What is the difference between Singapore's VEP and Malaysia's RC?
Malaysia’s Road Charge is a 24/7 levy imposed on all non-Malaysian-registered cars entering Malaysia on road via Johor. 100% of Singapore-registered cars entering Malaysia on road via Johor will pay the Malaysia Road Charge.
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% do not pay the VEP as they enter Singapore during VEP-free days or hours.
Singapore’s VEP policy, which has been in place since 1973, is meant to equalise the cost of owning and using foreign-registered vehicles in Singapore with that of owning and using Singapore-registered vehicles. It ensures comprehensiveness of our vehicle population control policy - that there is similar restrain 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 is different from that of Malaysia’s Road Charge.
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). However, once the Road Charge is implemented at all of Malaysia’s other land borders, at an equal quantum and on all non-Malaysian-registered cars, we will remove our RRC.
Do Singapore-registered cars have to pay the VEP?
No, the VEP is levied only on foreign-registered cars. Singapore-registered cars are also not subjected to the Reciprocal Road Charge.