I note that there has been some inaccurate reporting in the Malaysian media on Singapore’s implementation of a Reciprocal Road Charge (RRC) which takes effect on Feb 15, 2017.

I wish to clarify Singapore’s position as follows:

Malaysia’s Road Charge is a 24/7 levy imposed on all non-Malaysian-registered cars entering Malaysia on road via Johor. One hundred percent of Singapore-registered cars entering Malaysia on road via Johor will pay the Malaysia Road Charge.

On the contrary, only about one out of 10 foreign-registered vehicles that enter Singapore pay Singapore’s Vehicle Entry Permit (VEP), and these are mostly driven by those who work in Singapore. The other 90 percent do not pay the VEP as they enter Singapore during VEP-free days or hours.

Singapore’s VEP policy, which has been in place since 1973, is meant to equalise the cost of owning and using foreign-registered vehicles in Singapore with that of owning and using Singapore-registered vehicles.

It ensures comprehensiveness of our vehicle population control policy - that there is similar restrain to using foreign vehicles on Singapore’s roads as there is for Singapore vehicles, which are subject to the Certificate of Entitlement (COE) system and high vehicle taxes.

Hence, the intent of the VEP policy is different from that of Malaysia’s Road Charge.

As long as Singapore is the only country affected by Malaysia’s Road Charge, we have no choice but to respond with the Reciprocal Road Charge (RRC). However, once the Road Charge is implemented at all of Malaysia’s other land borders (Thailand, Brunei and Indonesia), at an equal quantum and on all non-Malaysian-registered cars, we will remove our RRC.

The above information can also be found here.

LOY HUI CHIEN is press officer, High Commission of the Republic of Singapore in Malaysia.