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LTA’s $556 million misstep: Approving an ERP 2.0 device that cannot meet minimum standards of heat tolerance

In a recent parliamentary session, concerns surfaced about the new ERP 2.0 OBU’s design. Despite its bulkiness, Transport Minister Chee Hong Tat did not confirm if it meets the AEC-Q100 heat tolerance standards. The oversight is significant, considering the S$556 million tender for the ERP 2.0 system and the flawless performance of the previous generation’s device for over two decades.



In a recent parliamentary session on Wednesday, Transport Minister Chee Hong Tat responded to growing concerns over the new On-Board Unit (OBU) for the Electronic Road Pricing (ERP 2.0) system, defending the device’s implementation and design.

His explanations, while intended to clarify, only deepened public scepticism about the Land Transport Authority’s (LTA) decision-making process.

The minister highlighted the design’s adaptation to Singapore’s harsh temperatures, citing that car footwells—where part of the OBU is to be installed—experience significantly cooler temperatures than dashboards, which can reach up to 52°C.

The separation of the OBU into three components was, according to Minister Chee, a necessary response to prevent overheating risks associated with a single-piece unit.

However, this decision comes at the cost of increased bulkiness and complexity, moving away from the more compact design of the previous generation’s IU system, which notably faced no such overheating issues.

What’s striking here is the evasion of a critical question posed by Mr Louis Chua, Workesr’ Party MP for Sengkang GRC.

Mr Chua asked whether the new OBU meets the Automotive Electronics Council’s AEC-Q100 standard, a benchmark for reliable operations under thermal stress in automotive environments.

The standard, which Mr Chua refers to, AEC-Q100, is a set of qualification test sequences for integrated circuits developed by the Automotive Electronics Council (AEC), an organization based in the USA that sets qualification standards for the supply of components in the automotive electronics industry. The minimum standard for the heat tolerance of the ambient operating temperature range is set from -40°C to +85°C.

Minister Chee circumvented this direct inquiry, offering assurances of various tests conducted by the LTA without confirming if the device actually meets the AECQ 100 standards. This non-answer was not only unsatisfactory but seemed to imply that the device might indeed fall short of this critical benchmark.

This situation prompts a larger question: How did the LTA approve a design that potentially does not meet established industry standards for heat tolerance?

Given the substantial S$556 million value of the tender awarded for developing the ERP 2.0 system, the apparent oversight is not just a minor error but a significant anomaly. This is especially concerning given that the previous generation’s device performed without these issues for over two decades.

Instead of asking the contractor to go back to the drawing board to address the defects, LTA took the stance of catering to the poor design and defending it despite the various complaints raised by members of the public.

We have previously noted that the design, at least since 2016, had been touted as a one-piece device mounted on the dashboard, with LTA’s former CEO promising a smartphone-sized device. It’s puzzling how this design disappeared into thin air.

The frustration of the community and the response from the ministry has opened a can of worms regarding procurement processes and product acceptance standards within the LTA.

With Singaporeans facing the inconvenience of a bulky and potentially underperforming OBU, one must question the due diligence conducted during the tender and development phases. Let’s also not forget the years of delay from its initial rollout date of 2020.

As much as the government led by the People’s Action Party prides itself on financial prudence and operational efficiency, this episode seems to reflect a departure from those principles. The situation not only challenges the integrity of the ERP 2.0 project but also calls into question the overall governance and oversight mechanisms within Singapore’s transport infrastructure management.

It would be perhaps prudent for an independent review or investigation to be initiated, examining the entire process from tender award to product approval.

Such an investigation should aim to ensure transparency and accountability, prevent future lapses, and restore public confidence in the management of national infrastructure projects.

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need to change? OBU? Perhaps people in charge of whole fisaco? ½ billion dollars results wasted. better to reflect in coming GE. 4 ind. 3 guys got into trouble.1 become president

Useless men not up to task, so why propose? Politics? Policy? KiV? Need to showcase worth of salary?

What is LTA talking about? This ERP 2.0 is custom made, with customer’s specification. LTA is the customer! So did LTA specified that the device is supposed to be installed in the cars?

If the specification was not met, customer has the right to reject, nothing to talk about! When LTA is defending the device. It means that the manufacturer did the right thing, following the specification!, now LTA screwed up and needs to convince taxpayers to pay up!

It seemed that the device is having problem.

They only very proficient in creating world-class things like $8 by-pass surgery and $0 No Blaming Culture excuses.

Miniaturisation, nano technology and compactness must have got lost in the RFQ……..

Now we know why GST must keep increasing – missteps after missteps losing million$.

PAP’s $trillion misstep: Approving 4G ministers that cannot meet minimum standards of almost everything.

If the motorcycle OBU can be compact, in a single unit form factor, and is sun and rain resistant…. the pertinent question would be…. WHY DIDN’T THEY USE THIS FOR THE CARS TOO???!!!!

Again, there is probably very little (or insufficient) beta-site testing of this kayu OBU design by LTA. Since taxpayers’ monies was used to fund its development, LTA should release the beta-testing reports and/or details – many Singaporeans likely have good experiences in product development to maturity in their careers. Let the public have a fair and analytical evaluation if LTA has got it right in this OBU development process. What is CHT afraid of telling us?

Only in Fantasy Island is a whopping $566mils blunder is brushed aside as a “misstep”!
No blame culture breeds such blatant disregard of taxpayers hard-earned money used..

Now we know why Ah Loong needs 3 Coordinating Ministers (while the 1G and 2G required only 1) – to prevent them from “overheating” should they work. But again having 3 components also cannot work well together, hor?

If the OBU doesn’t need to “talk” to a satellite I don’t think the heat would be a problem. For current usage, being able to talk to a satellite is over-specced ie: over “qualified”. This leads to increased cost per unit and by the time LTA finally decides to charge via distance traveled, the current technology in the OBU will be OBSOLETE. Complete WASTE on ALL counts.

Recall during the FAILED push to introduce bicycles and PMDs onto our pathways. LTA just approved any tom-dick-harry PMDs initially to kick-start the initiative. Then PMDs started catching fire, 1-2 persons died (if remember correctly) in house fires. They then realized PMD must have UL certification, which is very COMMON in general electronics/electrical sectors. LTA/AMAP apparently didn’t consult industrial experts, just ya-ya papaya, think they know everything.

Their missteps are always in the $mils!

How about the screen can it withstand the heat inside the car? If the design is not good why keep on pushing through.. still talking about ai smart nation….

This chap would be shaky if he contest an election on his own, without the skirt covering of Ng EH.

Does the pee and pee dare to put him as an anchor in another GRC since he is now a full ministar?

The entire ERP2~OBU/POC was a shit show from beginning to end !!!

Tendered by “one of their own”, tested and trialed and signed off by them and the Minister of Transport and his water carriers, … and paid for by them again, with the peoples monies !!!

And now, … it’s defend, defend and defend an absolute POC, piece of crap !!!

PAP mantra is :Do what I say not say what I do.
PAP motto is : Don’t give me an excuse to give you and excuse.

Ah Chee really terok lah.
Not his shit actually….it was shaft into him!
Guess ah Chee did not see this OBU shit coming his way!
Fat fuck Iswaran was the fucker who did not do his job ,as well as all those high ranking senior servants at LTA.
All these fuckers at LTA should have been FIRED LONG AGO TOGETHER WITH THER EX FAT BOSS!
Like a wise saying goes, if the Boss is boh chup and kelong, don’t expect his subodinates to be any better, both in their behavior and work performance!😆😆😆

More than in the eyes. Cannot be having such huge failure and shortcomings to qualify vendors for such a huge project that cost over half a billion dollars in the initial phase.

Was there any lapses from the ex-Transport Ministar that was involved in this exercise?

So highly paid yet the result is total disaster total failure

Last edited 17 days ago by Singapore Fooled Again n Again

“We have previously noted that the design, at least since 2016, had been touted as a one-piece device mounted on the dashboard, with LTA’s former CEO promising a smartphone-sized device. It’s puzzling how this design disappeared into thin air” Comment: I repeat my stand. The LTA should publish the terms and parameters for OBU2 at the tender stage. We will then see for ourselves if the winning bid failed to comply with these terms and parameters. Importantly, if that were so, why did LTA accept an inferior product? But, did the LTA prepare a watered down version of OBU2 and… Read more »

Not their own money what…so they no care..
Need more $$ just deduct from peasants …raise all kinds of rates , taxes and fees anytime..
SGs are PAPs ATMs…