KUALA LUMPUR (Malaysia): Levy imposed on local land transport operators for entering and leaving Singapore will be abolished by 2010.

Transport Minister Datuk Seri Ong Tee Keat said the abolition of the levy would result in a loss of about RM143mil (S$60.13 million)  annual revenue to the Government.

However, lorry operators hailed the move, saying it would increase trade all around.

Ong said at present, local transporters were charged (by Malaysia) RM100 per trip when they leave the country before entering Singapore.

"If they return laden with goods they will be charged another RM100," he said after officiating the state-level World Heart and Diabetes Day yesterday.

He said Malaysia, as an Asean member, would have to abide by an inter-state transport agreement signed during the recent Asean Transport Ministers' (ATM) meeting in Manila.

Pan Malaysian Lorry Operators Association president Er Sui See supported the move, saying: "This is a good thing. Trade will increase all around and the government will benefit from it."

He said the association had been fighting for the move, adding that levies were not imposed for entering Thailand.

On another matter, Ong said another agreement signed during the ATM meeting was the Asean roadmap on liberalisation of air services. "This means air services among capital cities in Asean will be liberalised by the end of this year."