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S’pore will match KL’s moves on Causeway tolls

SINGAPORE — The furore over the Republic’s decision to raise Vehicle Entry Permit (VEP) fees for foreign-registered vehicles entering Singapore took another twist yesterday, with the Government saying it would match any new or increased tolls introduced by Malaysia.

SINGAPORE — The furore over the Republic’s decision to raise Vehicle Entry Permit (VEP) fees for foreign-registered vehicles entering Singapore took another twist yesterday, with the Government saying it would match any new or increased tolls introduced by Malaysia.

This comes after Kuala Lumpur announced over the weekend that it would increase the toll and introduce new ones at the Sultan Iskandar Building checkpoint, which connects to the Causeway, from this Friday. The new tolls come on top of a proposed VEP by Malaysia for foreign vehicles entering Johor, which could be at least RM50 (S$19.50).

In a statement yesterday, a Land Transport Authority (LTA) spokesperson said it has been the Government’s practice to peg Singapore’s tolls to those set by Malaysia at the Causeway and the Second Link.

“The Singapore Government has not received any communication from the Malaysian authorities on this new toll or increase in toll charges, and has requested for official confirmation from the Malaysian government of the media reports,” the spokesperson said.

Currently, cars entering Johor through the Sultan Iskandar checkpoint must pay a one-way charge of RM2.90, and there are no tolls when exiting.

However, the Malaysian Highway Authority has announced that from next month, it will collect tolls from cars entering and exiting at the Sultan Iskandar checkpoint. Cars entering Johor from Singapore for a day trip will have to pay RM16.50 — RM9.70 will be charged when entering and RM6.80 will be charged on the way out. Motorcycle tolls will be revised to RM24.90, more than five times the current fee.

On the Singapore end, cars — foreign and local — leaving the island through Woodlands Checkpoint currently pay S$1.20, while motorcycles are not charged.

Earlier this month, Singapore announced that starting next month, it would raise VEP fees from S$20 to S$35 a day for foreign cars entering the country — the first increase since 1994. Fees for goods vehicles will also be raised from S$10 to S$40 a month.

This triggered an outcry among Malaysians who regularly commute to Singapore for work, and Malaysian Prime Minister Najib Razak later told the media that Kuala Lumpur would implement a VEP fee for all foreign vehicles entering Johor, a decision made following a request from the state. Deputy Transport Minister Abdul Aziz Kaprawi last week told Sin Chew Daily newspaper that the fee would be at least RM50.

Singapore’s Ministry of Transport had asked for more information on the proposed VEP about two weeks ago, saying there was concern about whether Malaysia’s decision was directed towards Singaporean vehicles, as it would apply only in Johor. Yesterday, the LTA spokesperson said it was still waiting for Malaysia’s reply before deciding on its response.

Businesses TODAY spoke to worried about the impact of the impending tolls from both the Singapore and Malaysia ends.

Association of Small and Medium Enterprises president Kurt Wee and Singapore Business Federation chief executive officer Ho Meng Kit said higher tolls would raise business costs. Mr Wee, who described the moves as “tit for tat”, said companies could raise prices to pass on the cost, but that this could drive away customers. He added that the whole episode could dampen interest in locating operations in Johor, while businesses with operations that ply between both sides would probably cut down on trips where possible. “Businesses generally do not like unstable regulations,” he said.

Ms Jasmine Tan, a Malaysian who owns printing and curtains businesses, said she would consider locating some of her business in Singapore, where many of her clients are, despite the higher rental costs. “(The new tolls) will affect us a lot, because we travel (between Singapore and Johor) every day,” she said.

Singapore Member of Parliament for Mountbatten, Mr Lim Biow Chuan, who also sits on the Government Parliamentary Committee (Transport), felt raising the tolls was Malaysia’s prerogative. “Ultimately, it will have economic consequences, in the sense that there will be less traffic flow between the two countries. I suppose Malaysia has to decide whether this is beneficial in the long term, because there are quite a lot of ins and outs between Singapore and Malaysia.”

Mr Ho hopes both sides can sort out the tolls over time. “Malaysia is Singapore’s biggest trading partner. A lot of our trade goes through the land-link between the two countries. Also, with further integration of the two economies, a lot of Singaporeans are going (to Malaysia) to set up factories or buy houses. This will just make it more difficult and costly for that to happen.”

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