Transport Minister Datuk Seri Liow Tiong Lai said Malaysia may be forced to begin charging a daily Vehicle Entry Permit (VEP) fee of SGD35 (RM109) on foreign vehicles entering the country. This comes following Singapore’s plan to increase its reciprocal road charge (RRC) on foreign-registered cars entering the republic to SGD6.40 (RM20) on February 15, mirroring Malaysia’s newly-implemented road charge.

Currently, foreign-registered vehicles entering Singapore are required to pay a road charge, daily VEP fees, toll charges and fixed Electronic Road Pricing (ERP) fees upon departure at either the Tuas or Woodlands Checkpoints. Those who evade or fail to do so can be slapped with a fine or face jail time.

Liow told Oriental News Daily that Malaysia’s decision to impose the RM20 road charge on foreign-registered vehicles entering Malaysia in November last year was reasonable as Malaysia did not respond to Singapore’s implementation of the VEP fee in 1973.

“If they (Singapore) insist on it (imposing the RRC) and do not reconsider their decision, we may be forced to implement the VEP policy practised by Singapore,” Liow was quoted as saying. He added that the higher RRC will burden Malaysians but acknowledged that the move could be a method of controlling the number of foreign-registered cars driving into the republic.