Update on Next-generation ERP System

Mr Saktiandi Supaat asked the Minister for Transport (a) whether the next-generation electronic road pricing (ERP) system is an open-source app-based device; (b) how will LTA allocate slots for installation of on-board units (OBU) to minimise queueing; (c) whether there is any replacement cost should the OBU get faulty after usage; and (d) in light of safety concerns about how the OBU's screen may be distracting to drivers, whether there can be an option to dim or turn off the display.

Mr Dennis Tan Lip Fong asked the Minister for Transport (a) whether LTA will reduce the size and improve the design of the on-board units (OBUs) for all classes of vehicles for the next-generation ERP system to ensure safe use, avoid distraction to motorists and better interfacing with the vehicular dashboards and systems; and (b) whether LTA will assure Singaporeans that the price of the OBUs will be kept low and affordable.

Thank you, Sir. Sir, Members have raised a few questions commonly asked by the public on the next-generation Electronic Road Pricing, or nexgen ERP system. Let me assure Members that in designing the system, LTA has carefully thought through these issues.

The first question is why not process ERP payments using our smartphones? After all, we use it to pay all kinds of transactions, including charges at HDB and URA carparks.

Technically, while this can be done, there will be many security and operational issues.

LTA consulted an inter-agency committee including the Cyber Security Agency of Singapore, who advised that the core charging transactions and ERP data must be safely and securely processed with high assurance. The on-board units or OBUs, which is an integral part of the ERP system, have been designed to uphold the necessary protection for such purpose, and the security features are superior to that of a mobile phone. Hence, to better protect the system which contains the data of all motorists, we adopted the OBUs.

There are also operational issues. Motorists need to remember to bring their smartphones, ensure it is sufficiently charged, is connected to the cellular network and the ERP payment app is launched throughout the journey. There will bound to be numerous unintended failed transactions and inconveniences caused. Hence, LTA concluded that it is better to process payments through a dedicated and integrated OBU, similar to today’s in-vehicle unit or IU.

The second question is about the design of the OBU. Sir, at this juncture, may I have your permission to show the OBU and IU units.

Thank you, Sir. So, if you compare, the OBU for motorcycles is only slightly larger than the current IU. The dimensions: for the current OBU is 14 cm x 8 cm x 5 cm versus the current IU which is 13 cm x 8 cm x 4 cm; so 1 cm difference. But I concede it may look a little bulky because of the larger screen – but it is actually good for people like me.

As for the OBUs for other vehicles, unlike for motorcycles, the processing unit will be installed below the dashboard and separated from the display unit on the screen. So, this is the processing unit but it is not going to be on your windscreen. It is actually going to be below the dashboard and it depends on the vehicle model where it will be put, but it will be out of sight. This is the processing unit and you can see that it has got ventilation, because it is actually a little CPU.

The processing unit is separated from the display screen and the antenna – this is necessary because the OBU uses Global Navigation Satellite Technology and is, like I said, really a little computer. There will be safety and reliability issues to leave the processing unit on the dashboard when vehicles with enclosed spaces are parked under the hot sun, similar to how we will not expose our smartphones that same way.

The OBU display unit will be mounted on the windscreen, and, actually, it is only slightly larger than the current IU. So, if Members look at this, it is about 3 cm longer but thinner. The current IU is 12 cm x 8 cm x 3 cm versus the OBU's display screen which is 15 cm x 8 cm x 2 cm.

We are currently consulting the workshops and authorised motor vehicle agents on how best to install this display unit. The antenna is actually very small, so it will be on the windscreen, where your current IU is. But we are looking at how to best install the OBU so that the display unit can be installed in cars such that the blockage of the windscreen is minimal. Actually, this thing can be folded in, so that you will not see it if you do not want to see it. They are looking at how to do this better.

As to what information to show on the display unit, indeed, we will look at how to make sure that whatever information is shown and the way it is shown, it will not be distracting and it will not affect safety.

LTA intends to present a few options to gather public feedback. For example, the display can be kept black most of the time, and only display ERP charges paid when a transaction is effected. As a possible future upgrade, LTA is also studying whether information from the OBU can be pushed to our smartphones, then the smartphones can be used as the display screen instead.

Ms He Ting Ru1 has asked a question for the next Sitting on whether public consultation was done on the design – and we thought it is better we answer the question today. Where possible, our practice is to consult the public, but in this case, LTA faces some practical constraints.

This is a first-of-a-kind project – there is no similar system anywhere else in the world. LTA sought proposals through an international tender. Several designs were submitted, and LTA has to select the best from the point of view of performance, design and value-for-money. But after awarding the tender, LTA is contractually bound.

It could have specified that the winning tenderer has to conduct a major public consultation exercise and make significant changes to the design to take in public feedback, but that will add significant uncertainty which will delay the project and push up the tender prices.

The first OBU will be free of charge for existing Singapore-registered vehicles. For new vehicles, the OBU would already be installed in the vehicle and form part of the overall cost of purchasing a new vehicle, as is the case with the IUs today.

The pricing of OBU is still under consideration and LTA will release more details later including the warranty period of OBUs and information of the installation exercise. In allocating the slots for installation, we will ensure that there are sufficient installation points and give motorists ample notice to make their booking.

Thank you, Mr Speaker. I have two supplementary questions for Senior Minister of State Khor. The first one is, if the concern is around the data protection, because today, under the OneMotoring.sg, all the details about every driver's particulars as well as the vehicle particulars are already available. Can we consider using the legal framework or data protection framework so that there is no concern in terms of information leakage.

The second supplementary question that I have is, because eventually there is a consideration, as Senior Minister of State had pointed out, to push this into the smartphone app, can we bring forward this implementation to make sure that we do not have to put on an additional gadgets on the dashboard or any part of the car frames.

I want to thank the Member for the two supplementary questions. Firstly, with regards to data integrity, data security and protection, indeed, she is right to say that, for the ERP backend system, we will have data to more than some one million or so motorists – specific data. What we are doing is that the core charging function can only be done through the OBU, no third-party apps, not done through the mobile phone, simply because of security reasons and data security as well as reliability.

The OBU interfaces, or speaks directly, to the backend ERP system and is able to access this.

We do not allow third-party apps or mobile phones to do the core charging function because there may be a compromise on the data – leakage, as well as the fact that there could be hacking, spoofing of the location and you can have fraudulent charging. For a system like that, you would want to maintain confidence in the system for our motorists as well as the fact that motorists must be confident that the vehicles' specific data will not be leaked. That is the reason why this is done.

With regards to the second question about whether we can actually bring forward the timeline to look into whether we can allow data to be pushed one way, from the OBU to mobile phone and therefore, allow the mobile phone to replace the OBU display screen. What we want to do is to ensure a smooth implementation of the next-generation ERP system. The current ERP system is already more than 20 years old, it is reaching its end of its operational life and, in fact, is increasingly difficult and actually very expensive to maintain. Some of the parts are not going to be manufactured anymore. So, there is an urgency, a need to implement the nexgen ERP.

We have already announced the timeline, starting from next year, for 18 months to do the installation. So, what we want, is to ensure a smooth installation of the nexgen ERP. To do this, the display unit will be a standard issue. We also need time to work with the contractors and the consultants to come up with the programme to be able to push OBU's specific data to the mobile app. And we will do it to the mobile phone third-party apps via bluetooth. What it means is that, motorists also have to give specific permissions for this to be done, they can then opt to use this mobile phone as the display screen.

Mr Speaker, I thank the Senior Minister of State for her reply or rather her show and tell. I have two supplementary questions. My first question is about the upcoming industry consultations that the LTA has planned, I would like to ask, what is the scope of this consultation and if the LTA is still open to doing a public consultation on the design of the onboard unit – perhaps for future considerations. Like my fellow colleague, Miss Cheryl Chan have said, a lot of vehicles today already have display panels in the vehicle, can we then find a way to connect the OBU with the display that is already in existence in the vehicle.

The second question I have pertains to the costs of embarking on a re-design of the OBU. In June 2019, when there was an online incident of a supposed design leak, LTA then had responded to state that the pictures were just illustrations used for an earlier study back in 2016. On 17 June last year, LTA stated through a Facebook post that the agency was still testing the equipment for the new ERP system, which has not been finalised. However, we also understand from Senior Minister of State's reply today that the LTA is contractually bound to the current OBU design after the tender award and any design changes would have cost implication.

Therefore, I would like to ask the Senior Minister of State, what is the cost of re-designing the OBU at this current stage of the ERP contract and whether it would be more cost-effective to streamline the design now rather than embark on a redesign in the future.

I want to thank the Member for his questions. I think it is useful to clarify these.

Firstly, is with regard to what stage we are at, in terms of public consultation, which we said we will be doing for the installation of the display unit. Let me share that we have started consulting the workshops as well as the authorised motor vehicle agents to look at the installation, how best to do it, to take into account public feedback we have received, with regard for instance, the screen, you know, blocking the road view of the motorists; with regard to it being, you know, quite bulky and so on.

So, this is what we are doing, we need time to work this out with the workshops, as well as the authorised motor vehicle agent, simply because there are so many different designs, make or models of motor vehicles. So, once we have done this, we will share more details on our public consultation with respect to the installation of the display unit.

With regards to changing the OBU design at this stage, well, the fact is as the Member had said, we are contractually bound, so, any significant changes to the design of the OBU, will of course incur cost. Cost is actually subjected to negotiation.

But having said that, we are open to taking feedback from the public, which we have done and we are going to do. One of the things we will do, is with regards to the Graphical User Interface or GUI, what to put on the display screen. LTA, taking into account public feedback, will come up with a few options. Then, we will go out to do a public consultation again, to determine, you know, what are the important information to display with regards to driver safety, distractions and so on and so forth. So, that will be done.

In addition, we will see, as much feedback as possible, we will take into account within the bounds of our contractual obligations as well as the fact that you have to consider for instance, impact on the project timeline, technical viability is another other one, and of course safety requirements. So, the other one which we are doing and which we have taken feedback on, is of course with regard to the use of the mobile phone as a display screen. So, this is something that we are studying and we are looking to push this out. The Member Miss Cheryl Chan had asked if we do it as early as possible. As I have said, we want a smooth implementation of the nexgen ERP, let the system stabilise, we will look at this and then when it is possible, we will be able to offer it to the motorists and they can replace their display units. For new car owners, they can actually opt for that, in future.

Let me thank the Member for her additional supplementary question on this issue again. I do not have the details of the contract, obviously, but I would think that, as with all contracts, there will always be certain specifications that have to be put out. Otherwise, people cannot tender and you need to give contractors or tenderers some amount of certainty.

But within those limits, I am pretty sure and I understand that there is room for some consultation. And in fact, they have done this. As the Member said it was in 2016 that the contract was awarded, it was early 2016. The tender was called in 2014. As I have said it is a first-of-its-kind project, it is an international tender and there is no reference point so we did take a bit of time to look through the various tenders and proposals before we awarded it.

Within that time frame, we had consulted and the contractors themselves have also done some internal consultations as well as even engage, for instance, NTU, to do a study, a human factor study on the GUI features – what to display and so on. I understand that they even had a driver trial experiments to look at the safety of the GUI features. We have also got an inter-Ministry committee that we consulted as I have shared earlier. And in fact, we also did two independent reviews on the features, the security features of the OBU. That is the reason why we have adopted what we have recently shared – that the OBU integrated with the ERP backend system and no third-party apps or use of mobile phone for the core charging functions.

So, indeed, we are mindful that we have to take into account technology improvements and advancements which the contractors would have to do it. But understanding that this is a very, very significant and large project, I think Members will also appreciate why the timeline is actually stretched.