Malaysia Plans to Study VEP Fee Increase for Singapore Vehicles

Posted on Jan 19 2017 - 10:27am by Redwire Singapore

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Singapore vehicles, among other foreign vehicles entering Malaysia, are supposed to pay RM10, or about S$3.30) in VEP to install a radio frequency identification (RFID) electronic chip which is valid for 5 years.

So far, we’ve been let off the hook as Malaysia can’t seem to get its system in order and many vehicles that have been unable to register are still allowed to enter Malaysia – only 144,000 vehicles have registered so far.

But following the announcement that come 1 Feb Singapore will charge Malaysian vehicles a Reciprocal Road Charge of RM20, or S$6.40, to enter Malaysia, it looks like our neighbours might raise their VEP fee levied on our vehicles.

Malaysian authorities are planning to study whether to raise the VEP fee to match the amount charged by Singapore.

Said Malaysian Transport Minister Liow Tiong Lai:

“We will study from time to time if there is a need to increase the amount of the VEP charge.”

Singapore currently charges Malaysian vehicles entering the country S$35 in VEP, in addition to the S$6.40 RRC and checkpoint tolls.

The RRC was implemented, according to the Singapore government, in response to Malaysia’s Road Charge which started in November last year, which requires all foreign vehicles to pay an additional RM20 or S$6.40 in addition to checkpoint tolls.

Commenting on the RRC, Singapore’s Transport Minister Khaw Boon Wan said

“This is to ensure that Malaysia takes into consideration our response whenever they raise their tolls or introduce a new levy.”

 

 

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