The Land Transport Authority (LTA) has defended recent changes to the Public Service Vehicle (PSV) permit framework, rejecting claims that the reforms were introduced without consultation.
Chief Executive Officer Irimaia Rokosawa said the Authority engaged key stakeholders, including financial institutions, over several months.
“A series of targeted stakeholder engagements were undertaken… recognising their critical role in the transport sector,” he said.
Consultations were held between September 2024 and March 2025, alongside broader public consultations conducted nationwide.
Mr Rokosawa said feedback received during these sessions helped shape the final policy direction, including the removal of permit transfers through sale and purchase agreements.
“This measure is intended to eliminate the treatment of permits as financial commodities and refocus the sector on service provision,” he said.
The LTA also clarified that financial institutions can still use PSV permits as security under certain conditions.
“PSV permits may still be used as security, subject to prior consent from the Authority,” Mr Rokosawa said.
He added that lenders are allowed to dispose of permits to recover debts, provided approval is obtained to ensure regulatory oversight.
The Authority stressed that the reforms are aimed at restoring balance within the sector.
“These changes are not intended to disadvantage law-abiding permit holders, but rather to ensure permits are managed in a way that prioritises public need and service delivery,” Mr Rokosawa said.
The LTA said it remains committed to ongoing engagement as the new framework is implemented.
