Overcoming the Increase in Toll Rates across the Johor-Singapore Causeway

With the new toll rates charged on Malaysia and Singapore vehicles crossing the Johor-Singapore causeway from 1^st August 2014, more people are paying for higher travel fees, whether for work or leisure purposes. The popular Singapore to Legoland transportation is not spared either. The toll furore began after the Singapore government decided to increase the levy on all foreign-registered vehicles entering the country starting from 1^stAugust onwards, which eventually led Malaysia to increase its toll charges on the interlink causeway.

For now, 13^th August 2014 – The cars tolls payable are RM16.50 (Malaysian end) and SGD1.20 (Singapore end) for a round trip which is an increase of SGD6.40. On top of that, Malaysian cars need to pay a daily vehicle entry permit of SGD35.

In a couple of weeks, some estimated 1^st September 2014 – Singapore shall increase its tolls to SGD6.40 to match the toll amount in Malaysia. Malaysian cars are expected to pay a total of SGD47.80 for a round trip inclusive of foreign vehicle entry levy. This is a hefty sumto pay just to drive across to a neighbouring country!

Impact to Professionals and Workers

The new toll rates would of course affect mainly Malaysian professionals and workers working in Singapore as well as international and Singapore tourists who often travel to Johor Bahru over the weekend.With the new rates effective, public transportations will have to increase ticket prices, companies will have to pay more salaries to their employees, and tourists will have more reasons to consider before travelling across the border. The increase of salaries is a burden for SMEs especially. In fact, some Malaysian employees may have to quit their job in Singapore due to the higher cost of transport and choose to work Johor Bahru.

For Singapore, this will increase its business costs as someof the local companies are dependent on Malaysian workers who cross the border every day. Transportation service providers will have to bear with the raise of the Malaysian toll fees that were increased for taxis, buses, and trucks, with a SGD35 entry permit for all foreign-registered cars.

(Photo courtesy of straitstimes.com)

The consequences are expected to affect food prices too as Singapore is importing 5-10% of its essential foods from Malaysia. In this case of tit for tat, it is the people across both side of causeway who will eventually suffer as they bear the brunt of the spiralling cost.

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