End ‘VEP war’ of levy on cars, says business group

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PETALING JAYA: A business lobby has called for an end to the “VEP war” between Malaysia and Singapore in which a levy is charged on vehicles entering either country.

The Malaysian Indian Commerce Association and the Johor Indians Business Association urged the Malaysian government to match Singapore’s offer of relaxed conditions under the Vehicle Entry Permit scheme.

From tomorrow, Malaysia will impose a road charge of RM20 on each foreign-registered private vehicle entering Malaysia.

MICA president S P Sivakumar said Singapore had offered to allow 10 free days a year, no charge on vehicles at weekends and on public holidays, and VEP exemption for cars entering Johor Bahru between 5pm and 2am on weekdays.

“Malaysia must see the bigger investment picture,” he said and not be penny wise pound foolish.

He said Singapore was the second biggest investor in the Iskandar Malaysia project with a total investment of RM16.64 billion.

He said the efforts of international trade minister Mustapa Mohamed “looks doomed” because of “petty-minded officers messing with the VEP system.”

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