SME Association of Malaysia says both countries should scrap VEP fees

Malaysia and Singapore should scrap Vehicle Entry Permit (VEP) fees on both sides of the Causeway, said Malaysia's Small and Medium Enterprises Association President Teh Kee Sin, reported The Straits Times.

The two countries should look at the broader picture instead of engaging in 'tit for tat' action, said Mr. Teh, The Star newspaper reported yesterday. "How can you call yourselves friendly neighbours if you start charging fees for entering each other's houses?" he asked.

More than 5,000 companies are members of the SME Association of Malaysia.

Mr. Teh's comments came after Deputy Transport Minister Abdul Aziz Kaprawi on Saturday said foreign vehicles entering Malaysia from Singapore would be subject to a RM20 (S$7.40) VEP fee from 1^st of August. The fee will apply to vehicles using the Woodlands Causeway and Tuas Second Link.

A spokesman for Singapore's Ministry of Transport said on Saturday, "We will study the Malaysian levy and consider matching it in some form after the details are confirmed."