By road
Singapore is linked by two land crossings to Peninsular Malaysia:
The Causeway is a very popular and thus terminally congested entry point connecting Woodlands in the north of Singapore directly into the heart of Johor Bahru. While congestion isn't as bad as it once was, the Causeway is still jam-packed on Friday evenings (towards Malaysia) and Sunday evenings (towards Singapore). The Causeway can be crossed by bus, train, taxi or car, but it is no longer feasible to cross on foot after Malaysia shifted their customs and immigration complex 2 km inland.
A second crossing between Malaysia and Singapore, known as the Second Link, has been built between Tuas in western Singapore and Tanjung Kupang in the western part of Johor state. Much faster and less congested than the Causeway, it is used by some of the luxury bus services to Kuala Lumpur and is strongly recommended if you have your own car. There is only one infrequent bus across the Second Link, and only Malaysian "limousine" taxis are allowed to cross it (and charge RM150 and up for the privilege). Walking across is also not allowed, not that there would be any practical means to continue the journey from either end if you did.
Driving into Singapore with a foreign-registered car is rather complicated and expensive; see the Land Transport Authority's Driving Into & Out of Singapore guide for the administrative details. Peninsular Malaysia-registered cars need to show that they have valid road tax and Malaysian insurance coverage. Other foreign cars need a Vehicle Registration Certificate, Customs Document (Carnet), Vehicle Insurance purchased from a Singapore-based insurance company and an International Circulation Permit. All foreign registered cars and motorcycles can be driven in Singapore for a maximum of 10 days in each calendar year without paying Vehicle Entry Permit (VEP) fees, but after the 10 free days have been utilised, you will need to pay a VEP fee of up to $20/day.
Go through immigration first and get your passport stamped. Then follow the Red Lane to buy the AutoPass ($10) from the LTA office. At the parking area, an LTA officer will verify your car, road tax and insurance cover note and issue you a small chit of paper which you take to the LTA counter to buy your AutoPass and rent an In-vehicle Unit (IU) for road pricing charges (or opt to pay a flat $5/day fee instead). Once that is done, proceed to customs where you will have to open the boot for inspection. After that, you are free to go anywhere in Singapore. Any VEP fees, road pricing charges and tolls will be deducted from your AutoPass when you exit Singapore. This is done by slotting the AutoPass into the reader at the immigration counter while you get your passport stamped.
Driving into Malaysia from Singapore is relatively uncomplicated, although small tolls are charged for both crossing and (for the Second Link) the adjoining expressway. In addition, Singapore-registered vehicles are required to have their fuel tanks at least 3/4 full before leaving Singapore. Do be sure to change some ringgit before crossing, as Singapore dollars are accepted only at the unfavorable rate of 1:1.
In both directions, note that rental cars will frequently ban or charge extra for crossing the border.
-Courtesy of wikitravel, information as accurate as publishing date-
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