Johor’s Chief Minister Onn Hafiz Ghazi vowed to “personally address” the complaints arising from the requirement for Singaporeans driving to Johor to have a Vehicle Entry Permit (VEP) and matching tag. Speaking at the National University of Singapore Society (NUSS) 70th Anniversary Lecture 2024 on Wednesday, Sep. 18, Onn Hafiz said he takes the complaint seriously.
Background
A member of the audience, identifying as a “potential investor,” raised concerns about the difficulties Singaporeans have faced in registering their vehicles to enter Johor over the past few months. The VEP requirement, which mandates all vehicles entering Malaysia by land from Singapore to have a permit and RFID tag, has been a source of frustration. The audience member questioned the efficiency of the registration process and its implications for setting up a Special Economic Zone (SEZ) or other investments in Johor.
Painful process
The audience member elaborated on the cumbersome nature of the VEP registration process, describing it as “painful.” He expressed doubts about the smoothness of the transition and the overall feasibility of establishing business operations in Johor if such basic processes were so challenging. “If just registering your vehicle is so painful, what more about setting up a Special Economic Zone (SEZ), or putting a factory down there?” he questioned, adding that even reaching the SEZ would be “painful.”
Onn Hafiz response
Onn Hafiz assured the audience that he would personally address the issue, stating, “You have my word on that.” He highlighted his commitment to improving the situation, noting that he had visited the Customs, Immigration, and Quarantine (CIQ) complex “more than a hundred times.” He emphasised that his priority is to help Johoreans, as over 300,000 people are affected by the delays. Previously, workers had to wake up at 4am to reach their workplaces in Singapore by 8am. However, new measures such as QR codes and facial recognition clearance have allowed them to wake up at 6am, saving two hours daily.
Regarding the ease of movement for Singaporeans going to Johor, Onn Hafiz admitted, “Personally I haven’t done anything yet, but you have my word, your complaint tonight is something that I take seriously and I will address it as soon as I get back to Johor.”
VEP troubles
It is important to note that the VEP requirement is a federal government initiative, not a state one. Malaysia’s transport ministry announced the VEP requirement in May 2024. From Oct. 1, 2024, vehicles without the VEP may be barred from entering Malaysia. The RFID tag, which must be installed, is intended to make it more convenient for motorists to pay the RM20 (S$5.75) toll when entering Johor and charges on Malaysian highways with RFID lanes.
However, Singaporeans have encountered long queues at the centre in Woodlands where the tags can be installed. Appointments must be made weeks in advance. Another option is to collect the tag in Johor or opt for home delivery, although the latter incurs additional costs.
Future implications
The VEP registration issues have broader implications for Johor’s economic prospects. The difficulties faced by Singaporeans in complying with the VEP requirements could deter potential investors and complicate the establishment of business operations in the region. Onn Hafiz’s commitment to addressing these issues is crucial for maintaining Johor’s attractiveness as an investment destination. Future developments will be closely watched to see if the promised improvements materialise and whether they will ease the concerns of both daily commuters and potential investors.
