What is the difference between Singapore’s Vehicle Entry Permit and Malaysia’s Road Charge?

What is the difference between Singapore’s Vehicle Entry Permit and Malaysia’s Road Charge?

There are fundamental differences.

18 Jan 2017

cars

There are fundamental differences between Singapore’s Vehicle Entry Permit (VEP) and Malaysia’s Road Charge.

Key differences

Malaysia’s Road Charge is a levy imposed on all non-Malaysian-registered cars entering Malaysia via Johor at all times.

Singapore’s VEP, on the other hand, was introduced to equalise the cost of owning and using a foreign-registered car or motorcycle in Singapore, with the cost of owning and using a Singapore-registered car or motorcycle. This is necessary to ensure fairness, as Singapore-registered vehicles are subjected to significantly different costs from foreign-registered vehicles, such as the Certificate of Entitlement (COE) premiums and vehicle taxes.

Concessions are also given under the VEP scheme. All foreign-registered cars and motorcycles enjoy 10 VEP-free weekdays a year. There is also no VEP fee if cars enter and exit Singapore on weekends and Public Holidays, or after work hours (between 5pm to 2am) on weekdays.

Is the Singapore VEP discriminatory?

No, it is applied fairly to all foreign-registered cars and motorcycles and at all vehicle entry points into Singapore. However, the Malaysian Road Charge is levied on Singapore cars. It is not clear when Malaysia will extend its Road Charge to its other borders with Thailand, Brunei or Indonesia.

Why did Singapore introduce the Reciprocal Road Charge?

We have a long-standing policy of matching any levy, tolls or fees charged by Malaysia for using the road links between Singapore and Malaysia.

If Malaysia subsequently withdraws their Road Charge, or implements its Road Charge in a non-discriminatory way, i.e. at all of its land borders, at an equal cost and on all non-Malaysian-registered cars, we will withdraw our Reciprocal Road Charge.

Source: MOT

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