JOHOR BARU, June 9 — The Vehicle Entry Permit (VEP) requirement for foreign-registered vehicles entering Malaysia should not deter Singaporeans from visiting Malaysia, according a trade group and residents in Johor.

From October 1, Singapore-registered cars entering Johor via the Causeway and the Second Link will be required to obtain the RM20 VEP.

Muhd Ezaddin Abdul Rahman, a resident of the state, said the VEP enforcement was a long-awaited move from the Malaysian government that he hoped would lead to improved enforcement of traffic laws on foreign vehicles entering the country.

"Personally, I welcome the VEP’s mandatory enforcement for foreign vehicles, especially Singapore-registered cars, that enter Johor on weekends,” said the 41-year-old business owner when met by Malay Mail at a popular 24-hour restaurant here recently.

Johor is a popular destination for Singaporeans due to the proximity and the foreign exchange rate that was advantageous to visitors from the republic.

Singaporeans’ spending is a significant contributor to the state’s economy, but also its traffic, especially during weekends and common public holidays.

South Johor SME Association adviser Teh Kee Sin said he fully supported the implementation of the VEP on foreign-registered vehicles entering Malaysia via Johor, saying that the data obtained through the system could be valuable.

Teh also said the RM20 fee was unlikely to be a deterrent, considering that Singapore imposes a S$35 (RM121) charge for a similar permit on its side.

"I guess our RM20 is adequate and in no way will it burden Singapore car owners as Johor still has space to accommodate foreign vehicles.

"However, as a business-oriented person, I would rather have a Singaporean spend RM200 in local businesses here, which is much better than paying the RM20 VEP charge,” said Teh.

Back in 2015, then Johor menteri besar Datuk Seri Mohamed Khaled Nordin suggested that the RM20 VEP charge would see RM15 going to the federal government, with the remainder to be channelled to the state’s road maintenance.

However, the current breakdown is unclear.

The VEP requirement was initially put in place 2019, but was not enforced due to technical issues. A year later, the Covid-19 pandemic struck and the system was put on hold pending solutions to issues with installing the radio frequency identification (RFID) tag.

Johor resident G. Ganesh, 56, said this meant the VEP could lead to improved road conditions for both Malaysians and the visiting Singaporeans.

"For many Singaporeans, the RM20 fee levied for the VEP is very affordable and I believe that the government’s move to make it mandatory is on the right track.

"Let us not forget that as Malaysians, we also pay a S$35 charge per day in Singapore after our 10 free days per year are used up,” he told Malay Mail, adding that the Malaysian government could make up with the difference by increasing the volume or extending it to motorcycles at an appropriate fee.

However, not all agreed with the RM20 fee. Muhammad Aisamuddin Ismail said the VEP enforcement was timely, but the charge was inadequate to deter excessive casual traffic.

"As the city here and Johor in general develops, especially with the announcement of the Johor-Singapore Special Economic Zone (JS SEZ), there will be an expected growth in Singapore-registered cars entering the state.

"So, there will be an urgent need to regulate the additional traffic,” he said, adding this would be an important consideration for weekends.

"Hopefully the government will have a mechanism in place to increase the VEP charge to meet the current times,” he said.

According to the Transport Ministry, over 200,000 Singapore-registered cars have registered for the VEP, including 70,000 that have activated the system.

Once implemented, foreign-registered vehicles found without a VEP can either be barred from entering Malaysia or leaving.

Johor Baru-based mechanic Yeap Leong Eng said the VEP was unavoidable given the sheer volume of Singaporean cars entering the state since 2022.

Yeap also suggested that the system could prevent Singaporeans dumping their old vehicles here, as the VEP monitored both for entry and exit.

"Several years ago, there were stories of Singaporean cars that were scheduled to be scrapped after the 10-year certificate of entitlement (COE) ends being sold here to local buyers.

"This practice makes used of Malaysia as a dumping ground for these scrapped Singapore-registered cars which is also illegal,” he said.