KUALA LUMPUR - Malaysia will start issuing tags for a new Vehicle Entry Permit (VEP) system from mid-April, said the Ministry of Transport.

The tags will be released to foreign-registered vehicles entering Malaysia via the Causeway and the Second-Link in stages, according to a press release issued on Friday (March 16) by the ministry.

Malaysia announced in October last year that all foreign-registered vehicles entering Malaysia will soon require a RM25 VEP, on top of existing road charges. The VEP scheme was originally set to start in January this year, but was delayed because the authorities said more time was needed to fine-tune the system.

The government wanted to ensure that "everything is in place" before introducing the VEP at both the northern border with Thailand and the southern one with Singapore, transport minister Liow Tiong Lai was quoted as saying by The Star newspaper in December.

Mr Liow had earlier said the permit would be valid for five years.

There was no mention of a specific rollout date in the latest press release, which said the ministry is currently in the process of introducing the VEP system in phases at Malaysia's border with Thailand, and at its borders with Indonesia and Brunei in the states of Sabah and Sarawak.

It said the VEP tags will be released in stages after on-going application tests, which are expected to complete in mid-April.

The ministry said that the VEP system will "prevent foreign vehicles from being cloned and sold in the country".

It will also prevent vehicles with outstanding summonses from leaving the country.

The VEP tag is fitted with RFID technology and will be integrated with a cashless payment system developed by Touch 'n Go, the operator which collects road charges.

A separate RM20 road charge is currently imposed on vehicles entering the country from Singapore.

Mr Liow had said that a similar charge would also apply to cars entering the country from Thailand, Brunei and Indonesia.