Ministry of Transport expresses 'concern' over planned Malaysia levy on Singapore vehicles

[UPDATE on Friday, 18 July: Adding response from Singapore transport ministry to Malaysia's move to impose entry fees]

Singapore's Ministry of Transport has expressed concern over Malaysia's decision to levy an entry fee on Singapore-registered vehicles entering Johor, which came about two weeks after Singapore's own announcement to hike its vehicle entry permit fees for foreign cars.

Earlier this month, Singapore's Land Transport Authority (LTA) announced it would be hiking vehicle entry fees for foreign-registered cars from $20 to $35 per day, and quadrupling goods vehicle fees from $10 to $40 per month come August, in order to balance the costs that locally-registered vehicle owners bear for vehicles in Singapore.

The news was greeted with opposition and concern by Malaysian drivers and lorry associations, who said it would greatly impact Malaysians who travel to and from Singapore frequently for work.

On Thursday, Malaysia's government okayed the implementation of its own vehicle entry permit system for Singapore-registered vehicles entering Johor by the end of this year, with deputy transport minister Aziz Kaprawi saying it was due to the "high volume of Singapore-registered cars commuting to and from Malaysia".

The levy, which has yet to be decided, will be implemented at the Johor-Singapore Causeway, as well as the Malaysia-Singapore Second Link, reported the New Straits Times.

Malaysia's public accounts committee chairman Nur Jazlan Mohamed stressed, however, that their government does "not wish for this move to be misinterpreted as a counter-measure to the fee imposed by Singapore".
 
Previously, the LTA said in a statement that buses, taxis and motorcycles will not be affected by the hike.
 
Also, all vehicles still do not have to pay fees to enter Singapore on weekends, public holidays and between 5pm and 2am on other days, with these hours extended to between 12 noon and 2am during the June and December school holidays in Singapore.
 
Further, while owners of foreign-registered goods vehicles can still purchase permits at the existing $10 monthly fee this month, any permit that holds validity beyond July will be charged at $40 per calendar month.
 
“The cost difference (between owning and using a foreign-registered vehicle as opposed to a Singapore-registered one) has widened in recent years, giving rise to the need to revise the (fees),” the agency said.