Use exchange rate to adjust Causeway tolls

Following the increase in Malaysia’s Causeway tolls and the introduction of tolls for vehicles leaving Malaysia, the Land Transport Authority increased toll charges on Oct 1 for all vehicles, except motorcycles, leaving Woodlands Checkpoint and introduced entry tolls.

The LTA advocated clearly its long-standing policy of matching Malaysian toll rates. There appears to be an inconsistency in this policy, though, as toll rates are fixed, regardless of changes in the exchange rate between the two countries’ currencies.

To illustrate, the toll for cars entering Malaysia via the Causeway is RM9.70. The exchange rate was S$1 to RM2.55 in October, and the LTA revised its toll for cars leaving Singapore to S$3.80.

The exchange rate is now S$1 to RM2.69, so the LTA is charging higher than the Malaysian toll rate. Based on the matching policy, Singapore’s exit toll should be S$3.60.

The LTA should do its due diligence to support its policy of matching Malaysian toll rates and adjust its tolls at both the Tuas and Woodlands checkpoints regularly, in accordance with the exchange rate.

This is similar to adjusting Electronic Road Pricing charges based on traffic conditions.