Malaysia will begin issuing Vehicle Entry Permit (VEP) tags for all foreign-registered vehicles entering the country via the Causeway and the Second Link expressway from the middle of next month, the New Straits Times reports. This will be done in stages, according to transport minister Datuk Seri Liow Tiong Lai.

He said that the tags will be introduced once application tests are completed. “The VEP system will prevent foreign vehicles from being cloned and sold in the country. It will also allow us to prevent vehicles with outstanding summonses from leaving the country,” he said.

The VEP tag is fitted with radio-frequency identification (RFID) technology and will integrate a cashless payment system developed by Touch ‘n Go.

Liow said that the introduction of the cashless payment system was in line with the country’s aspiration to accelerate the creation of a robust and secure digital payment ecosystem. “This will act as a catalyst to promote cashless solutions in Malaysia and create a cultural change as we embark on our continuing drive to developing a Malaysia of tomorrow through digitisation and technology,” he explained.

He added that the ministry is also in the process of introducing the VEP system in phases at the Malaysia-Thailand border as well as the Sabah/Sarawak-Indonesia/Brunei borders.

At the Johor entry point, the VEP was supposed to have begun operating last June, with collection of the VEP charge starting from mid-July, but it was postponed. With the implementation, every foreign-registered vehicle will need to apply for the VEP when entering the country from the two links to Singapore. A processing fee will be levied, and the permit will be valid for five years.

A separate per-entry road charge of RM20, implemented since November 1 last year, is currently being levied on vehicles entering Malaysia from Singapore.