Singapore and Johor Set To Increase Entry Fees

JOHOR BARU: Consumers can expect a hike in the delivery charges by local freight forwarding companies to Singapore following the city-state’s decision to increase the Vehicle Goods Vehicle Permit (GVP) fee next month.

Federation of Malaysia Freight Forwarders (FMFF) president Alvin Chua said forwarding companies would not absorb the fee hike.

“The huge increase will have a significant impact on our members’ operating costs,” he said, adding that the additional cost of S$30 (RM77) would be added to the overall transportation fee next month. FMFF has about 1,100 members nationwide.

He said local companies exporting their goods to Singapore, however, could opt to revise their rates by striking a deal with companies in Singapore.

“I think it is fair that we charge it back to them (Singapore companies) as the increase in the GVP fees was imposed by their government.”

On Tuesday, Singapore’s Land Transport Authority had announced that effective Aug 1, the GVP fee would be raised by 300 per cent from S$10 (RM25.70) to S$40 (RM102.80) a month while the Vehicle Entry Permit (VEP) fee by more than 50 per cent from S$20 (RM51.40) to S$35 (RM90) a day.

With the hike, operators of more than 3,000 lorries entering Singapore via both checkpoints in Johor will have to spend a total of S$1.44 million (RM3.7 million) a year for the GVP fee alone.

However, the hike will not affect buses, taxis or foreign-registered motorcycles, which are charged at S$4 (RM10.28) per day.

Johor Sand and Granite Lorry Operators Association president Chia Jee Onn said the hike would have affect customers as the operating cost would also be raised.

“Customers can expect lorry operators to increase their charges because the GVP fee hike is significant. We can’t absorb such a high increase.”

He estimated more than 3,000 lorries from Malaysia entering Singapore daily to deliver all sorts of goods, from granite and building materials to electronic goods and finished products from factories.

“We have yet to calculate how much the (operating) cost would increase. We need about two weeks to get the response from our members.”

On Tuesday night, Johor Menteri Besar Datuk Seri Mohamed Khaled Nordin had said all parties must respect and accept the decision by the Singapore government.

He said the state government had submitted a proposal to the federal government for the introduction of a charge to every Singapore-registered vehicle entering Johor Baru through the Causeway or the Second Link Highway five months ago.

It was proposed that an entry charge of RM20 is imposed, of which RM5 is for road maintenance purposes.

“We are still waiting for a decision. We hope the federal government will expedite the decision on this,” said Khaled, while dismissing that it was a retaliatory move by the state government.

In Sepang, Transport Minister Datuk Seri Liow Tiong Lai said the Johor government’s proposal would be considered and a thorough study done.

“It is not something that could be implemented immediately as Malaysia has many entry points.

“The proposal must be studied carefully and properly especially on the implementation method.”
Source: New Straits Times