OBU Installation Cost vs Daily ERP Penalty
ERP 2.0 OBU installation costs S$262.25 for motorcycles and S$420.30 for cars (all-inclusive with GST). From 1 January 2027, vehicles without an OBU pay S$3/day (motorcycles) or S$10/day (cars). At 20 crossings per month, motorcycles save S$720/year and cars save S$2,400/year by installing. The subsidized OBU device rate of S$158.70 expires 31 December 2026. Installation available at our LTA-authorized workshop at AMK Autopoint, Singapore. Book at obuinstall.com or WhatsApp +65 9789 8985.
From 1 January 2027, Malaysian vehicles entering Singapore without an ERP 2.0 OBU will pay a flat-rate daily charge. Here's exactly how much you'll pay with and without an OBU — and how quickly the one-time installation pays for itself.
The Math: Install Once vs Pay Every Day
🏍 Motorcycle Scenario (20 crossings/month)
WITHOUT OBU
S$3/day × 20 days = S$60/month = S$720/year
WITH OBU
S$262.25 one-time installation — done forever
Year 1 savings: S$457.75 | Year 2+: S$720/year saved
⏱ Break-even: 4.4 months
🚗 Car Scenario (20 crossings/month)
WITHOUT OBU
S$10/day × 20 days = S$200/month = S$2,400/year
WITH OBU
S$420.30 one-time installation — done forever
Year 1 savings: S$1,979.70 | Year 2+: S$2,400/year saved
⏱ Break-even: 2.1 months
Subsidized OBU Price — Expires 31 December 2026
The OBU device is currently available at a subsidized rate of S$158.70 (including GST) for foreign-registered vehicles. This subsidized rate expires on 31 December 2026. After that date, the device price may increase, making your total installation cost higher. Installing now locks in the subsidized price.
VEP Fee Increases — Also Starting January 2027
Cost FAQ
What's the cheapest way to get an OBU installed?
Install before 31 December 2026 to get the subsidized OBU device rate. The all-inclusive cost is S$262.25 for motorcycles and S$420.30 for cars. After the subsidy expires, prices may increase.
What if I only enter Singapore a few times a month?
Even at 5 crossings per month, a motorcycle pays S$15/month (S$180/year) without an OBU. The S$262.25 installation still pays for itself within 18 months. For cars at 5 crossings: S$50/month (S$600/year) — break-even in under 9 months.
Are there any recurring fees after OBU installation?
No. The OBU installation is a one-time cost. After installation, you pay only the actual ERP tolls based on your usage — the same as any Singapore-registered vehicle. No monthly subscription or maintenance fees.
Can I pay in instalments?
Currently, the full amount is payable at the workshop. Cash and card are accepted. There is no instalment plan.
What if I sell my vehicle?
The OBU is registered to your vehicle permanently. If you sell the vehicle, the OBU stays with it. The new owner does not need to reinstall.