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Singapore to raise VEP charges for foreign vehicles from 2027

Entry fee for cars to rise to about RM175 a day as free concessions scrapped

12:11 PM MYT

 

KUALA LUMPUR – Singapore will raise its Vehicle Entry Permit (VEP) fees for foreign-registered vehicles from January 1, 2027, with charges for cars increasing to S$50 per day (about RM175), and motorcycles to S$7 per day, or roughly RM25.

According to Bernama, the Land Transport Authority (LTA) said on Friday that the revised fees are higher than the current rates of S$35 (about RM123) per day for cars and S$4 (about RM14) per day for motorcycles.

Under the new framework, the VEP will apply on all days except weekends and Singapore public holidays. Existing concessions, including 10 free VEP days annually and free VEP hours on weekdays, will be removed.

In a separate move, LTA said the Goods Vehicle Permit (GVP) fee for foreign-registered goods vehicles will increase from S$40 to S$70 per calendar month, equivalent to about RM245.

Owners of foreign-registered goods vehicles may continue to purchase the GVP at the current S$40 rate before the new fees take effect. However, permits with validity periods beginning from January 1, 2027 will be charged at the revised rate.

LTA also said foreign motorists will be able to install the new Electronic Road Pricing 2 (ERP2) on-board unit (OBU) from April 1, 2026, ahead of the system’s rollout on Jan 1, 2027. Installation of the OBU will remain optional for most foreign-registered vehicles.

However, Malaysian taxis entering Singapore will be required to install the OBU for tracking and enforcement purposes.

Foreign vehicles without an OBU will be subject to a flat-rate ERP charge of S$3 (about RM11) per day for motorcycles and S$10 (about RM35) per day for all other vehicles on days when ERP is operational.

To encourage early adoption, the cost of the OBU for foreign motorists will be fixed at S$158.70, or about RM555, inclusive of nine per cent Goods and Services Tax, until Dec 31, 2026.

The OBU can only be installed at authorised workshops in Singapore. LTA said further details on installation arrangements for foreign motorists will be announced in due course.– February 7, 2026

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