JOHOR BARU, July, 8, 2015:

In view of the current economic situation, the Gelang Patah MCA division has urged the government to review the percentage of proceeds from the Vehicle Entry Pass (VEP) fee for foreign-registered vehicles entering Malaysia from Singapore.

The fee collection will start on Aug 1.

Its division chairman, Jason Teoh Sew Hock, said the VEP collection was said to be shared between the state government (getting 25%) and the federal government (getting 75%).

He argued that the percentage breakdown of the VEP’s collection did not favour the Johor government in terms of revenue as it would only translate to RM5 for each vehicle entering any of the two checkpoints in Woodlands and Tuas.

“We feel the amount is too low for the state government, thus the need to review Johor’s portion in view of the current economic situation,” said Teoh to the media at the Johor Baru Chinese Press Club in Jalan Maju here today.

Teoh, who is also the MCA Public Service and Complaints Bureau chief, said that the RM20 VEP fee for foreign-registered vehicles entering Malaysia had caused concern to several quarters, especially Malaysians who have Singapore-registered vehicles.

“The MCA Public Services and Complaints Bureau has received numerous complaints regarding the issue, which we believe will affect the livelihood of those working in Singapore, but on a meagre salary.”

Teoh said the average Malaysian who drives a Singapore-registered vehicle would be spending more than RM500 a month and this was not inclusive of toll, fuels and other expenses.

Aside from the VEP, he said motorists would also need to pay the toll fees at both side of Johor’s two checkpoints (the Second Link and also the Johor Baru city), which would lead to additional expenses.

Teoh suggested that Malaysians driving foreign-registered vehicles be given an exemption for the daily VEP charges, replaced by a monthly season entry pass instead.

“The amount should be at a reasonable rate for Malaysians,” he said, adding that RM200 may a fair price based on his bureau’s feedback on the matter.

Johor’s implementation of the VEP charge of RM20 for every foreign-registered vehicle entering Malaysia from Singapore is expected to start on Aug 1.

Installation of equipment at the checkpoints in Johor Baru city and at the Second Link to facilitate collection of the fee is said to be almost complete.

The proposal to implement VEP was agreed to by both the state and federal governments late last year.

It is the first time that Malaysia is implementing such a charge, starting in Johor.

The government also plans to introduce VEP collection for foreign vehicles entering the country via other entry points in the northern and eastern states.

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