In 1994, Trans Island Bus Services (TIBS) decided to make a major purchase of Mercedes Benz O405s to replace its older Japanese buses. Unlike the O405s that were purchased by Singapore Bus Services, this batch of buses were the updated Mark II type, featuring the supercharged Mercedes Benz OM447hA engine (11,967cc) and fitted with the 4-speed ZF4HP500 automatic transmission. They were bodied by Hispano Carrocera in Zaragoza, Spain with an exterior design similar to the first-generation DAF SB220. 235 out of all these O405s purchased by TIBS were originally fitted with underfloor air-con from Hispacold.

These buses had a larger Lawo Luminator Europa (now simply known as LAWO) dot-matrix EDS on its front that is to be the standard size for all future TIBS buses. They form the majority of the single-deck buses that were to represent TIBS in the 90s, and they were operated in almost every TIBS/SMRT service. From 2004 to 2011, several Woodlands-based units were also JB-registered to perform the cross-border service 950 to Malaysia. By the end of 2015 only one unit remained in revenue service, and it was withdrawn by September 2016.