More than 400 Johor-based travel agencies claim their businesses have suffered after Singapore authorities rejected their Vehicle Entry Permit (VEP) applications over the past two years, effectively barring licensed Malaysian tour vehicles from entering the republic.

According to group representative Khairul Anuar Mokhtar, the restriction, which began in 2023, has caused income losses of up to 50% for operators using premium multi-purpose vehicles (MPVs) such as Toyota Alphard, Toyota Vellfire, Hyundai Staria, and Hyundai Starex.

Also affected are Tourism Malaysia’s Hire & Drive licensed vehicles, which are subject to strict requirements, including six-monthly safety inspections, passenger insurance, and certified drivers with Public Service Vehicle (PSV) licences.

“With the restrictions, this gap is now being filled by private vehicles operating illegally between Malaysia and Singapore, giving a bad name to legitimate travel agencies and affecting Johor’s tourism image,” Khairul said during a press conference attended by 30 agency representatives.

He explained that the restrictions impact services typically used by senior citizens, disabled passengers, and corporate clients who prefer premium transport for smoother immigration clearance.

The issue comes amid reports that 119 premium vehicles have been seized by Singapore’s Land Transport Authority (LTA) for allegedly operating without authorisation.

As a solution, affected operators have proposed a special point-to-point permit for cross-border journeys, allowing Singapore’s Private Hire Vehicles and Malaysia’s Hire & Drive licensed vehicles to operate legally between the two countries.

Currently, private vehicles offering cross-border passenger transport remain illegal in both Malaysia and Singapore, even under e-hailing platforms — leading to crackdowns on both sides of the Causeway.

Earlier this week, Transport Minister Anthony Loke said Malaysia is ready in principle to discuss cross-border e-hailing with Singapore. He noted that the matter had been previously raised with former Singapore Transport Minister Chee Hong Tat, though Singapore was not prepared to proceed at the time.