Singapore's Review of Vehicle Entry Permit and Toll Charges for Foreign-registered Vehicles

84 Mr Ang Wei Neng asked Minister for Transport in light of the announcement by the Malaysian Government to impose a vehicle entry permit (VEP) fee on top of the road charge currently imposed on foreign-registered vehicles entering Malaysia from Singapore, whether the Ministry will review the VEP fee and toll charges for foreign-registered vehicles entering Singapore.

Mr Khaw Boon Wan: Although Malaysia's Vehicle Entry Permit (VEP) shares the same name as Singapore's VEP, they serve different purposes. Singapore’s VEP fee is to equalise the cost of owning and using a Malaysia-registered vehicle in Singapore with that of a Singapore-registered vehicle. Malaysia’s VEP fee, on the other hand, appears to be intended to recover the cost of radio-frequency identification (RFID) cards from users of foreign vehicles entering Malaysia. Malaysia has also announced that it will implement the VEP fee at the Causeway, the Second Link and the Malaysia-Thailand borders from end-2017, and at the Malaysia-Brunei and Malaysia-Indonesia borders in 2018.

There are no plans to introduce a reciprocal charge for now. We will monitor Malaysia’s implementation of VEP.