It says it is govt practice to peg such fees to those set by Malaysia
By Pearl Lee, The Straits Times, 29 Jul 2014
IF MALAYSIA increases or introduces new tolls at the Causeway, the Singapore Government will follow suit, the Land Transport Authority (LTA) said yesterday, in response to reports that Malaysia is raising charges.
By Pearl Lee, The Straits Times, 29 Jul 2014
IF MALAYSIA increases or introduces new tolls at the Causeway, the Singapore Government will follow suit, the Land Transport Authority (LTA) said yesterday, in response to reports that Malaysia is raising charges.
It has been reported that Malaysia's Works Ministry will increase toll charges for all vehicles except motorcycles entering Johor from Singapore via the Johor Baru Customs, Immigration and Quarantine (CIQ) complex at the Causeway.
Reports also added that Malaysia will impose a new Causeway toll for all outbound vehicles entering Singapore from Johor.
The two changes will reportedly kick in on Friday.
The Singapore Government has not received "any communication" from the Malaysian authorities on the toll changes but has asked them for "official confirmation" of the media reports, said the LTA.
"If there is indeed a new toll, or an increase in toll charges, at the Causeway, the Singapore Government will match the new toll and increase in toll charges in due course," said the LTA in response to media queries.
It has been the Singapore Government's practice to peg tolls at the Causeway and the Second Link to those set by Malaysia, according to the currency exchange rate, it added.
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If the reports are true, drivers of private vehicles going from Singapore to Malaysia via the Causeway would soon have to pay a toll of RM9.70 (S$3.80), more than thrice the RM2.90 now.
Currently, drivers pay RM2.90 to the Malaysian authorities and $1.20 to those in Singapore when they enter Johor from Singapore via the Causeway in Woodlands. But drivers do not have to pay any toll when they go in the other direction and enter Singapore from Johor via the Causeway.
But starting on Friday, drivers will reportedly have to pay a new toll of RM6.80 to enter Singapore from Johor.
In addition, buses will have to pay RM13.30 per two-way trip while taxis will be charged RM8.20 per round trip.
Separately, Malaysia had announced earlier this month that all Singapore-registered vehicles entering Johor will have to pay a proposed entry fee of RM50.
The LTA said it has contacted the Malaysian government for details on this, and is waiting for its reply before responding.
Malaysia's proposed entry fee came after the LTA said it will raise the vehicle entry permit and goods vehicle permit fees for foreign-registered vehicles coming into Singapore.From Friday, drivers of foreign-registered cars will have to pay $35 for a daily permit, up from $20. Drivers of goods vehicles will pay $40 for a monthly permit, four times the $10 now.
Singapore's Ministry of Transport said earlier that the increase in fees was to "equalise" the cost of owning and using foreign-registered vehicles on Singapore roads with that for Singapore-registered vehicles.
For some, hikes may exact a significant toll
By Adrian Lim, My Paper, 30 Jul 2014
By Adrian Lim, My Paper, 30 Jul 2014
WHILE a hike in toll charges on both sides of the Causeway will undoubtedly make that shopping trip to Johor less appealing, the impact may be more widespread.
Singaporean firms which have set up shop across the border to take advantage of lower labour and operating costs may find themselves passing on the new charges to consumers, and property buyers may also take a step back from investing in Iskandar.
The hike will also affect a significant number of Singaporeans who reside in Johor Baru and make the daily cross-border commute for work and school.
Reports suggest that Malaysia's Works Ministry will increase toll charges for all vehicles, except motorcycles, travelling from Singapore to Johor through the Checkpoint at the Causeway.
A new Causeway toll for all vehicles travelling from Johor to Singapore will be implemented alongside the hike. Both will reportedly kick in on Friday.
SLP International research head Nicholas Mak said that while the toll increases in themselves will be a "minor irritation" to Singaporean home investors in Malaysia, the bigger question some may ask is whether there will be more of such policy shifts in the future.
Buying sentiments could be affected, as investors may see the toll hikes as just the "thin end of the wedge" for more policy risks facing foreign buyers of Malaysian properties, Mr Mak added.
Alluding to the 1998 Clob saga, during which Malaysian shares owned by Singaporeans became frozen and illiquid, Mr Mak said such sudden policy shifts can dent investor confidence.
Now the two countries wanted to work together. "And yet it's more expensive to travel between them," he said.
Based on reports, the increase could mean a tripling of the current RM2.90 (S$1.15) to RM9.70 (S$3.80) in toll paid by drivers of private vehicles going from Singapore to Malaysia via the Causeway.
A new toll of RM6.80 will also be levied when returning to Singapore from Johor.
The changes in toll charges are independent of a reported RM50 (S$19.60) Malaysia announced it would impose on all foreign-registered vehicles entering Johor.
Singapore has said that it will match any increase in toll charges or new tolls.
For businesses that depend on cross-border goods movements, the toll increases may mean higher logistics costs that will be passed on to consumers or business customers, said Kurt Wee, president of the Association of Small and Medium Enterprises.
The Iskandar region, often cited as a relocation destination for Singapore firms looking for a cheaper cost environment, may become a "less attractive proposition" now, Mr Wee noted.
He said that there are also many Malaysian businessmen who live in Singapore and they, too, will be affected.
For Singaporean Fahmi Rais, 46, who lives in Johor and commutes across the border daily, the toll increases will dent his disposable income.
Mr Fahmi, who owns a cafe in Johor, said that as travelling between Singapore and Malaysia - whether for work or eduction - has become a "bread and butter" necessity, people will just have to swallow the increase.
The former vice-president of the Johor-Singapore Community Care Association said there may be over 5,000 Singaporean families residing in Johor. They like the lower cost of living. For many, this cost is poised to rise.