MOT concerned about Malaysia’s decision to levy entry fee for foreign vehicles

In response to media queries, a Ministry of Transport (MOT) spokesperson said that there is concern whether Malaysia’s decision to levy an entry fee on foreign-registered vehicles is directed towards Singaporean vehicles, as it was reported that it would only be levied in Johor. The Ministry has contacted its counterparts in Malaysia for details of the fee, and will consider its response after getting them.

The spokesperson also explained that the basis of Singapore’s Vehicle Entry Permit (VEP) and Goods Vehicle Permit (GVP) fees is not discriminatory but serves to equalise the cost of owning and using foreign-registered vehicles on Singapore roads, with that for Singapore-registered vehicles. Singapore-registered vehicles are subject to significantly different costs such as the Certificate of Entitlement (COE) and vehicle taxes, amongst others. In fact, the last time the VEP fee for cars was changed in 2004, it was lowered, largely because of the lower cost of COEs during that period.

The VEP fee for cars and motorcycles was last raised in 1994. In 2004, the VEP fee for cars was lowered. The GVP fee for goods vehicles had remained unchanged at S$10 per month since it was introduced in the 1960s.

MOT explains that as the cost difference in owning and using foreign-registered and Singapore-registered cars and goods vehicles has widened in recent years, this had given rise to the need to revise the VEP fee for cars and the GVP fee for goods vehicles, from S$20 to S$35 a day for the former, and from S$10 to S$40 per month for the latter. The VEP fee for foreign-registered motorcycles remains unchanged.

The ministry also noted that all foreign-registered cars and motorcycles continue to enjoy the following VEP-free days and VEP-free hours:
a) Saturdays, Sundays and Singapore Public Holidays;
b) 10 normal weekdays per calendar year; and
c) Between 5pm and 2am on all other days (these VEP-free hours are extended to start at 12 noon instead of 5pm during the June and December Singapore school holidays).

Which works out to a total of around 125 days per year that are VEP-free on top of the daily VEP-free hours.

About 13,000 foreign-registered cars enter Singapore daily. Based on 2013 data, almost nine in ten foreign-registered cars will not be affected by the VEP fee increase as they enter and stay in Singapore on VEP-free days or during VEP-free hours.

About 8,000 unique foreign goods vehicles enter Singapore every month.

On 16 July, Malaysian Prime Minister Najib Razak confirmed plans to impose a Vehicle Entery Permit (VEP) fee on vehicles entering Johor Baru from Singapore following Singapore’s announcement in July that it would raise its VEP fee for foreign-registered cars to S$35 from S$20 from August.  Details on the exact fee and implementation timeline are still being discussed, but Johor Chief Minister Mohamed Khaled Nordin has previously proposed a levy of RM20 (S$7.80).

  • jack

    Pandai ,Saya Warga Malaysia tinggal di JB ,yang TAK berkerja di Singapore pun akan JUAL KERETA Malaysia akan beli Kereta Plate Singapore……Pasal keluar -masuk tak payah pakai VEP FREE ! kereta Singapore pun murah…depreciation satu tahun baru berapa kalau beli kereta china,proton cuma seribu aje,kereta ,yang berkelas pun Toyota ,honda cuma 4 ribu ,BmW cuma 8 ribu setahun depreciation dia,lepas scrap dapat balik duit !.

    siapa si BODOH kena bayar sehari $50 dollar x 5 hari sehari kalau pakai kereta Malaysia? sebulan dah $1300 dolar.

    Jangan Marah ah !!! Kalau Malaysian helps to Contributes for future much higher COE in Singapore OK !
    I owned 3 condo in Singapore all RENTED all, Many other Malaysian too ,As we Malaysian are biggest investors of Singapore property

    Jangan marah ah !!! kalau JB penuhi berlambak dengan Kereta Plate Singapore dari kereta Malaysia ! pasal kita bodoh sangat ke !

    • GUSSIE91

      aiya……………..please edit your posting in ARABIC.

  • jack

    This not TIT for Tat Story as Claimed ,Singapore introduced VEP since 41 years ago on Malaysian Car ,that time no COE ,the price of CARS in Singapore Dirt Cheap…….YET VEP…therefore they just born SUCKERS

  • jack

    WHY still banned Singaporean from Using Malaysia Cars to drive in Singapore ?While Malaysia never Ban Malaysian Using Singapore cars to drive in Malaysia road!
    Daily VEP charges useless meh ?

    • GUSSIE91

      because………….Singaporean is DAFT.