VEHICLE ENTRY PERMIT FEE FOR MALAYSIAN MOTORCYCLES (Review of increase)

Dr Kanwaljit Soin asked the Minister for Communications if he will review the increase in the vehicle entry permit fee for Malaysian motorcycles in view of the tight labour situation in Singapore.

Mr Mah Bow Tan: Mr Speaker, Sir, the Vehicle Entry Permit (VEP) Scheme was introduced in 1973 to ensure that Malaysian-registered cars and motorcycles pay roughly the same cost as Singapore-registered cars and motorcycles for using our roads. This is only fair because they also occupy road space and contribute to congestion.

VEP fees for cars and motorcycles were revised in October last year because the cost differential between using Malaysian-registered and Singapore-registered vehicles on our roads had widened, due to rising COE prices. The Government will review the VEP fees regularly to ensure that the objective is met, ie, all vehicles, whether local or foreign, are subject to the same costs when used on our roads.

Dr Kanwaljit Soin: Sir, would the Minister agree that although the rationale for the increased VEP for motorcycles is perfectly valid from a land transport policy basis, it may not be valid from our labour shortage point of view because the Malaysian workers who commute daily do not strain the social infrastructure of Singapore, like housing, etc? So would the Minister consider, for motorcyclists who commute daily to Singapore (and I think the figure is 10,000 to 16,000), whether it might be in the interest of Singapore not to look at it purely from a land transport policy point of view?

Mr Mah Bow Tan: Sir, I have explained the rationale why we had the VEP Scheme. I think it would be very difficult for the Government to explain to Singaporean motorcyclists and car owners why they have to pay such high fees for using our roads when the Malaysian motorcyclists and car owners pay very much less. This is the first point. And, secondly, if we do not equalise it, I think there will be other side effects, particularly the temptation for Singaporean motorists to start using Malaysian vehicles. Land transport policy is a major consideration as far as our VEP regulations are concerned. The point that the Member has brought up about the labour situation has to be addressed in other ways and not via this route.

Dr Kanwaljit Soin: Sir, I would like to remind the Minister that I was just referring to motor bikes and not cars. Would the Minister agree that, culturally, the best foreign workers we could have are Malaysians and that, even if we had to go out of our way to make them come and work daily, it would be in our interest? Would the Minister please reconsider the matter and maybe talk with the Minister for Labour and see what sort of compromise one could arrive at because I think this is an important matter for Singapore?

Mr Mah Bow Tan: Sir, I would refer the Member's suggestion to the Minister for Labour.