The writing was already on the wall when the government announced back in 2020 that there’ll be a new ERP system implemented in 2023. But plans for a distance-based charging system are still on hold. Just like National Service, rising expenses are national topics that have been on our lips. Whether we like it or not, we still have to figure out a way to tide through them.

With COE premiums always on an uptick these months, we were all hoping for a monumental systemic shift - but any form of optimism would have been quelled given how much (more) revenue the government raked in over the decades. For perspective, COE revenue was S$367 million in 2008, and 2022 saw more than S$2 billion being generated.

With these new, chunkier IU units (or On-Board Unit / OBU), the template is ready and only a matter of time for a distance-based form of taxation. While that sounds tremendously threatening to some (us included), for now let’s focus on what’s in front of us - installation of this new OBU as part of ERP 2.0.

What’s this all about?

Satellite-based Electronic Road Pricing (ERP) system on-board units (OBU) will be progressively installed in vehicles starting on 1 November this year, with the entire process anticipated to wrap up by 2025.

Yikes, but who will be affected first?

Installation of new OBUs will start with roughly 20,000 fleet vehicles, like public buses, fleet motorcycles and taxis. This initial phase will be followed by the installation of OBUs in nearly one million vehicles in total.

Will my car be affected?

From the first quarter of 2024, these devices will be installed on new vehicles. For existing vehicles, the replacement of their current IU units will occur in stages, depending on the age of the vehicle.

We’re sure you have many thoughts, but here are some of the most entertaining we found on the internet!

“My opinion: this is a device to track you.” Ye Ad, Facebook user

OS: Well, this user’s concern echoes many others. But LTA has assured drivers that safeguards are in place to prevent data leaks. It’s certainly possible for LTA to track traffic conditions more efficiently. Still…

“We sure love making things needlessly complicated” Keith Wee, Facebook user

OS: We share similar sentiments, too. Based on the introductory video, it seems like we have to reach down to the processing unit to insert the cash card, instead of a less tedious location next to the A pillar. Safety hazard alert?

“It is a big assumption that people will embrace it… seriously it is so outdated..” always2074, Instagram user

OS: Well, images supplied in September 2020 by LTA showed a strikingly similar 3-piece unit. 3 years on, let’s hope the processing unit’s software matches current expectations.

“Ankle monitor but for cars” martellontherock, Instagram user

OS: There’s a similarity for sure, because these OBUs can operate without physical ERP gantries.

“When our phones can do more than these 3 separate items combined…who approved this?” 6amsam, Instagram user

OS: We agree. Its aesthetics do look like we took a step back in time. Imagine a Tesla fitted with this - that minimalist dashboard will be under serious threat.

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Selling your car? Whatever the reason, caryousell@carousell, sell your car at the highest price today.