From 1 January 2027, every Singapore-registered motor vehicle must carry an ERP 2 On-Board Unit to use public roads, the Land Transport Authority said in its 3 February 2026 release.
As of 31 January 2026, about 930,000 vehicles, or more than 93 per cent of the fleet, already had an OBU fitted at one of more than 300 authorised workshops. LTA said the installation exercise is on track to finish in 2026. You do not have to wait for LTA’s letter or SMS to book at go.gov.sg/book-obu.
Free window, then a fee
From 15 February 2026, owners who had been invited but had not installed yet received a final reminder. LTA then allowed three more months of free installation from that reminder date. After that free window, installation costs S$70 for cars and other vehicles and S$35 for motorcycles, before GST, until the unit becomes mandatory on 1 January 2027.
Serious cases of non-installation, tampering or unauthorised OBU services such as installation, manufacture, modification, repositioning, removal, repair or advertising can draw penalties of up to S$20,000 and/or up to 12 months in jail.
Missed ERP charges from 2027
From 1 January 2027, missed ERP charges become an administrative matter rather than a court traffic offence. Vehicle owners, not drivers, settle outstanding charges. Miss the five-day grace period after LTA’s SMS and you pay the charge plus a S$10 administrative fee before LTA will process other transactions.
Unpaid balances can block road tax renewal, PARF and COE rebate use or encashment, vehicle transfers, Off-Peak Car rebate refunds, unused road tax refunds and school-bus road tax rebate refunds.
Classic, vintage and foreign vehicles
Classic and Vintage vehicles stay optional for OBU fitment, subject to workshop feasibility. Without an OBU from 2027, those owners pay a flat ERP day fee of S$10 for cars and other vehicles or S$3 for motorcycles on each ERP operational day. Foreign-registered vehicles without an OBU face the same flat daily rates from 2027. Regular CashCards with a microchip do not work in the OBU; use a CEPAS card such as a NETS Motoring, NETS FlashPay or EZ-Link Motoring card. First free installations still include a complimentary CEPAS-enabled NETS Motoring card while stocks last.
ERP charges are still deducted at physical gantries, with cordon and point-based pricing continuing for now.
