Debated in Parliament on 9 Sep 2014.
Mr Pritam Singh asked the Minister for Transport whether LTA plans to review its long-standing policy of matching toll charges at the Causeway and Second Link to those set by Malaysia in future; and (b) whether a Whole-of-Government study has been carried out by Singapore to assess the prospect of higher toll charges on Singapore businesses operating
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in the Iskandar zone in Johor.
Mdm Speaker, toll charges at the Causeway and Second Link were introduced by Malaysia in 1998. Our matching policy reflects the shared nature of the two crossings, and ensures a fair distribution of total revenues from the crossings. Without a matching policy, lower toll charges by one side may simply be offset by higher tolls levied by the other side. There is no assurance that toll charges foregone by one side will be translated into lower total charges which benefit motorists.
Hence, in response to Malaysia's Causeway tolls revision on 1 August 2014, we have announced Singapore's intention to match Malaysia's new and increased toll charges in due course.
The Government has limited information on the cost structures and market conditions of Singapore businesses operating in the Iskandar zone in Johor. But clearly, there will be some impact on their costs.
In this regard, we note reports in the Malaysian media that the Malaysian authorities will review the tolls. Should Malaysia reduce or do away with the toll charges, Singapore will follow suit. This would be welcomed, I think, by both Singapore and Malaysia businesses on both sides of the Causeway.
Mdm Speaker, I would like to thank the Senior Minister of State for that very helpful clarification. I have three supplementary questions for the Senior Minister of State. First, did the Malaysian government forewarn Singapore of their intention to raise toll charges at the Causeway on 1 August, and have there been any joint discussions about this round of toll hikes since 1 August so as to manage costs for Singaporeans and Malaysians travelling to and fro both countries?
The second question is: did the Singapore Government inform its Malaysian counterparts when it planned to increase VEP charges in July this year, and if not, does it plan to do so going forward?
Finally, in view of the close relationship between Singapore and Malaysia, especially between the Prime Ministers in recent years, has the Government suggested to the Malaysian authorities to consider tagging the additional toll from 1 August along the Eastern Dispersal Link rather than at the Customs, Immigration and Quarantine (CIQ), so as not to penalise drivers who do not use the Eastern Dispersal Link and only travel into Johor Bahru
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city?
Mdm Speaker, the answer to the Member's first question is no. We were not informed in advance of Malaysia's intention to increase the tolls at the Causeway on 1 August. The answer to his second question is yes. We informed our Malaysian counterparts in advance why there is a need to revise the VEP fees. As I have explained in my answer to the earlier Parliamentary Question on VEP fees, it is really because the cost of owning a Singapore-registered vehicle and using it on Singapore roads has risen, whereas the similar cost for a foreign-registered vehicle had largely remained unchanged. And so, yes, our Malaysian counterparts were aware of the intention to raise our VEP fees.
We very much would like our Malaysian counterparts to come to the discussion table and look at what are the better ways of managing this issue of the Causeway tolls so as not to penalise drivers who do not use the Eastern Dispersal Link. Our long-standing policy is well known to our Malaysian counterparts, and that means if the Causeway tolls levied by the Malaysian side were to be reduced or removed, we would do likewise.
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