Photo of Najib and Lee Hsien Loong from straitstimes

Announced by the Land Transport Authority (LTA) today (Jan 16), all Malaysian and foreign vehicles entering the Tuas or Woodlands checkpoint will have to pay S$6.40 for a new Reciprocal Road Charge (RRC), effective from February 15. This bring the total costs for a Malaysian vehicle to be raised to S$41.40 for cars and S$10.40 for motorcycles, excluding prevailing Electronic Road Pricing (ERP) taxes.

The Singapore government however blame Malaysia for the new toll charge, which increased their road charge by S$6.40 (RM20) in November 2015. Transport Minster Khaw Boon Wan, an ex-Malaysian, claimed that it is “Singapore’s policy to price match any increase”.

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Read: Singapore cars to pay Malaysia entry road charge from today

Due to the two governments raising toll charges, a round trip from Singapore to Malaysia cost S$19.60 for a Singapore-registered cars and S$41.40 for Malaysian cars. The increase is likely to spike up cost of goods and services in Singapore as the island is heavily dependent on Malaysia for food and material import. Singapore manufacturers whose factories are in Malaysia are likely to be the worst-hit by the levy war between the two governments.