Singapore Rejects Indonesian Proposal to Tax Ships Through Strait of Malacca

Amid talk of Iran collecting tolls on the Strait of Hormuz, the Strait of Malacca, now one of the busiest sea routes in the world, has also sparked a new debate. Indonesia has suggested a tax on ships passing through. Indonesian Finance Minister Purbaya Yudhi Sadeva recently said that a large number of ships pass through the Strait of Malacca daily, but they are not charged. She questioned whether there should be a toll when it is such an important trade route. She suggested that if a tax is imposed, the proceeds could be shared between Indonesia, Malaysia, and Singapore. However, the proposal drew an immediate response from Singapore. Singapore's Foreign Minister Vivian Balakrishnan was clear that the route should always be open and free. He said, "We will not be part of any effort that involves a toll on this route or stopping the movement of ships." The minister of Indonesia and Singapore said that "this route passes through an agreement without any fee."