JOHOR BARU: With Singapore set to raise Vehicle Entry Permit (VEP) fees from January 1 next year, many Malaysians are re-evaluating cross-border travel as costs climb.
Currently, foreign-registered cars and motorcycles entering Singapore pay S$35 (RM109) and S$4 (RM12.50) per day respectively. This will increase to S$50 (RM156.20) for cars and S$7 (RM21.80) for motorcycles from 2027.
The changes will also affect goods transport across the Causeway and Second Link, with Goods Vehicle Permit (GVP) fees rising from S$40 (RM124) to S$70 (RM217) per calendar month.
Motorists now enjoy 10 free VEP days annually and are exempted if they enter Singapore after 5pm and exit by 2am the next day. Both concessions will be scrapped next year.
According to Singapore’s Land Transport Authority, the revised VEP charges will apply on all days except weekends and Singapore public holidays.
A Johorean, who wanted to be known only as Ng, 37, said he plans to cut down on non-essential trips to Singapore due to the higher charges.
“I usually drive into Singapore every week to pick up and send my wife, mother-in-law and aunt, who work and stay there during the week. Driving is more comfortable since there are three of them.
“I’m disappointed that the 10 free VEP days will be removed, as I sometimes enter Singapore on weekdays to run errands. I will avoid weekday trips unless absolutely necessary to save costs,” said the financial planner.
He pointed out an imbalance in charges, noting that Singapore motorists entering Malaysia pay only RM20 for the Malaysian VEP.
Another traveller, Sam Chia, 35, said she plans to switch to public transport, particularly the Rapid Transit System (RTS) Link, when it begins operations next year.
“I go to Singapore occasionally to visit relatives and friends. I just hope RTS tickets will be affordable,” said the content creator.
For daily commuters like IT officer K. Prabakaran, 35, the increase will significantly add to monthly expenses.
“I ride a motorcycle to work daily and currently spend about S$80 (RM250) a month on VEP fees. This will rise to S$140 (RM437) next year,” he said.
He said commuters also face additional costs linked to the On-Board Unit (OBU), introduced under Singapore’s next-generation Electronic Road Pricing (ERP) system.
“The installation for Malaysian motorcycles costs more than S$200 (RM624),” he said.
The logistics sector is also expected to feel the impact, said Johor Trucking Association president Chai Pei Yoon.
“It is Singapore’s policy and we have no choice but to comply. I believe this will affect the local logistics industry and may indirectly affect the price of goods and services,” she said.
Chai added that the industry is already grappling with rising diesel prices, cash flow constraints and policy changes, and the higher GVP fees will further squeeze margins.
While the OBU is not mandatory for foreign-registered vehicles, she said operators may choose to install it to avoid flat-rate ERP charges of S$10 (RM31.20) per day, which could amount to nearly RM1,000 a month per truck.
She said the association has advised its members to consider installing the device despite the high upfront cost of S$158.70 (RM496), excluding a 9% goods and services tax, with installation fees of about S$240 (RM750).
