Electronic payment equipment and special gantries have been installed at the Causeway and Second Link, signalling that the Malaysian authorities are all set to impose the RM20 (S$8.80) levy on Singapore cars.

But there has been no official word from Kuala Lumpur on when the levy will kick in.

The New Straits Times (NST) reported that trial runs for the equipment, involving stored-value card readers, similar to Malaysia's "Touch 'n Go" cards, have been conducted over the past few days.

Customs and Immigration officers at both entry points have also begun verbally notifying Singaporean motorists of the move.

A Singaporean motorist told the NST that Customs officers at the Second Link had informed her that the levy would be imposed from tomorrw.

The levy, which is meant to defray the fuel subsidies that have kept Malaysian pump prices among the lowest in the region, was to have come into effect on Sept 1 last year but Malaysian ministers have been sending mixed signals on whether to impose it or not, or when it would be implemented.

A senior Malaysian Transport Ministry official told the NST that "no decision has been made yet" and they are "still waiting for a Cabinet paper."

On the other hand, a senior immigration officer said: "We have installed the equipment but the exact date the levy will come into force has not been decided yet. The Transport Ministry will announce it soon."

Installation of the equipment apparently began late last year. According to Iris Corp, the manufacturers of the new gantries and card readers, the company was awarded a contract last year to supply the equipment.

An official told NST the company began work on the project last month. He said the company was told by the Malaysian government to ensure the equipment was ready for use by Feb 1.

Various quarters, especially retailers from Johor, have expressed reservations over the levy. They are concerned that Singaporeans may be put off from coming to Malaysia.

State executive councillor Freddy Long, who heads the tourism portfolio, said he feared the levy would affect the tourism industry in Johor.

Singaporeans spend an average of RM5 million a day on food, shopping and entertainment in Johor. Most hoteliers, retailers and restaurant operators are heavily dependent on their patronage.

An AsiaOne reader, Rene Kelvin Anthony, wrote in saying: "I think the Malaysia's decision to pose a levy, should they decide to do this, will be one that they will regret, maybe not the government itself but the shops that have been enjoying the booming business that Singaporeans have been pumping in everyday in terms of shopping and such."

Another reader, Lu Ci said: "It would certainly discourage me, I don't think the penny pinching saving of buying groceries from a Johor supermarket is worth this hassle either. I have certainly not shopped in Johor for more than two years."

However, the Malaysian Minister of Tourism is confident that the fee will not adversely discourage Singaporeans from going to Malaysia.

Tengku Adnan Tengku Mansor said it was only a matter of Singaporeans "getting used to it". He added: "You got nowhere else to go. We got good roads, beautiful sights", he told reporters at a media briefing in conjunction with the Asean Tourism Forum (ATF) 2007.

He said that Malaysians coming to Singapore have to pay a much higher car levy of "S$20 x 2.3". "But we don't grumble and you got less roads than us," he said.

Singapore currently imposes a S$20 (about RM46) entry permit fee on Malaysian cars and S$4 (RM9) fee on motorcycles entering the republic from 2am to 5pm on weekdays. No fees are levied on weekends and public holidays.