President of Volvo Buses Hakan Agnevall said the vehicle was an important step towards the vision of a cleaner, safer and smarter city.
Data from the trials will be used to improve the technology before the driverless buses are put to the test on public roads, Volvo and the NTU said in a statement.
The vehicle is 12m in length with a full capacity of close to 80 passengers.
It uses 80 percent less energy than a diesel bus of a similar size and is equipped with sensors and navigation controls managed by an artificial intelligence system.
The world’s first driverless taxis went into operation in a limited public trial in Singapore in 2016.