Do Singaporeans Buy Cars in Malaysia?
Yes, some Singaporeans do buy cars in Malaysia for various reasons, ranging from cost savings to practicality in cross-border travel. While it is not a universal practice, this phenomenon is becoming more common as more Singaporeans seek greater flexibility and lower costs.
Why Do Singaporeans Buy Cars in Malaysia?
Cost Savings: One of the primary reasons Singaporeans opt to purchase cars in Malaysia is cost savings. Cars in Malaysia are generally cheaper due to lower taxes and registration fees. This makes them financially more attractive to potential buyers compared to those in Singapore.
Parking and Storage: Renting a garage or parking space in Johor, across the border, provides a secure storage option for cars when they are not in use. This avoids the high parking fees and inconvenience prevalent in Singapore, especially in busy urban areas.
Cross-Border Travel: Owning a car in Malaysia offers significant advantages for travel within both countries. Many Singaporeans enjoy weekend trips or short getaways to nearby Malaysian destinations, which would otherwise be less convenient from their home country.
Regulations and Permits
While this practice offers several benefits, there are specific regulations and permits required for the use of Malaysian-registered vehicles in Singapore.
Customs Regulations: There are limited entry days for Malaysian-registered cars into Singapore. Typically, a Vehicle Entry Permit (VEP) is required, which can range from a daily fee (approximately $35) to a monthly fee (around $800), and a yearly fee (approximately $9,600) for weekend-free periods.
Vehicle Entry Permit (VEP): The VEP fee is due for every entry into Singapore, and the car can only be driven for up to 14 days in a single entry period. This can be burdensome for more frequent travelers.
The Cheaper and More Practical Option: Weekend Cars
A cost-effective solution for many Singaporeans is to purchase a locally registered Singapore car for weekends. This allows them to drive their own vehicle in Malaysia during working days and bring it back to Singapore for their weekend leisure. This way, they avoid the higher VEP fees and still enjoy the convenience of owning and driving their own car.
Limited Driving Privileges for Foreigners
For Malaysian residents working in Singapore, the situation is different. Due to strict regulations, even on a work permit or Employment Pass, these individuals are typically not allowed to drive a Malaysian-registered car into Singapore. A Vehicle Entry Permit (VEP) is required, with a daily fee of approximately $35 or a monthly fee of about $800, and a yearly fee of around $9,600 for weekend-free periods.
This is further highlighted by a real-life example: a Malaysian colleague of mine, who was still a Singapore Permanent Resident (PR), was given a company car when relocating to Malacca. However, he was barred from driving it into Singapore due to his PR status. This situation highlighted the need for permanent or temporary registration changes to facilitate such cross-border transportation.
The purpose of these regulations is to control the number of vehicles in Singapore and ensure smoother traffic flow and lower congestion. However, it also presents a challenge for those who wish to use both countries’ road systems without the high associated fees.