Private-hire cars bought before Feb 19 can be sold or rented out at lower rates: Chee Hong Tat

New Rules for Ride-Hailing Cars in Singapore

SINGAPORE – Companies that purchased cars for ride-hailing services before February 19, 2025, can resell them to individuals as private cars. This new rule, implemented by the Singaporean government, applies only to cars that are new or newly registered from February 19, 2025.

“All these cars that (the companies) have already bought, assuming that they do have some excess supply, can be sold; or they can find ways to rent them out, such as lowering the rental for drivers,” said Transport Minister Chee Hong Tat on February 22, 2025, on the sidelines of the official opening of the Dyslexia Association of Singapore’s (DAS) Toa Payoh Learning Center.

This new three-year lock-in period aims to prevent businesses from prematurely removing cars from the private-hire market and selling them as used cars. This practice, which was previously unregulated, often resulted in a shortage of cars providing point-to-point transport services.

Before this rule was introduced, companies could freely convert their private-hire cars (PHCs) into passenger cars and sell them in the used car market. Between January 2022 and August 2024, over 1,500 chauffeured PHCs where converted out of the scheme each year within their first three years of registration.

“We don’t wont (the companies) to flip the vehicle in and out of the PHC market.We want it to remain (as one) for at least three years before it is indeed sold as a non-PHC vehicle. This then provides greater stability within the PHC market, which I think will be good for drivers and for commuters,” explained mr. Chee, who is also the Second Minister for Finance.

The Impact on Drivers and Commuters

The new regulation is expected to have a positive impact on both ride-hailing drivers and commuters.

• For Drivers: A more stable market, with fewer cars suddenly leaving the market, could lead to higher demand for drivers and possibly increased earnings.
• For Commuters: A more consistent supply of ride-hailing vehicles should translate into shorter wait times and more reliable transportation.

Beyond Ride-Hailing: Supporting Inclusive Education

The official opening of the Dyslexia Association of Singapore’s (DAS) Toa Payoh Learning Centre provided a platform to highlight another critical issue in Singapore: inclusive education.

Mr. Chee emphasized the meaning of creating a more inclusive education landscape, underscoring the importance of providing support to all learners, irrespective of their learning differences. DAS currently supports over 3,000 children at various educational levels with its bursary fund, which helps alleviate the financial burden on lower-income families.

Looking ahead: The Next General Election

The conversation also touched on the upcoming general election. While no specific details were revealed about candidate selection for Bishan-Toa Payoh GRC, Mr. Chee reassured residents that the PAP team has been consistently engaging with them as 2020 and is prepared for the upcoming elections.

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What are the specific details of the three-year lock-in period for ride-hailing cars, and how will it be enforced?

New rules for Ride-Hailing Cars in singapore: An Interview with transport Minister Chee Hong Tat

Singapore’s Transport Minister Chee Hong Tat recently announced new rules for ride-hailing cars, aiming to provide greater stability to the market and improve transport services. We interviewed Minister Chee to discuss these changes and their expected impacts.

Minister Chee, could you walk us through the new regulations for ride-hailing cars?

Certainly. The new rules introduce a three-year lock-in period for cars purchased by ride-hailing companies. This means companies cannot resell or convert these cars into private cars within the first three years of registration. This is to prevent businesses from prematurely removing cars from the private-hire market and selling them as used cars.

What prompted these changes, and how do you expect them to benefit drivers and commuters?

The previous lack of regulations led to a significant number of ride-hailing cars being converted out of the market within their first three years. This caused shortages and affected drivers’ earnings and commuters’ reliability. The new rules aim to stabilize the market, perhaps leading to higher demand for drivers, increased earnings, and more consistent vehicle supply for commuters.

Looking ahead,how do you envision these changes shaping the ride-hailing industry in Singapore?

Our goal is a more lasting and stable ride-hailing market where drivers and commuters both benefit. We believe these rules will contribute to that by encouraging companies to focus on long-term growth strategies rather than short-term profit maximization through car flipping.

In closing,we’d like to discuss the importance of inclusive education,as highlighted during your visit to the Dyslexia Association of Singapore. How do you see education evolving in Singapore?

Inclusive education is indeed critical. We must ensure that every child, regardless of their learning differences, has access to the support they need.Moving forward,we hope to create a more inclusive education landscape where diverse learning needs are understood and catered to. This will not onyl benefit the individual students but also foster a more accepting and adaptable society as a whole.