BATU PAHAT: FOREIGN vehicles entering Johor from Singapore will be charged a Vehicle Entry Permit (VEP) fee of RM20 from the middle of next year.
Deputy Transport Minister Datuk Abdul Aziz Kaprawi said the move was made in line with Prime Minister Datuk Seri Najib Razak’s announcement in July on the implementation of the VEP for foreign-registered vehicles entering the country via Johor.
“The Transport Ministry is working out the details of the VEP implementation at the two entry points in Johor, the Causeway and the Second Link, before it is enforced.”
Aziz said initially, the government had slated the implementation of VEP to take place next month.
“However, it has been postponed to the middle of next year, as preparations need to be done, including the installation of special devices at the two entry points,” he said after the groundbreaking ceremony of SRJK (C) Hwa Naan’s multipurpose hall in Parit Imam here yesterday.
Aziz, who is also Sri Gading member of parliament, said the Transport Ministry wanted to ensure that every detail and procedure was looked into so that there would be no problems.
He said the implementation of VEP at the borders with Thailand and Brunei would be announced once the roll-out in Johor was completed and running smoothly.
He said the government would decide on the VEP rates for vehicles from the two countries.
Johor Indian Business Association president P. Sivakumar said the VEP fee of RM20 was fair.
“For Singaporean tourists and shoppers, the RM20 will not have a huge impact as Johor has much to offer in terms of goods and services.”
However, Sivakumar said he was worried that the Singaporean authorities would reciprocate the imposition of the fee by increasing its VEP for Malaysian motorists.
Sivakumar hoped that both governments could come to an understanding to avoid a “tit-for-tat“ situation, which would affect businesses on both sides of the Causeway.
“I hope our government will give consideration to Singaporeans who support Malaysian businesses and also live in Johor.
“The government should look into ways to help them, as they are not tourists or shoppers who enter Johor once or twice a week.”
Small and Medium Enterprises (SME) Association of Malaysia president Teh Kee Sin agreed that the proposed VEP fee was fair.
“I don’t think Singaporean motorists will be bothered, as it is not a large amount for them.”
However, Teh said the association was against fees that would hinder trade between both countries.
“In today’s globalised world, both countries should realise the need for less restricted movement to encourage economic growth.
“Fees that are seen as barriers to business will hamper free trade and the Asean Economic Community from achieving its objectives next year.”
Singaporean businessman Rizal Jasni also agreed that the RM20 fee would not be a burden if a motorist from the island republic entered Johor only two to three times a week.
“But Singaporeans living in Johor Baru and who travel daily to Singapore will be affected.”
He said the fee for a Singapore-registered car entering Johor via the Causeway was RM16.
“With the imposition of the VEP, it would go up to RM36 per entry.
“This will bring additional costs for Singaporeans living in Johor Baru,” said Rizal, who is based in Singapore but has business interests in Malaysia.