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The government has agreed to impose a vehicle entry permit (VEP) fee on Singaporean vehicles entering Johor, Prime Minister Datuk Seri Najib Tun Razak has announced, according to a Bernama report. He said the decision was made following a request by the state.

"I ask that the [Johor] state government notify the Road Transport Department (JPJ) on when the move can be implemented," he said yesterday. "We will decide on the rates to be imposed. Part of the fee collection will be shared with the Johor government."

According to deputy transport minister Datuk Abdul Aziz Kaprawi, the VEP fee would not apply at border checkpoints in the northern part of the peninsula.

"We are taking a bilateral approach only between Malaysia and Singapore because only Singapore is imposing a VEP charge on Malaysian vehicles and not the other countries," said Abdul Aziz.

According to Bernama, Johor Menteri Besar Datuk Seri Mohamed Khaled Nordin recently said the Johor government suggested a VEP fee of RM20 (RM5 of which would go to the state government for road maintenance) for Singaporean vehicles entering Malaysia via the Johor Causeway and the Second Link.

Earlier this month, Singapore announced an increased VEP fee of S$35 (RM90) from the current S$20 (RM51.50) on foreign vehicles entering the island republic, effective this August 1 - more details here.