Enforcement against use and improper disposal of deregistered vehicles to be strengthened

The Ministry of Transport (MOT), Land Transport Authority (LTA) and Singapore Police Force (SPF) said on Tuesday (Sept 8) that they will strengthen regulations and enforcement against the use and improper disposal of deregistered vehicles.

The new Bill, announced by Minister of State for Transport Baey Yam Keng for a first reading in Parliament on Tuesday, introduced four key measures to strengthen enforcement against the improper disposal of deregistered vehicles.

This comes after the number of reported cases of deregistered vehicles on the road more than tripled from 75 in 2024 to 245 in 2025. 

In the first five months of 2026, LTA investigated 122 cases.

The use of deregistered vehicles is illegal as they do not have valid insurance and may not be roadworthy.

Some of these vehicles have also been allegedly linked to hit-and-run accidents and criminal activities, including drug trafficking, the authorities said.

To strengthen deterrence, the Government had substantially increased the maximum penalties for keeping or using unregistered or deregistered vehicles from Feb 27 this year.

First-time offenders can now be fined up to $20,000 and/or jailed for up to two years. Repeat offenders face double the penalties.

Deregistered vehicles to be exported through authorised exporters

Under the proposed legislation, deregistered vehicles will have to be exported through LTA-authorised exporters under a new Authorised Exporter Scheme.

These exporters will have to meet compliance requirements to ensure that the vehicles are properly disposed of.

For instance, authorised exporters will be required to store deregistered vehicles and conduct export-related activities, such as cutting and packing, within LTA-approved and secured premises.

The authority will provide the industry with a transition period of at least one year before the scheme takes effect.

The Bill will also shorten the grace period for owners to fulfil disposal requirements from one month to 14 days.

Once the Authorised Exporter Scheme is implemented, vehicle owners will only need to hand their deregistered vehicles over to authorised exporters, authorised scrapyards or authorised export processing zone operators. 

They will no longer have to submit disposal documents to LTA.

Daily fines for offenders who fail to dispose of vehicles

The proposed legislation will also ensure that offenders remain liable for prosecution if they fail to fulfil their disposal requirements.

Those convicted of failing to submit proof that their deregistered vehicles have been disposed of can be fined up to $500 per day until they submit proof of disposal.

Moreover, individuals who are assessed to be at high risk of failing to dispose of deregistered vehicles will be restricted from registering new or unused vehicles. 

This includes juveniles under 18, who may be vulnerable to exploitation by criminal syndicates, as well as individuals with a previous record of keeping deregistered vehicles.

The Bill will further criminalise the sale or supply of deregistered vehicles where the seller knows, or is reckless as to whether, the vehicles will be kept or used on Singapore roads.

Those convicted can be fined up to $20,000 and/or jailed for up to two years, with penalties doubled for repeat offenders.

Wheel clamping and more enforcement operations from September

Ground enforcement against deregistered vehicles will also be stepped up.

From this month, deregistered vehicles detected during LTA and SPF patrols will be wheel-clamped for seizure by LTA.

The move will allow SPF and LTA officers to continue with other duties instead of remaining at the scene while waiting for the vehicle to be seized.

Authorities will also conduct more joint enforcement operations, including roadblocks and patrols at identified hotspots.

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asyiqin.nadzri@asiaone.com