The Ministry of Transport, Land Transport Authority and Singapore Police Force said on Tuesday 8 September 2026 that deregistered vehicles spotted on patrol from this month will be wheel-clamped for LTA seizure, as Parliament took a First Reading of the Land Transport and Related Matters (No. 2) Bill.
Why the clamp starts now
Reported cases of deregistered vehicles on Singapore roads rose from 75 in 2024 to 245 in 2025, after 40 cases in 2022 and 39 in 2023. LTA investigated 122 cases in the first five months of 2026. The agencies say such vehicles are illegal to use: they lack valid insurance and may not be roadworthy. Some have been linked to hit-and-run accidents and other crime, including drug trafficking.
From September, LTA and SPF officers who find a deregistered vehicle on patrol can wheel-clamp it so LTA can seize it later. That lets officers move on to other duties instead of waiting at the scene for the tow. Joint roadblocks and hotspot patrols are also being stepped up.
What the Bill would change
Minister of State for Transport Baey Yam Keng introduced the Bill for First Reading on 8 September. It proposes an Authorised Exporter Scheme so deregistered vehicles leave Singapore only through LTA-authorised exporters, with at least a one-year industry transition. Authorised exporters would store vehicles and run export work such as cutting and packing inside LTA-approved secured premises.
The Bill would also cut the disposal grace period from one month to 14 days. Owners who fail to submit proof of disposal could face a daily fine of up to S$500 until they do. Sale or supply of a deregistered vehicle for use on Singapore roads would be an offence where the seller knows, or is reckless as to whether, the vehicle will be kept or used here, with a fine of up to S$20,000 and/or jail of up to two years, doubled for repeat offenders.
Who faces tighter registration rules
People assessed as high risk of failing to dispose of deregistered vehicles, including juveniles under 18 and those with a prior record of keeping such vehicles, would be restricted from registering new or unused vehicles. Once the exporter scheme is live, owners would hand vehicles to authorised exporters, scrapyards or export processing zone operators instead of filing disposal documents with LTA themselves.
Penalties for keeping or using deregistered vehicles were already raised from 27 February 2026 to a maximum of S$20,000 and/or two years’ jail for a first offence, with double for repeat offenders. The September clamp is the ground enforcement step that sits beside the new Bill while the legislative measures move through Parliament.
