In a commentary published in Channel NewsAsia, Khor Yu Leng, a political economist with Singapore-based market research firm Segi Enam Advisors, said that the scrapping of the EDL toll, while a seemingly small amount, will certainly be welcomed by all motorists.
She was referring to Prime Minister Najib Razak’s tabling of Budget 2018 at the Dewan Rakyat on Oct 27, where he said four highway tolls will be abolished from Jan 1.
“The scrapping of the EDL toll, while a seemingly small amount, will certainly be welcomed by all motorists,” Khor said, while elaborating on the how the decline in the value of the Malaysian ringgit against the Singapore dollar has added to the volume of traffic between both countries.
“The ringgit’s decline has driven even more to seek jobs in the island state, with many on the daily commute to earn incomes that can be three times higher than if they worked in Johor.”
She added that such motivation even makes these hundreds of thousands of Malaysians willing to endure three to four hours total commuting time both ways.
“This includes additional 60-minute wait times at immigration in recent years.”
Khor also highlighted how the imposition of the Vehicle Entry Permit scheme by the Malaysian authorities for all foreign-registered cars is not expected to slow down the traffic from Singapore car owners.
“One thing is clear, the costs of crossing the border has steadily risen since 2014 with the addition of the EDL toll and the increase in road charges for foreign cars on both sides.
“However, Singapore drivers get used to paying a bit more within a month or two, and things are ‘business as usual’ for those catering to these customers.
“For all the complaints on higher crossing fees and talk about reducing trips, Johor experts report no impact on traffic and mall owners seem to agree,” she said.
Transport Minister Liow Tiong Lai had on Oct 8 this year, announced that the vehicle entry permit (VEP) rule will soon commence for foreign-registered vehicles entering Malaysia.
It is separate to the RM20 that Singaporeans already pay for a road charge.
The VEP will cost RM25, and will be valid for five years. It will be issued with a radio frequency identification tag to be placed on windshields.
According to Khor, 200,000 Singapore cars have already registered for the VEP scheme.