Singapore is currently undergoing a substantial technological transformation in its road pricing framework, which involves the replacement of the traditional In-vehicle Unit (IU) with the advanced (although controversial and arguable) On-Board Unit (OBU). This transition is a core component of the move towards the next-generation Electronic Road Pricing (ERP) system, known as ERP 2.0, which is based on the Global Navigation Satellite System (GNSS).
This Drive in Singapore guide first explains the relationship between ERP 2.0 and the On-board Unit (OBU), then details the components, features, and installation options of the OBU, and finally answers questions you may have about ERP 2.0 and On-Board Unit (OBU).
About ERP 2.0 and On-Board Unit (OBU)
The existing gantry-based Electronic Road Pricing (ERP) system has functioned effectively for over 25 years, having been implemented in 1998. It will soon (but the date has not been announced) be superseded by the advanced Global Navigation Satellite System (GNSS)-based ERP 2.0 system, which aims to enhance the efficiency and precision of road pricing mechanisms.
In conjunction with this transition to the ERP 2.0 system, it is imperative that all vehicles registered in Singapore replace their current In-Vehicle Units (IUs) with the newly developed On-Board Units (OBUs). Upon installation, this transition will occur seamlessly; users will not experience any changes in the manner in which they are charged for ERP or parking fees.
In a nutshell, ERP 2.0 needs the car’s real-time position. The OBU is responsible for gathering and transmitting this information.
There will be no requirement to modify any existing arrangements linked to the IU, such as season parking permits. This ensures that while adopting the new technology, you can maintain the current arrangements without disruption, thereby facilitating a straightforward and efficient upgrade process.
Components of the On-Board Unit (OBU)
The new OBU is a three-piece design, comprising:
- a Processing Unit,
- an Antenna Unit, and
- a Touchscreen Display.
The touchscreen display unit is not available on motorcycles, and it is optional for cars.
1. The Processing Unit: The Brains of the Operation
The Processing Unit is the core component of the OBU, acting as its central “brain.” It houses the primary computing power required for the ERP 2.0 system to function.
The main functions of the Processing unit include:
- Data processing and calculation: The processing unit is responsible for all critical calculations, including the vehicle’s position, distance travelled on priced roads, and the corresponding ERP charges. It processes the data received from the Antenna Unit to determine the accurate fees.
- Payment facilitation: This unit contains a slot for a CEPAS (Contactless e-Purse Application) card, such as NETS FlashPay, NETS Motoring Card, or EZ-Link Motoring Card, to handle all payment-related transactions. The unit also supports backend payment options, where charges are billed directly to a user’s registered credit or debit card.
- Secure communications: The Processing Unit manages secure communication channels, ensuring that all data transmitted and received is encrypted and protected.
- Heat dissipation design: One of the key reasons for a separate processing unit is to mitigate the effects of heat. By installing it away from direct sunlight, typically in the front passenger footwell, the electronic components are protected from the high temperatures often experienced in a vehicle’s cabin, ensuring long-term reliability.
- Firmware and software updates: The unit is designed to receive over-the-air (OTA) updates for its firmware and software, allowing for future enhancements and new features without requiring a physical visit to a service centre.
2. The Antenna Unit: The communication hub
The Antenna Unit is the OBU’s primary link to the outside world, responsible for sending and receiving signals that are crucial for the system’s operation.
The Antenna Unit offers the following functionalities:
- GNSS receiver: Its most critical function is to receive signals from multiple GNSS constellations (like GPS, GLONASS, Galileo, and Beidou). This allows for precise and reliable tracking of the vehicle’s location in real-time, which is fundamental to the distance-based charging model of ERP 2.0.
- 4G connectivity: The antenna is equipped with a dedicated 4G mobile network connection. This enables two-way communication with the LTA’s central system for the transmission of charging data, traffic information, and receiving real-time updates and alerts. This connection is secured to maintain data integrity and privacy.
- Legacy system compatibility: To ensure a smooth transition, the Antenna Unit also incorporates a legacy antenna compatible with the existing Electronic Road Pricing (ERP) and parking gantries that use Radio-Frequency Identification (RFID) technology. This ensures continued functionality at carparks and older ERP gantries during the transition period.
It is required that the Antenna Unit must be mounted on the vehicle’s windscreen near the A-pillar to ensure an unobstructed “view” of the sky for optimal satellite signal reception and clear communication with roadside infrastructure.
3. The Touchscreen Display: The User Interface
The Touchscreen Display serves as the primary interface for the driver to interact with and receive information from the ERP 2.0 system. While this component is optional for cars (and unavailable for motorcycles), it is recommended for accessing the full suite of features. Motorists who opt out can use compatible smartphone applications to receive essential information.
The touchscreen display unit offers the following functionalities:
- Real-time information display: The display provides drivers with a wealth of real-time information, including:
- Current ERP charges being incurred.
- The balance on the inserted CEPAS card.
- Notifications for upcoming priced zones.
- Real-time traffic updates, such as information on congestion and accidents.
- Alerts for school zones, silver zones, bus lanes, and speed cameras.
- User interaction and controls: The touchscreen allows drivers to manage certain settings, such as adjusting the volume of audio alerts. A key feature is the ability to temporarily deactivate the CEPAS card with a button on the display, which is useful when using complimentary parking coupons, thus eliminating the need to physically remove the card from the Processing Unit.
- Safety features: To minimize driver distraction, the interactive functions of the touchscreen are disabled when the vehicle is in motion. Only essential information is displayed, ensuring that the driver’s focus remains on the road.
Together, these three components form a robust and sophisticated system that underpins Singapore’s move towards a more intelligent and flexible road pricing system, paving the way for future advancements in traffic management and smart city initiatives.
Installation of the On-Board Unit (OBU)
The installation of the OBU is being carried out in phases and is free of charge for all eligible vehicles during their designated installation period. It is planned that the installation will be finished by the end of 2026. All new vehicles have the OBU installed directly before handing over to the owner.
There are four steps in the installation of the OBU.
Step 1. Notification and Scheduling
Vehicle owners will be notified by the Land Transport Authority (LTA) via letter, email, or SMS when it is their turn to install the OBU. This notification will include a timeframe within which the installation should be completed to enjoy the free service.
Since 2024, it is NOT necessary to wait for the letter. You can book the installation appointment with any authorized workshop without LTA’s notification.
Step 2: Booking an Appointment:
Upon receiving the notification, vehicle owners can book an installation appointment directly with any of the LTA-authorised workshops.
A list of these workshops is available on the LTA’s OneMotoring website.
If you have received the notification, your appointment must be before the last day specified. Otherwise, you have to pay for the installation, which will be compulsory.
Step 3: Installation
The installation process typically takes a few hours. So you can arrange the installation with the routine maintenance if the workshop is authorized to install the OBU.
During the appointment, technicians will:
- Discuss the placement of the OBU components with the vehicle owner. The processing unit is commonly installed in the front passenger footwell, but other locations can be considered based on the technical feasibility of the car model and the owner’s preference.
- Remove the old IU.
- Install the antenna on the windscreen.
- Install the optional touchscreen display if the owner chooses to have one.
Step 4. Opting for a Mobile Application
Vehicle owners who prefer a minimalist setup can opt out of installing the touchscreen display. Instead, they can use a compatible mobile application (ERP 2.0 on the Play Store or App Store) on their smartphones to view ERP-related information. The app connects to the OBU via Bluetooth.
Questions and Answers about ERP 2.0 and On-Board Unit (OBU)
Here are answers to some frequently asked questions about ERP 2.0 and the On-Board Unit (unit).
Q1: What is ERP 2.0 and how does it differ from the current system?
ERP 2.0 is Singapore’s next-generation Electronic Road Pricing system, which is based on Global Navigation Satellite System (GNSS) technology. The current system, implemented in 1998, is gantry-based.
In a nutshell, ERP 2.0 utilizes real-time vehicle positioning and history for its charging model. While the current system charges only when the vechile pass the gantry.
Q2. Will the OBU track my car whenever I drive the car?
Technically, the On-Board Unit (OBU) can track the location (and therefore the distance driven and the speed) of the car once the engine starts.
The government has not rolled out the pricing details in ERP 2.0. So, it is unclear how the data will be used and how privacy will be protected.
Q3. Can I opt out of the OBU?
No, OBU is compulsory for vehicles registered in Singapore.
Q4. Will there be a cost for the OBU installation?
No, the OBU installation is free for all eligible vehicles during their designated installation period. This free installation is planned to be completed by the end of 2026. The exception is vehicles due for mandatory deregistration (e.g., those on 5-year COE or vehicles reaching their statutory life) during the OBU installation exercise.
For new vehicles, the OBU is installed directly before being handed over to the owner.
If a vehicle owner does not get the OBU installed within the specified timeframe after notification, they may have to pay for the installation.
Q5. Can I choose the installation location for the Antenna Unit?
No, the Antenna Unit must be mounted on the vehicle’s windscreen near the A-pillar. You cannot choose the location. You can only choose installation locations for the Processing Unit. Display Unit is optional.
Q6. Can I install the Processing Unit anywhere in the car?
You can choose the installation location for the Processing Unit inside the cabin (not in the boot). But it must be approved by the workshop.
Normally, the workshop lets you choose a few locations depending on the car model and your preference.
Q7. Can I use the ERP 2.0 app if I have the Display Unit installed?
Yes, you can link your OBU with the app with or without the Display Unit. But if the Display Unit functions well, you may not need the app currently.
Q8. How will ERP 2.0 affect the Singapore car market?
ERP 2.0 affects the cost of car usage. Because there are no details on ERP 2.0 pricing model, it is hard to gauge its impact on car market.
COE, not ERP, is usually one of the dominant factors of the cost of owning a car in Singapore.
Q9. Do I need to reapply or update my season parking, which is tagged with the IU number, after installing OBU?
No, you do not need to reapply or update your season parking when switching from an IU to an OBU (On-Board Unit) for ERP 2.0. As the OBU number will be the same as the IU number, details such as season parking information will be ported over automatically.
Q10. Can I continue to use old CashCard (chip based)?
No, old CashCards with microchips cannot be used in the OBU. In fact, by the end of 2025, all such CashCards will have expired.
Do you have any questions about ERP 2.0 On-Board Unit (OBU)?
Please let us know your questions or thoughts on ERP 2.0 and On-Board Unit (OBU) in the comment box below
For questions on buying a car in Singapore, please check the Singapore car ownership guides page.
For questions on driving a car in Singapore, please check Singapore driving guides page.
For maintaining and servicing your car in Singapore, please check the Singapore car maintenance guides page.
For driving from Singapore to Malaysia, please check Dring to Malaysia guides page.
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