By Christopher Tan And Janice Tai, The Straits Times, 2 Jul 2014
FOREIGNERS driving into Singapore will have to pay more from next month, the Land Transport Authority (LTA) announced yesterday.
From Aug 1, drivers of foreign-registered cars will have to pay $35 for a daily permit - up from $20 now.
And those driving goods vehicles will have to pay $40 for a monthly permit - four times the $10 charged now.
The LTA said it periodically reviews foreign vehicle permit fees to ensure that the cost of owning and using a foreign-registered vehicle in Singapore corresponds with that of owning and using a Singapore-registered vehicle.
The cost difference has widened in recent years, largely on the back of soaring certificate of entitlement (COE) premiums and additional taxes for premium and luxury cars.
Car drivers say the hike is especially steep because they have to bear the brunt of it every day.
"It's a nightmare," said Malaysian factory worker Ching Kiam Meng, 43, who drives into Singapore six days a week.
"It's a nightmare," said Malaysian factory worker Ching Kiam Meng, 43, who drives into Singapore six days a week.
"It will eat a large chunk of my pay," he said, adding that he draws a monthly salary of $1,500.
With the impending permit increase, he intends to either ride a motorcycle in or car pool with others to defray costs.
Heavy truck driver Rama Perlam is also dreading the change.
"The company intends to just dock the higher fee from our pay," said the 45-year-old, who earns RM90 (S$35) for every trip he makes.
"There's no choice, but luckily, we are not as hard hit as car drivers, as ours is a monthly fee."
The last time charges were changed was in December 2004, when the entry permit for cars was reduced from $30 to $20.
Foreign-registered buses and taxis are exempt from the charges. The charge for motorcycles remains unchanged at $4 per day.
Entry charges are waived for cars and motorcycles on Saturdays, Sundays and Singapore public holidays.
They can also enter Singapore for free between 5pm and 2am every day, and from noon to 2am during the June and December school holidays.
Cars and motorbikes are also granted 10 days of free entry per year.
On average, there are about 50,000 foreign-registered vehicles on Singapore roads every day - up about 40 per cent from 35,000 some 10 years ago.
Two-thirds are motorcycles, with cars, vans and lorries making up the rest.
Driven by need to curb car numbers
By Christopher Tan, The Straits Times, 10 Jul 2014
LAST week, the Land Transport Authority (LTA) announced that foreign-registered vehicles entering Singapore from Aug 1 will be levied higher charges.
By Christopher Tan, The Straits Times, 10 Jul 2014
LAST week, the Land Transport Authority (LTA) announced that foreign-registered vehicles entering Singapore from Aug 1 will be levied higher charges.
The foreign vehicle permit fee for cars will go up from $20 to $35 a day, while the fee for goods vehicles will rise from $10 to $40 a month.
Predictably, the news created quite a bit of hoopla across the Causeway. A lorry operators' association said the hike will hurt its members, and the Malaysian government responded by saying it is considering similar charges on foreign vehicles entering Malaysia.
As always, it helps to have a bit of perspective. To begin, it must be recognised that Singapore is a small island state that needs to have strict control of its vehicle population. It has always been the Government's assertion that the economic cost of a congested city is far higher than the cumulative cost road users bear in the form of costlier vehicles.
Hence it is only fair that foreign vehicles entering Singapore bear the same cost. About 51,000 foreign-registered vehicles enter Singapore a day - 46 per cent more than 10 years ago. Of the lot, about 35,000 are motorcycles, 13,000 are cars and 3,000 are goods vehicles.
As the fee for motorcycles remains unchanged at $4 per day, it is clear that more than two-thirds of Malaysian motorists will not be affected by the foreign vehicle permit adjustment. Those who drive cars will see a sharp increase, but this merely reflects the spike in car prices in Singapore. Owing largely to soaring certificate of entitlement (COE) premiums, car prices have doubled since 2006. Commercial vehicle prices have also climbed sharply.
While the foreign vehicle permit fee for goods vehicles will quadruple, operators should bear in mind that these vehicles are already granted a huge discount - despite taking up much more road space than cars. At $40 a month, the fee for a truck carrying three tonnes of vegetables works out to merely $1.33 per day - one-third the motorcycle fee. So it would be quite unjustifiable for vegetable prices to go up because of the rise in foreign vehicle permit fees.
Similarly, the hike is unlikely to affect the number of Malaysian tourists visiting Singapore. Each car still gets 10 free-entry days a year, free entry on weekends and Singapore public holidays, and free entry from 5pm on weekdays to 2am the next day. As for car drivers who choose to drive regularly into Singapore despite the availability of cross-border public transport, they will just have to stomach the higher cost.
In Singapore, a $120,000 car costs $33 per day over 10 years - excluding related expenses such as insurance, road tax and interest payment on car loan. Of course, should the cost of cars fall in the course of the next few years, the LTA will review the foreign vehicle permit fees accordingly.
The last revision was in 2004, when the fee for cars was reduced from $30 to $20. That was when average COE prices slipped to around $25,000, from $40,000 to $60,000 in the mid-1990s.
There was no reaction from across the Causeway when the cut was announced. Now, Malaysia says it is mulling over a similar permit for foreign vehicles entering the country. Well, let's not mince words. It clearly meant Singapore vehicles. How would it couch such a charge so that it does not come across as a tit-for-tat move? It would be hard. After all, Malaysia has more than 22 million vehicles and a road network of 145,000km. In comparison, Singapore has 970,000 vehicles over 3,400km of roads.
Thus, Malaysia's vehicle density works out to 150 vehicles per kilometre of road, versus Singapore's 285 vehicles per kilometre.
So even if Singapore's entire vehicle population were to descend on Malaysia, it would merely raise its population by 4.4 per cent, and up its density marginally to 158 vehicles per kilometre of road. But if 4.4 per cent of Malaysia's vehicle population crossed into Singapore, it would double the island's vehicle population and raise its density to a gridlock-inducing 570 vehicles per kilometre.
So yes, some perspective is in order. Johor's former Mentri Besar Abdul Ghani Othman put it well when a call was made in 2003 for a levy to be imposed on foreign vehicles that entered Malaysia more than 90 days a year. He rejected it flatly, reminding Malaysia that the 90-day policy was abolished in May 1986 to encourage more visits from Singapore. Indeed, Malaysia stands to lose more in tourism dollars than it would gain in tax revenue from such a levy.
On Singapore's side, this is a good reminder that nerves are easily frayed, even between close neighbours. And perhaps it is yet another reason to review the COE system so as to flatten price fluctuations. Without big fluctuations, there would be no need to adjust the foreign vehicle permit fees.
It would also help if the LTA was more consistent in its messaging. When it cut the rate in 2004, it issued a joint statement with the tourism board saying it was a move to encourage more Malaysian tourists.
It should have stuck to the original idea behind such a charge - that motorists using foreign-registered vehicles should bear the same costs as motorists in Singapore - and not muddy the message with a tourism driver.
Ultimately, Singapore's tight control of its vehicle population will come to naught if it is not accompanied by a policy that restricts the entry of vehicles from another country.
Vehicle entry fee hike to hit firms needing daily supplies
But many that rely on raw materials from Malaysia expect to absorb cost
By Rennie Whang, The Straits Times, 10 Jul 2014
But many that rely on raw materials from Malaysia expect to absorb cost
By Rennie Whang, The Straits Times, 10 Jul 2014
FIRMS here relying on a daily supply of raw materials from Malaysia are expected to be the hardest hit by an imminent hike in vehicle entry permit fees.
Under the increased charges announced by Singapore last week, drivers of foreign registered cars will pay $35 for a daily permit from Aug 1, up from $20 now.
Drivers of goods vehicles will pay $40 for a monthly permit, quadruple the old $10 charge.
Association of Small and Medium Enterprises president Kurt Wee said he expected businesses requiring daily throughput, such as importers of building materials and raw food products, to suffer.
Also exposed are those in components manufacturing, added Mr Victor Tay, chief operating officer of the Singapore Business Federation. Some companies may manufacture components in Malaysia and bring them into Singapore for assembly before re-export through Singapore's ports.
Mr Ricky Kok, founder of Chang Cheng Group, which runs 29 coffee shops here, imports raw food in five trucks from Malaysia daily. "We'll wait to see the effect on our operational costs, and see if there are other areas to save costs in. We'll try our best not to pass the cost increase to customers," he said.
A spokesman for supermarket chain Sheng Siong, which buys goods from Malaysia transported by its suppliers, said it did not expect much impact on its costs.
The higher entry fees may also push up costs for firms making precast construction products. A spokesman for Hong Leong Asia, which has a precast plant in Senai, Johor, and supplies Singapore's construction industry, said the costs of operations and transportation may increase as a result.
A general manager at Sunway Concrete Products, who wanted to be known only as Mr Kwong, said the firm will absorb the cost increase.
It manufactures 30 per cent of its total capacity from its plant in Senai, Johor. All of this is transported to Singapore, with an average of 10 to 12 trips daily, he said.
"Given weak market demand, we won't be able to pass the added costs to contractors or developers. It also doesn't matter to them if you cast in Singapore or Malaysia, as long as you can deliver to the job sites on time," he said.
Mr Kwong said precast selling rates have fallen 12 to 15 per cent since the start of the year.
Cross-border freight forwarding companies also expect to absorb costs.
"Even when the diesel price went up last year, we could not transfer the costs to customers. Business is hard to come by and customers know it," said Mr Chris Sheriidan, managing director of STE Global, which has five trucks.
The director of a local freight forwarder with nine trucks, who wanted to be known only as Mr Goh, said: "It will be challenging. With the labour crunch and foreign worker levy, our operational costs have already shot up by more than 10 per cent this year."
In the construction industry, where about 30 per cent of workers are Malaysian, just a small percentage travel daily.
"Those at managerial level will try to bring their families over. But renovation contractors for Singapore construction companies do tend to travel in and out," said Singapore Contractors Association president Ho Nyok Yong.
A Keppel spokesman said that while it has "quite a number" of Malaysian workers commuting daily to work at its shipyards, the majority do so by motorcycle, for which entry permit fees are unchanged. The company also has buses to transport them from Malaysia to its yards here.
For Malaysian Cash Wee, 28, who drives in from Johor Baru daily, the added cost will be a burden on his roughly $3,000 salary. "Since my family has already bought a house there, it's unlikely I will move to Singapore," said the technical officer at a construction firm here.
Mr Simon James, 33, who lives in Nusajaya, Iskandar, and carpools with a neighbour to his office in Beach Road daily, estimates that he will now have to pay about $50 daily in fees, including bridge tolls and electronic road pricing charges.
"With the new cost, it may even be cheaper to buy a Singapore car. Just the cost of the vehicle entry permit fee over four years would be enough to buy a six- to seven-year old Honda Jazz in Singapore, for example," the financial manager said.
Malaysia mulls over border fee for foreign vehicles
KL to study Johor proposal, following Singapore's fee move
By Yong Yen Nie Malaysia Correspondent In Kuala Lumpur, The Straits Times, 4 Jul 2014
KL to study Johor proposal, following Singapore's fee move
By Yong Yen Nie Malaysia Correspondent In Kuala Lumpur, The Straits Times, 4 Jul 2014
MALAYSIA is considering a proposal to impose a border charge on foreign vehicles entering Johor, just days after Singapore said it would be raising its foreign vehicle entry permit fees from Aug 1.
The Singapore move created an uproar among some Johor businesses, such as lorry operators, and residents who travel to Singapore to work every day.
According to the Malaysian government, 206,136 Malaysians and Malaysian permanent residents passed through the Causeway and Second Link daily last year.
Transport Minister Liow Tiong Lai said the government would have to study Johor's proposal, noting that Malaysia shares a border not just with Singapore.
"This (the proposal by Johor) must be considered carefully as Malaysia has borders not only with Singapore, but also with Thailand, Kalimantan and Brunei," he told reporters on Wednesday.
"This (the proposal by Johor) must be considered carefully as Malaysia has borders not only with Singapore, but also with Thailand, Kalimantan and Brunei," he told reporters on Wednesday.
Local media reported that the Johor state government had in February proposed to the federal government to impose a RM20 (S$7.80) fee on Singapore-registered vehicles entering the state.
Peninsular Malaysia has an overland border with Thailand in the north, while the states of Sarawak and Sabah share borders with Brunei and Indonesia's Kalimantan.
Every day, thousands of cars and goods trucks pass through these borders for trade, work and leisure as it is the cheapest way to commute.
On Tuesday, Singapore announced that the daily entry permit for foreign-registered cars would go up from $20 to $35 from next month. The monthly entry permit for foreign-registered goods vehicles would be raised to $40 from $10.
Foreign-registered buses and taxis are exempt, while the charge for motorcycles remains unchanged at $4 a day.
Johor Sand and Granite Lorry Operators Association president Chia Jee Onn said the higher fee, which will drive up operating costs, will hurt lorry operators as they usually own up to 50 lorries.
"We understand if Singapore is doing this to ease the congestion at Woodlands," he was quoted by Malaysia's Berita Harian as saying. "But if the levy hike is imposed solely in the interests of the Singaporean Government, then it is being unfair to us."
Kluang MP Liew Chin Tong said imposing higher border charges on both sides does not solve the problem.
He said there are trade-offs to consider, such as potentially less tourist dollars for Malaysia and a heavier financial burden on Malaysians who work in Singapore.
"While it is the prerogative of the Malaysian and Singaporean governments to impose charges, the key issue is to make it convenient for commuters without imposing a financial burden," Mr Liew told The Straits Times yesterday. "Both governments should negotiate on how to ease such hassles on both sides."
* Foreign vehicles entering Johor to be charged fee
Implementation date, rates to be set by federal agency: Malaysian PM
Implementation date, rates to be set by federal agency: Malaysian PM
The Straits Times, 17 Jul 2014
JOHOR BARU - Malaysia said yesterday that all non-Malaysian vehicles entering Johor will be charged an entry fee, just over two weeks after Singapore announced it will raise foreign vehicle entry permit fees from Aug 1.
The announcement was made by Prime Minister Najib Razak, who said that the decision came after a request from the state of Johor, which has two land entry points from Singapore, in Woodlands and Tuas.
Malaysia's Road Transport Department, a federal agency, will work out the date of implementation and the rates for the vehicle entry permits, he said after a breaking of fast event in the Johor capital, reported The Star newspaper.
Datuk Seri Najib said a portion of the fees collected would be channelled to the Johor government.
Singapore's decision to hike the fees for vehicles entering from Malaysia had created an uproar, especially among Johor residents who drive to the Republic to work, and among businesses that regularly send goods vehicles over.
Youth and Sports Minister Khairy Jamaluddin had on Tuesday noted that Singaporeans are not charged any fees when they drive into Malaysia, while no action has been taken against those who do not settle their traffic summonses.
"Such action is not fair because they (Singapore) should reduce and not increase the fee from $20 to $35," Bernama news agency quoted him as telling reporters.
"Why don't we, too, collect some revenue from Singapore cars entering Malaysia?"
In his comments yesterday, PM Najib only mentioned new fees for vehicles entering Johor - giving an indication that foreign vehicles entering Malaysia from other neighbouring countries would not be charged the new fees.
Peninsular Malaysia has an overland border with Thailand in the north, while the state of Sarawak in the east shares its border with Brunei.
Both Sarawak and Sabah also share borders with Indonesia's Kalimantan province.
In its July 1 announcement, Singapore's Land Transport Authority (LTA) said from Aug 1, drivers of foreign-registered cars will have to pay $35 for a daily permit, up from $20 now.
And those driving goods vehicles will have to pay $40 for a monthly permit, four times the $10 charged now.
The LTA said it periodically reviews foreign vehicle permit fees to ensure that the cost of owning and using a foreign-registered vehicle in Singapore corresponds with that of owning and using a Singapore-registered vehicle.
The cost difference has widened in recent years, largely on the back of soaring certificate of entitlement (COE) premiums and additional taxes for premium and luxury cars.
On average, there are about 50,000 foreign-registered vehicles on Singapore roads every day - up about 40 per cent from 35,000 some 10 years ago.
Two-thirds are motorcycles, with cars, vans and lorries making up the rest.
JOHOR BORDER FEE
How much would Singapore motorists pay?
RM20: Most say this amount won't deter them much; RM50: Majority say they will cut back on trips
By Kash Cheong, The Straits Times, 18 Jul 2014
How much would Singapore motorists pay?
RM20: Most say this amount won't deter them much; RM50: Majority say they will cut back on trips
By Kash Cheong, The Straits Times, 18 Jul 2014
SINGAPORE motorists, who will have to pay in the future to drive their cars into Johor, said the smaller proposed levy of RM20 (S$7.80) would make only a slight difference to how often they went across the Causeway.
But if the levy were RM50, another proposal, that would be a different matter.
At least one visitor among the 20 polled said she would probably stop going to Malaysia altogether if she had to pay RM50 to get in.
"The hassle of waiting an hour in the jam at immigration is just not worth it," said Mrs Esther Koh, 57, who now goes to Johor Baru twice a month with family or friends to have a meal and buy groceries and petrol.
But for RM20, it is worthwhile, she said, as the savings from the lower prices there add up to more than RM20 each time she goes in.
On Wednesday, Malaysian Prime Minister Najib Razak said his government had agreed to go ahead with a levy on non-Malaysian vehicles entering Johor. He said the decision was made at the request of the state, which would receive a cut of the fees collected.
Most drivers here, however, see it as tit-for-tat to Singapore's move to raise vehicle entry fees for foreign cars from Aug 1. Details on how much Malaysia's new levy would be and when it would start will be announced later.
One possibility is RM20, reportedly suggested by Menteri Besar Mohamed Khaled Nordin of Johor state. "Even with the proposed fee of RM20, it is only around S$7.50 for Singaporeans," Malaysian newspaper The Star quoted Minister in the Prime Minister's Department Wee Ka Siong as saying. "I do not think there is anything for them to worry about compared to the $35 vehicle entry permit charge to be imposed on foreign vehicles entering Singapore starting next month."
Another proposal of RM50 was cited by State Public Works, Rural and Regional Development Committee chairman Hasni Mohammad earlier this month.
About a third of drivers polled here said they would cut back or consolidate their trips, even if the fee were RM20, so as not to accumulate a lot of charges.
Businessman Phil Chia, 44, said he would "consider carefully" if he needs to be in Malaysia for meetings. Now he goes twice a week to talk to suppliers or pick up goods for his signage business. "If they are going to impose this, I will consolidate my business meetings and go in less (often)," he said.
Golfer Ng Kwai Yew, 64, would still go to Tanjong Puteri once a fortnight to play golf if the new levy were just RM20. For RM50, he would think twice. "Maybe I will go in less frequently or when I cannot get a golf game at Singapore clubs," he said.
Echoing many of the 20 motorists, stylist Soh W.S., 55, said the higher amount would make a real impact on his monthly visits to Johor. "If it is RM50, I will greatly lose interest in going in," he said.
Most said they would be more willing to pay the levy for longer holidays in the country but less so for a night out in Johor Baru.
Singapore will raise entry fees for foreign cars from $20 to $35 next month to curb the growing number of foreign-registered cars on Singapore roads. The charges apply from 2am to 5pm on Mondays to Fridays, and 2am to 12pm during school holidays. They are waived on weekends and Singapore public holidays.
Administrator Connie Tan, 32, who goes to JB twice a month for leisure trips, hopes for the same latitude on the other side. "I hope Malaysia waives its fees on weekends. That is when most Singaporeans go in and spend money after all," she said.
Administrator Connie Tan, 32, who goes to JB twice a month for leisure trips, hopes for the same latitude on the other side. "I hope Malaysia waives its fees on weekends. That is when most Singaporeans go in and spend money after all," she said.
Transport Ministry 'concerned' Johor targeting Singapore motorists
By David Ee, The Straits Times, 19 Jul 2014
By David Ee, The Straits Times, 19 Jul 2014
SINGAPORE'S Ministry of Transport has expressed concern that Malaysia is targeting Singaporean motorists by planning to charge only vehicles entering the country at the state of Johor.
Malaysian Prime Minister Najib Razak said on Wednesday that his government had agreed to go ahead with the introduction of a levy on non-Malaysian vehicles entering the country via Johor at the state's request.
This came after Singapore announced on July 1 that it would raise fees for foreign-registered vehicles entering the Republic.
Peninsular Malaysia has another overland border with Thailand in the north. Its states of Sabah and Sarawak share borders with Brunei and Indonesia.
A Transport Ministry spokesman said in a statement yesterday that Singapore's move to raise fees was "not discriminatory".
Rather, it "serves to equalise the cost of owning and using foreign-registered vehicles on Singapore roads, with that for Singapore-registered vehicles", the difference between which has widened in recent years, he said.
He said Singapore-registered vehicles incur "significantly different costs" such as the Certificate of Entitlement and vehicle taxes.
Based on last year's data, almost nine in 10 foreign-registered cars would not be affected by the fee hike as they enter Singapore between 5pm and 2am or on weekends and public holidays, when the fee is waived, he added.
From Aug 1, the entry fee for foreign-registered cars entering Singapore will be raised from $20 to $35 per day. The fee for foreign-registered goods vehicles will go up from $10 to $40 per month.
The Transport Ministry said that it has contacted its counterparts in Malaysia for details of their proposed entry fee.
According to Malaysian reports, the fee could range from RM20 ($7.80) to RM50 ($19.50), with Johor receiving a cut of fees collected. A final decision will be made later.
Mr Cheong Sing Fatt, 56, a businessman who drives to Johor Baru six to eight times a month for work, said it would "look better" on the Malaysian authorities if they imposed similar fees at all their land borders.
"On the surface, it appears they're targeting only Singaporean vehicles... Of course, as a Singaporean you'd be upset."
JOHOR BARU - Singapore motorists driving into Johor will pay no more than RM50 (S$20), Malaysia's Transport Ministry has said.
Entry levy on Singapore vehicles won't exceed $20: KL official
The Straits Times, 26 Jul 2014
The Straits Times, 26 Jul 2014
The cap on the new Vehicle Entry Permit (VEP) charge for Singapore-registered vehicles is to ensure that the levy does not have an adverse impact on tourist arrivals, Deputy Transport Minister Abdul Aziz Kaprawi told the New Straits Times on Thursday.
"The Economic Council will set an amount which is comfortable for Singaporeans. Singaporeans have been enjoying coming to Johor Baru to shop and buy groceries. We don't want the VEP charge to hinder them from coming to Malaysia," he said.
Malaysia hopes to decide on the VEP levy and implement it by the end of the year, said Datuk Abdul Aziz.
The announcement came after Malaysia's Sin Chew Daily reported on Tuesday that the levy was likely to be not less than RM50. Mr Abdul Aziz was quoted as saying that a fee around that figure would be reasonable as the Singapore dollar is stronger than the Malaysian ringgit.
Malaysia announced on July 16 that all non-Malaysian vehicles entering Johor would be charged an entry fee, just over two weeks after Singapore announced that it would raise foreign VEP fees from Aug 1.
Prime Minister Najib Razak said the decision came after a request from the state of Johor, which has two land entry points from Singapore, in Woodlands and Tuas. Datuk Seri Najib said a portion of the fees collected would be channelled to the Johor government.
The VEP was reportedly introduced due to the high volume of Singapore-registered vehicles travelling to and from Malaysia, the NST reported. The charge would be levied only on Singapore cars for now as Singaporeans had benefited from the facilities in Malaysia over the years, Mr Abdul Aziz told the NST.
Most drivers in Singapore, however, see the levy as a tit-for-tat move in response to the Republic's decision to raise vehicle entry fees for foreign cars from Aug 1. Singapore will increase the fees from $20 to $35 to curb the growing number of foreign-registered cars on its roads.
Singapore's decision had created an uproar, especially among Johor residents who drive to the Republic to work and among businesses that regularly send goods vehicles there.
Malaysia's move to charge the VEP fee also caused unhappiness among Singaporean motorists, some of whom said that they would cut back or consolidate their trips to avoid having to pay too much in entry charges.
Mr Abdul Aziz stressed in the NST report that any decision on the levy would not be made at the expense of the Visit Malaysia Year campaign.
Mr Abdul Aziz stressed in the NST report that any decision on the levy would not be made at the expense of the Visit Malaysia Year campaign.
No comments:
Post a Comment