JOHOR BAHRU - On weekdays, Singaporean e-commerce entrepreneur Iylia Kwan relies on a reliable, roomy Toyota Corolla Altis for his regular commute from his family home in Yishun.

But come the weekend, the 36-year-old bachelor who rents a semi-detached house in Pasir Gudang city, a half-hour drive to Johor Bahru, cruises across Malaysia’s long winding highways and off-road trails in a sporty Malaysian-registered 4.8 litre Porsche Cayenne SUV.

“Some people may say, ‘Oh it’s not a Singapore Porsche’, but a Porsche is a Porsche and I’ve always wanted to own one,” said Mr Kwan , noting that the chance to drive and purchase such luxury cars in Malaysia is, for him, an affordable indulgence too good to resist .He paid RM50,000 (S$15,000) for a secondhand 2009 model three years ago, compared with the more than $60,000 he would have had to fork out for a similar used model in Singapore including COE.

The V8-powered Cayenne isn’t his only indulgence. For his birthday t his year, he bought a used Malaysian-registered Mercedes-Benz E-Class saloon with a number plate bearing his birth year and age, calling it a “fated” purchase, he told The Straits Times.

Mr Kwan is among a small but growing number of Singaporeans living out their weekend driving dreams by purchasing sports and luxury vehicles in Malaysia – acquisitions that would be very costly back in the Republic. This is a post-pandemic trend, which industry observers and participants attribute to Singapore’s sky-high Certificate of Entitlement (COE) prices and the Republic’s move towards a “car-lite” society.

Some are even leasing landed homes or “renting” season parking lots at condominiums in state capital Johor Bahru from RM200 to RM400 per month for the space to leave their vehicles, car owners told ST.

With COE prices in Singapore climbing steadily since the start of Covid-19, little wonder that some car enthusiasts are looking across the border to fulfil their motoring dreams without wringing their wallets dry.

While Mr Kwan isn’t able to drive his Porsche or Mercedes in Singapore according to local laws, he is not fussed about that.

According to Singapore’s Land Transport Authority, Singaporean citizens, Permanent Residents and long-term pass holders, are not allowed to “keep or use” foreign-registered vehicles in Singapore.

In Singapore, the price of COEs – mandatory permits that must be purchased on top of the actual price of the vehicle and allowing ownership for 10 years – can significantly impact the overall cost of a car.

COE prices, which are determined via a bidding process twice a month, can potentially account for 50 per cent or more of the vehicle’s sale price, especially for the larger, higher-performance models. 

In October 2023, COE prices hit a record high with premiums for smaller cars reaching $106,000 and open category vehicles touching $158,004 .

Mr Iylia Kwan, posing with his Malaysian-registered 2009 Porsche Cayenne SUV right after he purchased it from a car dealer in Selangor on X 2022.

PHOTO: COURTESY OF IYLIA KWAN

Foreigners are allowed to own Malaysian-registered cars, said Road Transport Department (JPJ) director-general Aedy Fadly Ramli who spoke to ST recently, noting that the process is relatively similar to that for locals.

They can register ownership of a vehicle by going in person to any JPJ counter – there is one in most districts in every state – with their passports, and will also have to undergo biometric thumb-print verification, according to the JPJ website . Malaysian citizens and permanent residents can opt to do this via JPJ’s online portal mySIKAP . Also, used vehicles must pass a mandatory inspection before ownership is transferred.

Un der Malaysia’s road laws, Singaporeans with a Singapore-issued driving licence are legally allowed to drive in Malaysia. Malaysian-registered vehicles in the country must have valid road tax and third-party insurance at a minimum to be driven on public roads.

Car dealers in Johor say many foreigners, including Singaporeans, typically pay for their new and secondhand purchases in full, with cash.

Made-in-Malaysia cars like a 1990s Proton Wira can be had for as low as RM2,500 in the used market, while popular family SUVs like the 2013 model Honda CR-V assembled in Thailand start from RM31,000.

“A 2018 BMW 3 Series 330e, popular among my Singaporean clients, can be had for around RM80,000,” said Johor-based Mr Luis Pradeeb, a sales adviser at Sime Darby Auto Selection who specialises in used Continental and new BMW cars. A similar second-hand model in Singapore would be priced from $71,000, inclusive of COE.

“I sold six cars to Singaporeans between January and May this year, compared with eight throughout 2024,” he add ed .

While it’s possible for a Singaporean to obtain a car loan from a Malaysian bank to purchase a Malaysian-registered car, the loan terms may differ from those offered to locals – such as requiring a local guarantor and a larger down payment, or offering a lower amount of financing.

Once the dream cars have become a reality, the owners must find a place to park their Malaysian-registered vehicles.

Enter Singaporeans Heeraj Sharma, 36 and Regis Tia, 28, who just launched their 24,000 sq ft warehouse facility in Skudai – about 15 minutes from Johor Bahru city centre – that offers storage for luxury and sports vehicles.

The duo , who also own and operate Trilogy Auto Detailing, which offers car detailing services in Singapore, said that 10 Singaporean drivers have signed up for storage with “hundreds more” enquiring online.

Mr Heeraj Sharma (left) and Mr Regis Tia, founders of Carlogy, at their 24,000sq ft warehouse facility in Skudai that offers storage for luxury and sports vehicles pictured together with Mr Heeraj's Malaysia-registered Mini Countryman.

ST PHOTO: HARITH MUSTAFFA

The Carlogy facility , which also has an event space for motoring meet-ups, charges RM1,000 per month for an air-conditioned lot with space for up to 38 vehicles, and RM700 monthly for its 25 non-air-conditioned lots. The fee includes 24-hour security, weekly engine warm-ups and monthly car washes.

“We want to make it (the experience) as seamless as possible so we got security here... we have CCTV cameras and guards, and we also have a 24-hour concierge service for you to check on your car any time,” said Mr Heeraj, whose company also helps Singaporeans source and purchase cars in Malaysia through local dealers.

Malaysian-registered cars are a post-pandemic thrill for Singapore motoring fans . Mr Vincent Goh, vice-president of the Jeep Owners Club Singapore (JOCS) that was set up in January, said more Singaporean motorists are now more “open” to the idea of purchasing cars in Malaysia and driving them in-country.

Currently, Mr Goh says about 10 per cent of the club’s 90 or so members use Malaysian-registered four-wheel drive vehicles to partake in weekend, off-road trips in Malaysia – a trend which have become increasingly popular in recent years – and he expects the number to gro w .

Singaporean performance car enthusiasts like Mr Kelvin Kok, 51 are also snapping up sports cars in Malaysia. In October 2024, he purchased a Malaysian-registered Toyota GR Yaris hot hatch for RM230,000.

The reconditioned, second-hand model from Japan was financed with a bank loan and is parked at a friend’s landed property in Johor Bahru.

Singaporean car enthusiast Kelvin Kok, 51, with his Malaysian-registered Toyota GR Yaris hot hatch at his friend’s home in Johor Bahru, before driving up to Selangor for motoring event SuperGT on June 27.

PHOTO: COURTESY OF KELVIN KOK

Mr Kok, who works in the finance industry, uses the car for leisurely drives and motoring events in Malaysia, including track days at the Sepang International Circuit, for up to six times each month.

“Right now, I specifically do my grocery runs in JB on a weekly basis so that I can drive the ‘little mistress’ around,” said the father of two, referring fondly to the hatchback.

“It really feels liberating to be able to drive this car... I should have done this earlier in life,” he added.

S ome motor enthusiasts are even contemplating buying cars for the women in their lives.

Mr Kwan, who is not stopping at two, is considering getting a 20-year-old Volkswagen Beetle for about RM13,000 for his 71-year-old mother.

“My mother said it was her dream to own a Beetle, so I thought I’d get it for her to go shopping in JB (with) her friends. It’s a small, cute and easy car to drive too,” he said.

Still, owning Malaysian-registered vehicles in absentia isn’t without its challenges, as Singaporean motorists lament the limited amount of secure parking facilities in Johor Bahru. Not to mention the hassle of additional costs and time spent on car maintenance and repairs.“Singaporean drivers with Malaysian-registered cars rely on friends owning property in JB, to park at their condos or landed homes,” said Mr Heeraj.

Events manager Afeeq Anwar parks his Malaysian-registered 1990s Toyota Altezza sporty sedan in the front porch of a relative’s house in Gelang Patah town about 25km from the state capital . “Ideally, I’d prefer parking in a place that’s secure and nearer to the (border) checkpoint,” said the 30-year-old Singaporean.

Mr Afeeq Anwar bought this Malaysia-registered 90s Toyota Altezza to fulfill his dream of collecting retro Japanese cars.

PHOTO: COURTESY OF AFEEQ ANWAR

In dustry experts advise Singaporeans bent on purchasing cars in Malaysia to be sure that everything is done properly and by the book.

Mr Wan Agyl Wan Hassan, analyst and founder of transport think-tank MY Mobility Vision, pointed out that insurance claims could turn gnarly if a vehicle isn’t properly registered.

“Owning a car across the border seems like a smarter and cheaper option, but you’re not just buying a car, you’re also buying a cross-border responsibility,” he told ST.

Harith Mustaffa is a journalist covering Malaysia for The Straits Times, with a focus on Johor.

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