SINGAPORE: All Singapore-registered vehicles on the roads must be fitted with an on-board unit (OBU) from Jan 1, 2027, which is when the country will fully switch to the next-generation ERP system.

Moving the Land Transport and Related Matters Bill for debate on Feb 3, Acting Transport Minister Jeffrey Siow said the OBU will be mandatory as the ERP2 system uses satellite technology, rather than gantries, to determine a vehicle’s location for toll charging.

About 930,000 vehicles - 93 per cent of the total number here - have been fitted with the OBU so far.

The Land Transport Authority (LTA) said it is on track to complete the installation exercise in 2026.

Vehicle owners who have not installed the OBU will get a final reminder from LTA from Feb 15, 2026, and be given three months to do so for free.

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