Singaporeans who drive into Malaysia will know the drill. You enter Malaysia with as little fuel as you dare risk without getting caught, head over to a restaurant for an inexpensive but mightily satisfying seafood meal and stock up on some household necessities such as milk powder, milo, detergent, toilet paper followed by a car wash and do a full top up of petrol for your car before heading back to Singapore.
Getting all these things done in Johor Bahru allows Singaporeans to save money thanks to our favourable exchange rate. With the Singapore Dollar (SGD) trading at about S$1 = RM3.33 based on the current exchange rate at the point of writing to the Malaysia Ringgit (MYR) (as of 4 September 2024), Singaporeans believe they can get much more value and an enjoyable road trip for their hard-earned money in Malaysia.
However, with the introduction of the RM20 (S$6) road charge for foreign vehicles entering Malaysia from Singapore, the cost to drive into Malaysia for Singapore cars has gone up, thus reducing the amount we can save when we go into Malaysia.
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The Cost To Drive Into Malaysia Today?
Here is the cost to drive into Malaysia for one Singapore car to enter and exit Malaysia.
Singapore Woodlands Check Point (Departure)
S$0.80
Singapore Tuas Check Point (Departure)
S$2.10
Malaysia Check Point (Arrival)
RM20 (~S$6.06)
Malaysia PLUS Toll Charge
RM2.90 (~S$0.87)
Malaysia Check Point (Departure)
–
Singapore Woodlands Check Point (Arrival)
–
Singapore Tuas Check Point (Arrival)
S$2.10
Total
S$7.73 – S$11.13
Vehicle owners pay about $7.73 for their round trip to Malaysia if they enter and exit via the Singapore Woodlands Check Point. If they enter and exit via the Tuas check point, it will be more expensive, at around $11.13.
If we assume that travelling from your home to the Causeway and then into Malaysia takes 25km one-way, we need to factor in an extra 50km worth of fuel for that trip. If your car’s fuel consumption is 10km/l, you will use 5l of petrol for the journey, of which 2.5l would be at the SGD fuel price and the remaining 2.5l at the MYR fuel price.
Price of Petrol (SGD)
S$3 X 2.5 = S$7.5
Price Of Petrol (MYR)
RM3.35 X 2.5 = RM8.375 (S$2.50)
Total Petrol Cost
S$10
Remember, Singapore cars are not allowed to pump using Malaysia’s cheaper (and subsidised) RON 95. You have to choose RON 97 or above.
Once we add petrol to the toll fee, the cost to drive into Malaysia would be about S$17.73 for a round trip to Johor Bahru (JB).
Read Also: What Is RON95, And Why Can Only Malaysian-Registered Vehicles Pump In Malaysia?
How Much Must You Spend To Recover The Cost To Drive Into Malaysia
Since drivers travelling to Malaysia already start at $17.73, the question now turns to how much one needs to spend in Malaysia to be worth their time travelling.
While the foreign exchange (Forex) rate between SGD and MYR is about 1 SGD = RM3.33 today, it doesn’t automatically mean Singaporeans save about 3.33 times more when they spend their money in JB.
According to the website Expatistan, which measures the cost of living between different cities, including JB and Singapore, JB is about 66% cheaper (excluding rent) than Singapore.
However, restaurant and grocery prices in Johor Bahru are about 59.9% and 52.7% lower, respectively. On average, let’s assume they’re about 55% cheaper. For example, if we spend S$100 on restaurants and groceries in Singapore, the same basket of goods will cost, on average, about S$45 in Malaysia. If you want to keep your calculation simple, assume that it’s, on average, about 50% cheaper – we will use this 50% reference for the rest of our article.
On a rough estimate for a basket of goods, for every RM333 (S$100) spent in Malaysia, you would expect the same basket of goods to cost about S$200. It’s not rocket science, and you may save more (or less) depending on what you buy and where you buy it from.
Travelling all the way to Malaysia to spend RM350 (S$100) so that we can save $100 (as the basket of goods will cost us $200 in Singapore), for which about S$17 goes into the toll and fuel charge means you save about S$87 This isn’t great for a trip that will likely take you at least half a day or more. To make your Singapore dollar (SGD) worth more, you would likely want to spend more in Johor Bahru, even if it’s just a day trip.
Here is an overly-simplified breakdown of how much you may spend in Malaysia, JB, how much a similar basket of goods could cost in Singapore, how much savings that translates into, and how much you save for each hour spent there based on an 8-hour trip.
Amount Spent IN JB
Similar Basket Of Goods In Spore
Estimated Amount Saved, After Toll And Petrol
Saving Per Hour (assuming 10-hour trip)
RM200 (SGD 60)
S$120
S$43
S$4.3/hour
RM400 (SGD 120)
S$240
S$103
S$10.3/hour
RM600 (SGD 180)
S$360
S$163
S$16.3/hour
RM800 (SGD 240)
S$480
S$223
S$22.30/hour
Due to the time it will take you to cross the causeway jam and back, you will likely need to cater about 10 hours for a grocery trip plus at least one meal in JB. To us, it starts being worth your time (and money) to travel to JB if you can save at least more than S$15 per hour. Think of it as a job and how much you expect to be paid for that extra work.
For example, suppose you intend to buy a basket of goods (e.g., groceries, meals, petrol) that would cost you about S$360 in Singapore. In that case, you may be able to get the same basket of goods at Johor for about RM600 (S$180), thus giving you savings of S$163 after toll and petrol costs, or about S$16.30 per hour.
If that amount increases to a spend of S$480 in Singapore, you may be able to get the same basket of goods in Malaysia for RM800 (S$240), thus allowing you to save S$223 after toll and petrol costs, or about S$22.30 per hour.
What Is RON95, And Why Can Only Malaysian-Registered Vehicles Pump In Malaysia?
Read Also: Is It Better To Change Your SGD For MYR In Singapore Or Malaysia?
Reduced GST Relief Since 19 February 2019
As announced in Budget 2019, travellers who spend less than 48 hours outside of Singapore will get GST relief on only the first S$100 worth of goods purchased overseas instead of S$150 previously. Additionally, those who spend 48 hours or more outside Singapore will get GST relief on only S$500 worth of goods instead of S$600 previously, so bear this in mind.
Do note this is based on a per-person limit.
Read Also: Shopping Across the Causeway: 12 Things You Can And Cannot Buy
Vehicle Entry Permit (VEP) To Be Mandatory From 1 Oct 2024
All foreign vehicles entering Malaysia are required to have a Vehicle Entry Permit (VEP). To comply with this regulation, drivers will need to apply for a VEP and receive an RFID tag, which will be installed on the vehicle’s windshield or headlamp.
Read Also: What Happens If Your Singapore Car Gets Stolen In Malaysia?
A Personal Preference
Whether the additional savings you enjoy are worth the time you spend in Malaysia is a personal preference. For some people who might have spent $360 or more in Singapore, heading to Malaysia to get their goods at a cheaper price of RM600 (SGD 180) could be worth their personal time. For others, it may not be.
Please note that the savings shown in this article are based on a simplistic assumption about the difference in price of good in Singapore and Johor Bahru, and how much you save or spend will vary depending on the individual.
This article was first published on 20 November 2016 and we have updated it to reflect the changes in the exchange rate (SGD 1 = MYR 3.30), toll charges, petrol prices and VEP requirements.
The post How Much Does It Cost For Singapore Cars To Enter Malaysia? And Is It Worth Your Time (And Money)? appeared first on DollarsAndSense.sg.
