In the middle of last year, we talked about Malaysia imposing a Road Charge (RC) and Vehicle Entry Permit (VEP) for all foreign vehicles entering Malaysia via the Malaysia-Singapore border in Johor. The VEP, which has a five-year validity period, will come with a Radio Frequency Identification (RFID) tag containing relevant information on the driver and vehicle, and will have to be displayed on the windscreen so that it can be detected by the readers placed at the border and deduct the appropriate fees.
A little over a year in, the VEP program is now about to be expanded to the Thai border up north as well. According to a report by The Edge Markets, all foreign-registered vehicles entering Malaysia from Singapore and Thailand will have to apply for a VEP. At both borders, foreign vehicles will also to pay the RM20 Road Charge. The Malaysian Minister of Transport, Liow Tiong Lai noted that this new system will be in place either this year or early next year.
At the same time, the minister also said that the government is considering rolling out the VEP and RC fees to the Brunei and Indonesian Kalimantan borders in Sarawak at a later stage.
According to the Malaysia Chronicle, Minister Liow Tiong Lai reiterated that the VEP will allow them to monitor and identify the number of foreign vehicles entering Malaysia, as well as prevent car theft and car cloning, which is becoming a real problem here.
In 2016, when the VEP and RC for Singapore was announced, Singapore responded by implementing their own VEP for non-Singaporean registered vehicles entering Singapore from Malaysia. They indicated that they will remove the charge once Malaysia imposes the VEP at all their borders instead of just the Johor-Singapore border, which they implied was unfair and biased.