VEP & Carbon Tax: How Malaysia’s Green Policies Affect Singaporean Drivers

Thinking of driving your Singapore car into Malaysia soon? If you’re already familiar with the Vehicle Entry Permit (VEP), there’s one more thing you should keep an eye on—carbon tax and Malaysia’s green vehicle policies. As sustainability becomes a bigger focus, Malaysia is tightening regulations for high-emission vehicles, and that may affect how you register and drive across the border. At MyMechanic, we’re staying ahead of these changes so you don’t have to stress about compliance.

What Is Malaysia’s Carbon Tax Policy?

Malaysia has been actively introducing carbon-reduction strategies in line with its national climate commitments. In 2025, one area of focus is vehicular emissions. Key policy points:

• Proposed carbon tax for high-emission vehicles, including foreign-registered ones (coming 2026, starting with heavy industries but expected to expand)[4][5][12][14]
• Encouragement for EVs and hybrid cars through incentives and lower road charges[7][13][10]
• Emission-linked restrictions that may influence VEP registration for certain vehicles

Will Carbon Tax Affect My VEP Application?

It could — depending on your car’s emission rating and fuel type. You may face:

• Higher road charges or processing fees in the future if your vehicle has a high CO₂ output
• Longer approval times for older, non-compliant cars
• New documentation requirements related to your car’s emission class

Driving an EV or Hybrid? You Might Save

If you’re already driving a low-emission vehicle, you might actually benefit. Malaysia is planning:

• Lower road charge rates for electric and hybrid vehicles[7][10]
• Faster VEP processing for green-compliant vehicles
• Preferential lanes or exemptions at certain border checkpoints (being discussed)

What Should You Do Before You Travel?

We’re constantly monitoring changes in VEP + carbon rules, so you don’t miss anything important.

• Check your vehicle’s emission class (from LTA records)
• Make sure your insurance covers cross-border travel
• Apply for your VEP early—especially if your car is older
• Ask MyMechanic for a document check before you apply

Frequently Asked Questions