system (ERP 2.0) on-board units (OBU) installed in their vehicles as at May 2 can reposition the processing units from the passenger’s footwell to the driver’s footwell for free if they wish, said Transport Minister Chee Hong Tat.

About 2 per cent, or 18,000 vehicles, of almost one million vehicles in Singapore have been fitted with OBUs since August 2023, noted Mr Chee, with around 11,000 of them being fleet vehicles such as buses and company-registered vehicles. Mr Chee said this in Parliament on May 8 in response to questions from MPs on public concerns about the design of the ERP 2.0 on-board unit. This follows complaints from drivers about potential safety risks in reaching for payment cards located at the passenger’s footwell, as well as the bulkiness of the three-piece OBU comprising the processing unit, an antenna and a touchscreen display.

Previously, early adopters of the ERP 2.0 had no choice but to place the processing units in the front passenger’s footwell when the OBUs were installed in their vehicles from August 2023. To ensure fairness, the switch in the location of the ERP 2.0 processing units will be free for these users, said Mr Chee in response to a question from Dr Lim Wee Kiak (Sembawang GRC) who asked about Mr Chee’s experience with the unit as an early adopter.



Netizens voice disappointment as LTA persists with ‘bulky’ ERP 2.0 OBU implementation

Some motorists have expressed their disappointment towards the Land Transport Authority (LTA) for persisting with the rollout of the new Electronic Road Pricing system, ERP 2.0. Criticism has been directed at the new on-board units (OBUs) due to their bulky design and inconvenient placement of the cash card reader, such as beneath the glove compartment or in the front passenger footwell.

Many motorists have voiced concerns about whether the LTA genuinely considers user feedback, questioning the rationale behind proceeding with and defending the current design. Earlier on 28 March, the LTA announced that existing local motorcycle owners would progressively receive notifications regarding OBU installations via letter, email, or SMS starting from 1 May. Additionally, the LTA stated that all new vehicles registered from 1 May onwards will come equipped with the ERP 2.0 system’s OBU already installed, marking the next phase of installation for these two groups of motorists. The initial phase of installation commenced in November 2023, focusing on company vehicles as the first recipients of the OBU. Currently, over 13,000 vehicles have been fitted with OBUs, with approximately 75 per cent belonging to company fleets such as buses and motorcycles, according to the LTA.

Meanwhile, in a recent CNA article, several motorists have voiced frustrations regarding the difficulty in accessing their CashCard. Some motorists have expressed their disappointment towards the Land Transport Authority (LTA) for persisting with the rollout of the new Electronic Road Pricing system, ERP 2.0. Criticism has been directed at the new on-board units (OBUs) due to their bulky design and inconvenient placement of the cash card reader, such as beneath the glove compartment or in the front passenger footwell. Many motorists have voiced concerns about whether the LTA genuinely considers user feedback, questioning the rationale behind proceeding with and defending the current design.


'Too inconvenient': Motorists complain about ERP 2.0 card reader but welcome changes in installation process
The processing unit containing the payment card is installed on the driver's left side. (Photo: CNA/Hanidah Amin)

Motorists using the ERP 2.0 system have complained about the placement of the card reader, which they say makes it difficult for them to take out their CEPAS card. These motorists are early users of Singapore's new Electronic Road Pricing system, known as ERP 2.0, which will be satellite-based and can detect if a vehicle is in a congested area.

Installation started in November last year, with more than 13,000 vehicles fitted with the new on-board units (OBU) so far. About 75 per cent are company vehicles such as buses and motorcycles, said the Land Transport Authority (LTA). Some cars that are part of rental fleets have also had the OBU installed. The next phase of installation begins next month, when motorcycle owners will be progressively notified of their OBU installation. All new vehicles registered from May 1 will also come with the new unit.

CNA spoke to two drivers who have had the new units in their vehicles for at least a month, and a motorcyclist who had it installed last week. While the drivers complained about the card reader placement and the touchscreen display's size, they welcomed LTA's announcement last month that it would implement changes in the installation process following feedback from early adopters.


New ERP system: Motorists think 3-piece onboard unit too big and clunky
The next-generation Electronic Road Pricing system features a three-piece onboard unit, including a touchscreen and processing unit. PHOTOS: LAND TRANSPORT AUTHORITY

Motorists welcome the additional features of the next-generation Electronic Road Pricing system, but feel its three-piece onboard unit (OBU) is clunky, inelegant and takes up too much space. Mr Eugene Ong, 50, said: "Singaporeans love their cars, and they want to preserve their original look and feel as much as possible. "It would be good if we can streamline and have the OBU interface with the infotainment systems - which most modern cars have - so that there is no need for another touchscreen."

As for cars without an infotainment screen which can interface with the OBU, the sales director suggested options for "flexible placement" of the touchscreen. The Land Transport Authority (LTA) announced on Tuesday (Sept 8) that installation of a new OBU to replace the current in-vehicle unit will start in the latter half of next year.

In addition to providing information on ERP charging locations and rates, the OBU will also give real-time road traffic updates and locations of nearby School Zones and Silver Zones. It will have two designs - a one-piece unit for motorcycles; and for other vehicles, a three-piece unit comprising an antenna, a touchscreen display to be mounted on the windscreen and a processing unit which can be mounted beneath the dashboard.


Controversial touchscreen display for the ERP 2.0 OBU (On-Board Unit) will be optional for motorists
The compact antenna unit of the ERP 2.0 OBU (On-Board Unit) without the optional touchscreen display

The Land Transport Authority (LTA) has announced that the installation of the touchscreen display for the ERP 2.0 OBU (on-board unit) will be optional for motorists who prefer to use their smartphone instead. They can use the LTA's official ERP 2.0 app to access key ERP 2.0 information such as road pricing alerts, ERP 2.0 payments/deductions and CEPAS card status/balance in the OBU's processing unit. Compatible third-party apps can also be used for ERP 2.0. One advantage of using the integral touchscreen display, however, is its ability to adjust the audio alert volume (e.g. for ERP 2.0 charge) from the OBU processing unit. Without the touchscreen display and with just the smartphone app, the OBU's audio alert volume has to be set at the point of installation.

The touchscreen display won't be installed if the motorist so chooses, but the antenna unit remains, along with the processing unit. The antenna unit is on the right side of the windscreen near the A-pillar (where the IU is currently located by default), while the processing unit will be mounted on the right side of the front passenger footwell. However, the car owner can have the processing unit placed elsewhere within the cabin, subject to the installer's assessment and the suitability of the alternate location. All vehicle owners will get the three-piece OBU (touchscreen, antenna unit, processing unit) at the point of installation, even if they opt to install the system without the display. 

LTA will notify vehicle owners progressively, with instructions on how to schedule an installation appointment within a two-month period. LTA will also issue a list of workshops authorised and trained to install the OBUs. The device and its installation will be free for motorists who receive the notification from LTA. The OBU installation exercise is expected to take 18 to 24 months and will start in November 2023 with fleet owners (with 20 or more vehicles), including public buses, taxis and goods vehicles. Each installation in a car will take about three hours. The new OBU comes with a five-year warranty, same as today's IU.


All you need to know about ERP 2.0 & new on-board unit installation from Nov. 1, 2023

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. The ERP 2.0 is supported by the Global Navigation Satellite System (GNSS) technology. With that, the current in-vehicle unit (IU) will be replaced with the new OBU, which provides value-added services for motorists, such as advance alerts on charging locations and traffic updates.

OBU comprises three components – a processing unit for payment transactions, an antenna that communicates with ERP, carpark gantries and GNSS, and a touchscreen display. The display notifies motorists about ERP and payment information, as well as provides other information such as locations of nearby Silver Zones, speed cameras and bus lanes. According to LTA, the display is also expected to support additional features like real-time traffic alerts and payment of roadside parking and tolls at checkpoints when all vehicles have transitioned to ERP 2.0.


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.


ERP 2.0 card reader difficult to reach, user questions OBU design

 new technology is leaving many motorists flummoxed due to its placement in cars. As part of the Electronic Road Pricing 2.0 (ERP 2.0) upgrade, the new card reader for the On-Board Unit (OBU) is located under the dashboard near the front passenger seat.

Significantly further than its previous spot on the dashboard in front of the driver, the new location is leaving users struggling to insert and remove cards. One video on TikTok aptly summed up the experience. The clip even made its way to the ROADS.sg Facebook page, where it went viral with nearly 2,000 shares in less than a day. The TikTok video posted by Ignition Labs on Saturday (27 April) showed the main problem that motorists face.

The slot for the card reader faces the passenger seat, meaning drivers would need to insert their cards at an awkward angle from the driver’s seat. Demonstrating just how challenging the manoeuvre is, a driver in the video was only able to insert his card after two attempts. On both tries, he had to reach all the way to the space in front of the passenger seat and use his left hand to insert the CashCard. ”Who’s the champion who came up with this idea?” he asked.


On-board unit for ERP 2.0 – the good, the bad and the ugly

You can complain all you want, but an on-board unit needed for Singapore’s transition to the next-generation Electronic Road Pricing (ERP) system is finding its way into your car.

It consists of three parts – a Global Positioning System (GPS) antenna; a display, which can either be the supplied item or through approved smartphone apps; and a processing unit.

The Straits Times had the on-board unit fitted to a 2007 Toyota MR-S without the display screen. This is a two-seater with a snug cabin. The installation, which took just over an hour, was done in early January at the Vicom Inspection Centre in Bukit Batok.

related:

Full adoption push for SimplyGo a 'judgment error'

With the SimplyGo plan shelved, Transport Minister Chee Hong Tat on Jan 22 said the authorities will spend an additional $40 million to continue operating the current ticketing system. 

While the plan has been halted, the SimplyGo platform continues to run for commuters who still wish to switch to the account-based system. It is not yet known if the plan to switch everyone to the platform will resurface in the future. Senior transport correspondent Lee Nian Tjoe weighs in on the future of SimplyGo in Singapore.

To The Point explains the news to you with experts, newsmakers and journalists. The vertical-format show gives quick analysis of a topic's most salient points in minutes for our audiences on the go, whether it's a viral social post everyone's been talking about, sociocultural issues, or hard-hitting headline news.



Card-Based Ticketing Vs Account-Based Ticketing

Most traditional transport ticketing systems are the Cash-Based Ticketing or ‘Card Centric.’ This means the travel information and the right to travel on public transport is stored in the Card. A card-based ticketing scheme stores transaction data on the cards and transactions are processed instantly when the cards come into contact with payment terminals which enable you to see the fares being deducted and the Card balance. This is the same for magstripe paper or smartcard ticketing systems. These ‘Closed-Loop’ systems, where the fare media is supplied by the transport provider, have been around for years and provide a robust solution in which transactions are primarily stored on the card and only secondarily in the readers and then in the local and/or central back-offices.

In recent years, thanks to advances in communications technologies, innovative transport providers have launched new transport ticketing systems that allow passengers to use contactless bank cards, mobile phones, wearables, or other IDs to travel. These new technologies allow for ‘Open-Loop’ and ‘Account-Based’ systems. They provide a greater degree of convenience for passengers than ‘Card Centric’ and cash-based ticketing systems, while saving transport providers money. The transit fare collection system architecture that uses the back-office system to apply relevant business rules, determine the fare, and settle the transaction.”

Essentially right to travel is managed by the central back office and the ‘ticket’ the passenger has acts as a 'token' or proof of the right to travel and identifier of a customer’s account - hence, Account-Based. The back office stores the tokens usage patterns and also settles the transaction (based on usage). As such, the back office is the primary source of truth, unlike in a Card Centric system where, as described above, it is the card. Because of this, passengers are able to use what they have in their pocket to travel, be it an cEMV contactless bank card, smartcard, phone or a smart wearable and the payment will link with their ‘account’ residing in the back office. This means passengers no longer need to buy a ticket or understand fares to travel, safe in the knowledge they will be charged 'best fare' for their journey. Account-Based Ticketing systems are also better placed to take advantage of the advances in technology to run and scale more efficiently, with the back-offices often being managed from the ‘Cloud’.

related:


Electronic Road Pricing (ERP)

Electronic Road Pricing (ERP) is a system used to manage road congestion in Singapore.
You pay a fee when driving through an ERP gantry during operational hours. ERP charges are reviewed regularly to keep traffic moving at an optimal speed. There are different ERP operating hours on the eve of major public holidays. 

ERP 1.0 IU
  • The In-vehicle Unit (IU) in your vehicle deducts the ERP charges based on your chosen mode of payment. To avoid ERP violations, sign up for backend payment services.
  • When you sign up for a backend payment service, the service provider will notify you once the service is activated. 
  • If you drive through an ERP gantry without paying, you will receive a notice of ERP violation. You will then have to pay the ERP charge plus an administrative fee.
  • All Singapore-registered vehicles must install an IU to drive through operating ERP gantries. If you do not have an IU, there is a penalty of $70.00 for each operating ERP gantry you drive through. The IU in each vehicle communicates with the ERP gantry to deduct the ERP charge. You can install your IU at any LTA-Authorised IU Inspection and Service Centre. For IU-related issues, you can visit an IU inspection centre. Each IU comes with a label stating the IU number, you can refer to the pictures below on how the label looks like. Alternatively, you can also check your IU number online.

ERP 2.0 IU
  • 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.
  • The new Global Navigation Satellite System (GNSS) based ERP 2.0 system will deliver all the functionalities of the existing system plus a range of new motorist-friendly services. With GNSS, ERP 2.0 also eliminates the need for bulky gantries on our roads.
  • As part of the shift to the new system, all Singapore-registered vehicles would need to replace their In-Vehicle Unit (IU) with a new On-Board Unit (OBU). Since November 2023, the OBU is being installed in some vehicles, starting with fleet vehicles and then new motorcycles from mid-Feb 2024. From 1 May 2024, OBUs will be installed in all new vehicles and existing motorcycles. All other vehicles will be progressively notified from later part of 2024.
  • Once the new OBU is installed, the transition will be seamless, with no difference in how you are charged for parking or ERP today. You would not need to update any arrangements currently tagged to your IU (e.g. season parking). During the transition period, there will also be no change to the congestion pricing framework. 
  • Motorcycles will be installed with a single-piece OBU comprising a Processing Unit with a small touchscreen.For other vehicles, the OBU is designed as a three-piece unit to provide additional functionalities, optimise performance under warm weather conditions, and allow flexibility for replacing individual parts. Vehicle owners can choose to install the Processing Unit, Antenna, and a Touchscreen Display; or just the Processing Unit and Antenna, with the support of a mobile application downloaded to a smartphone.
  • The new OBU will provide information on ERP and parking charges. The three-piece OBU will also deliver real-time road safety information such as locations of nearby school zones, Silver Zones, bus lanes and speed cameras.
  • More features will be added to the system throughout the installation exercise. Since 19 April 2024, we have introduced a button on the touchscreen display to temporarily deactivate the CEPAS card to facilitate use of complimentary parking ticket. The button does not affect ERP payments - ERP deduction will still be made when you reach the next active ERP gantry, even if you do not press the button to reactive the card after leaving the carpark.
  • In future, the OBU will alert motorists when approaching an ERP-charging location and display real-time traffic incident alerts, so that motorists can make more informed decisions on their travel route. Through the OBU, motorists will also be able to pay for usage licences such as for off-peak cars, classic/vintage vehicles, tolls* at existing Woodlands and Tuas checkpoints, and roadside parking.


Electronic Road Pricing

The Electronic Road Pricing (ERP) system is an electronic toll collection scheme adopted in Singapore to manage traffic by way of road pricing, and as a usage-based taxation mechanism to complement the purchase-based Certificate of Entitlement system. There are a total of 93 ERP gantries located throughout the country, along expressways and roads leading towards the Central Area. The ERP was implemented by the Land Transport Authority (LTA) on April 1, 1998 to replace the preceding Singapore Area Licensing Scheme (ALS) that was first introduced on 11 August 1974 after successfully stress-testing the system with vehicles running at high speed. The system uses open road tolling; vehicles do not stop or slow down to pay tolls

ERP 1.0 IU
  • The scheme consists of ERP gantries located at all roads linking into Singapore's Central Area. They are also located along the expressways and arterial roads with heavy traffic to discourage usage during peak hours. The gantry system is actually a system of sensors on 2 gantries, one in front of the other. Cameras are also attached to the gantries to capture the rear license plate numbers of vehicles. As of August 23, 2023, there were 93 ERP gantries in Singapore. New gantries are implemented where congestion is severe, like expressways and other roads.
  • A device known as an In-vehicle Unit (IU) is affixed on the lower right corner of the front windscreen within sight of the driver, in which a stored-value card, the NETS CashCard, is inserted for payment of the road usage charges. The second generation IU accepts Contactless NETS FlashPay and EZ-Link. The cost of an IU is S$150. It is mandatory for all Singapore-registered vehicles to be fitted with an IU if they wish to use the priced roads. When a vehicle equipped with an IU passes under an ERP gantry, a road usage charge is deducted from the CashCard in the IU. Sensors installed on the gantries communicate with the IU via a dedicated short-range communication system, and the deducted amount is displayed to the driver on an LCD screen of the IU.

ERP 2.0 IU
  • The ERP 2.0 system is a Global Navigation Satellite System (GNSS) based system, as opposed to the current system with physical gantries located along expressways, as well as roads and arterial roads leading to the CBD.[8] With the new system, the ERP scheme will move towards a distance based charging policy, instead of the current system, where a fixed toll is charged when vehicles pass through a physical ERP gantry.[9] The system also shows real-time traffic information, couponless parking and automatic payment.[9] There will be no need for big gantries when the system starts, with current IU systems replaced by onboard units (OBUs) with one-piece units for motorcycles and three-piece units for other vehicles.
  • Joinly developed by NCS Group and MHI Engine System, the Onboard Unit (OBU) will be rolled out in phases and the installation is slated to be completed by 2025.[14] The OBU will consist of 3 components for all vehicles, except for motorcycles, which will remain a 1 piece unit. The 3 piece units consists of an antenna, processing unit and a touchscreen display. The antenna and touchscreen display will be affixed on the lower right corner of the front windscreen within sight of the driver, while the processing unit is located on the right side of the passenger side footwell for the 3 piece unit. Vehicle owners can choose to not install the touchscreen display, but will be unable to adjust the volume of the OBU, other features such as a future payment system that will be introduced to the OBU, live traffic data and updates, can be accessed via smartphone applications developed with software development kits released by LTA.[14] Road users will be able to use Contactless e-Purse Application Specification (CEPAS) cards, such as the EZ-Link Motoring card, a standard EZ-Link card, as well as NETS FlashPay and Nets Motoring cards which can be inserted into the processing unit. The NETS CashCard will no longer be compatible with the OBU system.
  • LTA announced that the distance-based charging policy will not be implemented in the near future, with no concrete date on when the new policy will take place.[16] The current ERP charges will remain the same, with the OBUs able to work the same as the IUs when passing through a physical ERP gantry.[15] The physical gantries will be removed in phases after the installation of OBUs is completed in all vehicles.


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


ERP 2.0 OBU from 1 Nov 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.


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