KUALA LUMPUR (BERNAMA) - Singapore will remove its Reciprocal Road Charge (RRC) once Malaysia's road charge is implemented at all its borders, including Thailand, Brunei and Indonesia.
The High Commission of the Republic of Singapore said on Friday (Jan 20) that the road charge must also beat an equal quantum and on all non-Malaysian-registered cars.
"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 (Thailand, Brunei and Indonesia), at an equal quantum and on all non-Malaysian-registered cars, we will remove our RRC," it said in the statement via WhatsApp.
According to the 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, with that of owning and using Singapore-registered vehicles.
It said the move was to ensure comprehensiveness of the country's vehicle population control policy that there was similar restrain to using foreign vehicles on Singapore's roads as there was for Singapore vehicles, which were 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.
According to the statement, 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.
"On the contrary, only about one out of 10 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.