Press Digest - Malaysia mulls tit-for-tat VEP

17 Jan 2017 / 17:54 H.

FOLLOWING Singapore's decision to impose a new Reciprocal Road Charge (RRC) of S$6.40 (RM20) on foreign-registered cars entering the republic, Transport Minister Datuk Seri Liow Tiong Lai said Malaysia may be forced to mirror the island republic by charging a Vehicle Entry Permit (VEP) fee of S$35 (RM109) on foreign vehicles entering Malaysia.
Defending Malaysia's decision to impose the RM20 Road Charge (RC) on foreign-registered vehicles entering Malaysia in November last year, he said it was only reasonable as Malaysia did not reciprocate ever since Singapore imposed the VEP fee in 1973.
On Monday, in announcing the RRC for all foreign-registered cars entering the Woodlands and Tuas checkpoints starting Feb 15, Singapore's Land Transport Authority said it mirrors Malaysia's RC, which was introduced on Nov 1 last year.
"If they (Singapore) insist on it (imposing the RRC) and do not reconsider their decision, we (Malaysia) may be forced to implement the VEP policy practised by Singapore," Liow was quoted by Oriental Daily News as saying in a report today.
Asked to elaborate, Liow pointed out that Singapore Implemented the VEP more than 30 years ago, and when Malaysia implemented RC decades later last year, the island republic deemed it a different matter and wanted to impose the RRC.
He said RRC will be a burden on Malaysians driving into Singapore but "perhaps it is a move by Singapore to control the number of foreign-registered cars going into the republic".
As such, Malaysia will also review measures to regulate entry of foreign-registered cars into Malaysia, he added.

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