Singapore’s Electronic Road Pricing (ERP) 2.0 system, a S$500 million initiative first announced in 2013, is once again in the spotlight as criticism over its rollout, design, and implications intensifies online.
ERP 2.0 is a satellite-based road pricing system intended to replace the current gantry-based ERP infrastructure. It enables distance-based charging and features such as couponless street parking.
Originally scheduled for launch in 2020, the project faced repeated delays due to technical issues and a global microchip shortage.
A phased installation of new On-Board Units (OBUs) began with fleet vehicles in late 2023, with nationwide implementation targeted for completion by end-2025.
However, despite the project’s scale and cost, public reception has been far from positive.
Flawed from the Start?
On 23 March 2025, a Reddit post on r/SingaporeRaw titled “Nobody is talking about ERP 2.0” ignited a wave of critical responses.
Users voiced frustration at the lack of opt-out options, the perceived lack of transparency, and what they viewed as fundamental design flaws.
One Redditor claiming experience with the project’s tender process alleged that problems were embedded from the start.
“The project was doomed to fail the moment it was awarded to NCS. Their proposed design was already outdated back then,” the user wrote.
Despite a budget of S$500 million, many netizens argued that the older ERP system remained more functional.
“They spent $500 million, and the old ERP is still better. What a joke,” the user remarked.
That user also recalled a former vice president’s concerns about the new IU’s limited display and durability during the bid process.
“What kind of IU was that, with just a few single lines on a screen? And who knows, many years later, his words strike bingo.”
Critics pointed to the tender process itself, alleging that government-linked companies often win with the lowest bid, delivering subpar results.
“Welcome to ‘cheaper, better, faster.’ I’ve seen my fair share of rubbish tenders. The final product is always so inferior compared to what private sector proposals could have been.”
Redditors Raise Privacy Concerns and Cost Worries Over ERP 2.0
Concerns extended to the system’s tracking capabilities. ERP 2.0’s distance-based charging means vehicles will be constantly monitored for location and speed via GPS-enabled OBUs.
“Not only about cost. There are also privacy concerns. Now the government can track every vehicle by having OBUs self-report their location and speed back to the Traffic Police,” one user wrote.
They invoked the TraceTogether controversy, where initial privacy promises were later reversed, as a warning of how official assurances can shift over time.
One commenter noted public complacency towards surveillance, especially among older generations.
“Every time this issue of privacy is brought up, you can expect a standard percentage of Singaporeans (usually the boomers and Gen Xers) to come out of the woodwork saying, ‘If you didn’t do anything wrong, you have nothing to fear.’”
Another user asked why an in-car tracking device was even necessary, given that roadside infrastructure already enables traffic monitoring.
“But now they also want to have a tracker (backdoor) that is on all the time, in the privacy of your $100k COE car?”
Beyond privacy, Redditors also voiced concerns over rising living costs.
“The quality of the new OBU aside, this will be another trigger for a cost-of-living increase if they ever turn on distance-based charging,” one said.
Another replied, “It’s not an ‘if.’ They already said it’s going to happen down the road.”
Some users went further, alleging that the ERP system is essentially a tool for revenue extraction.
“They use taxpayers’ money to make more money out of taxpayers. They are laughing to the bank.”
Transport Minister Chee Hong Tat Defends ERP2.0 OBU Design
In response to growing public discontent, Transport Minister Chee Hong Tat addressed the issue in Parliament on 8 May 2024.
He defended the three-piece design of the OBU, explaining that the separation of components was necessary due to Singapore’s high internal vehicle temperatures. Dashboards could reach 50 to 52°C, while footwells remained cooler, reducing the risk of overheating.
Chee added that allowing users to move the processing unit from the passenger to the driver’s side—based on feedback—was a response to ergonomic concerns. Reinstallation for early adopters would be free of charge.
However, his explanation was widely dismissed online as reactive damage control rather than meaningful justification.
“Every excuse now feels like justifying something that should never have been approved in the first place,” one user commented.
Another remarked, “They’re just trying to save face. The system doesn’t serve us—it monitors us and charges us more.”
Chee also rejected using smartphones as substitutes for OBUs, citing security concerns due to two-way data transmission.
He said distance-based charging remains an option under ERP 2.0 but is not yet confirmed. Any implementation would consider its societal impact, especially on professional drivers.
Still, the Minister’s remarks failed to stem the tide of criticism online.
As the ERP 2.0 rollout continues, the gap between government justification and public sentiment appears to be widening.
Whether further revisions can salvage public trust—or if the system’s flaws are indeed baked in—remains to be seen.
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