KUALA LUMPUR: Singapore will remove its Reciprocal Road Charge (RRC) once Malaysia's road charge is implemented at all its borders, Singapore High Commission in Kuala Lumpur and the Singapore Consulate-General's office in Johor Baru said in a Facebook post on Friday (Jan 20).
It added that Malaysian road charge must also be at an equal quantum and meted on all non-Malaysian-registered cars.
Malaysia started imposing a RM20 (S$6.40) road charge on all foreign vehicles entering Johor from November last year. Earlier this month, Singapore said it would implement the S$6.40 RRC, following a “long-standing policy” of matching any levy, tolls or fees charged by Malaysia at the land checkpoints.
"As long as Singapore is the only country affected by Malaysia’s Road Charge, we have no choice but to respond with the Reciprocal Road Charge (RRC),” said the Singapore High Commission and Consulate-General in JB.
“However, once the road charge is implemented at all of Malaysia’s other land borders (Thailand, Brunei and Indonesia), at an equal quantum and on all non-Malaysian-registered cars, we will remove our RRC,” they added.
According to their statement, Singapore’s Vehicle Entry Permit (VEP) policy, which has been in place since 1973, was meant to equalise the cost of owning and using foreign-registered vehicles in Singapore.
"It ensures comprehensiveness of our vehicle population control policy - that there is similar restraint to using foreign vehicles on Singapore's roads as there is for Singapore vehicles, which are subject to the Certificate of Entitlement (COE) system and high vehicle taxes."
Hence, the intent of the VEP policy was different from that of Malaysia's road charge, the statement said.
In addition, Malaysia's Road Charge was a 24/7 levy imposed on all non-Malaysian-registered cars entering Malaysia on road via Johor, while 100 per cent of Singapore-registered cars entering Malaysia on road via Johor will pay the Malaysia Road Charge, the statement added.
"On the contrary, only about one out of ten foreign-registered vehicles that enter Singapore pay Singapore’s VEP, and these are mostly driven by those who work in Singapore. The other 90 per cent do not pay the VEP as they enter Singapore during VEP-free days or hours," it said.