LTA has amended the Road Traffic Act to set a hard deadline of 1 January 2027 for all Singapore-registered vehicles to carry an ERP 2 On-Board Unit (OBU), while also raising penalties for tampering and unauthorised OBU services from 27 February 2026.
What happened
Parliament passed amendments to the Road Traffic Act that formalise two things: the mandatory OBU requirement ahead of the full ERP 2 switchover, and a tougher penalty framework for non-compliance. As of 31 January 2026, roughly 930,000 vehicles, or just over 93% of the Singapore fleet, had already been fitted with an OBU at one of more than 300 authorised workshops islandwide. LTA says the installation programme remains on track for completion before the end of 2026.
From 15 February 2026, vehicle owners who received an invitation to install but have not yet acted will get a final reminder. That reminder starts a three-month window during which installation remains free. Once that window closes, the fee becomes $35 for motorcycles and $70 for all other vehicles.
On the penalty side, serious cases of non-installation, tampering, or providing unauthorised OBU services, such as installation, modification, repositioning, removal, or repair by unlicensed parties, now carry fines of up to $20,000, up to 12 months’ imprisonment, or both.
Classic and Vintage Vehicles (CVV) are exempt from the mandatory installation requirement. CVV owners may still opt in for a free OBU, subject to a technical feasibility check at the workshop. Those who do not install will instead pay a flat-rate ERP fee: $3 per operational ERP day for motorcycles, and $10 for all other vehicles.
One further change is the decriminalisation of missed ERP charges from 1 January 2027. Under ERP 2, a failed deduction will be treated as an administrative matter rather than a criminal offence, which could mean a simpler recovery process for drivers who occasionally run low on their IU balance.
What it means
For the roughly 7% of vehicles still without an OBU, the clock is now running in a more concrete way. One read of the final-reminder mechanism is that LTA is giving owners a defined last chance before the free window closes, after which the cost falls on the owner rather than the state. Whether that $70 fee is enough of a nudge to move the remaining holdouts is an open question, but the combination of a paid installation deadline and the looming 1 January 2027 legal requirement could concentrate minds fairly quickly.
The strengthened penalties for unauthorised OBU services are worth noting for workshop operators as well. Any business or individual offering OBU-related work outside the authorised network now faces a significantly higher legal risk. Drivers looking for OBU installation or servicing should confirm that the workshop they approach is on LTA’s authorised list. The Right Workshop’s vehicle servicing page covers what our team can and cannot assist with under the current scheme.
The decriminalisation of missed charges might seem like a minor administrative tweak, but it could matter to drivers who travel frequently through gantries. Under the current IU system, a failed deduction can escalate quickly; the ERP 2 approach may offer a less punitive path to settling outstanding amounts, though the details of the recovery process have not yet been fully published.
What to watch
The immediate priority for any vehicle owner who has not yet received or acted on an OBU invitation is to check their LTA correspondence and book an installation slot before the three-month free window expires. After that point, the $35 or $70 fee applies, and after 1 January 2027, travelling on public roads without an OBU becomes a legal breach rather than just an administrative gap.
LTA has not yet confirmed the exact date by which all invitations will have been issued, so owners of vehicles that have not received a final reminder should not assume they are in the clear. Checking directly with LTA or an authorised workshop is the safer approach. For context on how the broader ERP 2 rollout fits alongside other vehicle ownership costs in Singapore, our COE results tracker keeps a running record of quota premiums and scheme changes that affect the total cost of running a car here.
The next significant date is 27 February 2026, when the enhanced penalties for unauthorised OBU services take effect. After that, 1 January 2027 is the hard line for mandatory OBU fitment across the fleet.
