Re: Not bad being a Malaysian (at least in JB)
Causeway toll hike to impact businesses in Iskandar, says daily
Published: 16 September 2014
The impending increase in tolls at the Causeway will impact businesses looking to relocate operations to the Iskandar special economic zone in Johor, Todayonline reported.
The report cited Association of Small and Medium Enterprises president Kurt Wee who said that even before the toll charges were raised, the 15% to 20% savings Singaporean firms in Iskandar had enjoyed “were not great”, adding that availability of labour and rising property costs were among the major reservations Singaporean firms had about moving to Iskandar.
Other experts agreed, saying that the rise in toll charges would affect the local economy in Johor as Singaporeans might go there less often. Similarly, the supply of Malaysian workers to Singaporean firms might shrink.
“If both (countries) keep catching up with each other, those that have part of their production facilities in Iskandar have to relook their calculations and decide to move the whole supply chain there and export their goods from ports in Johor, while those with sub-contracting or outsourcing arrangements to Iskandar may think twice about shifting things over,” Singapore Business Federation chief operating officer Victor Tay told Todayonline.
On September 12, the Land Transport Authority (LTA) announced that beginning October 1, Singapore would match Malaysia’s recent revision in toll charges as part of its long-standing policy of matching its toll charges at the Causeway to those set by Malaysia.
According to Bernama, the new toll rates will affect all vehicles (except motorcycles) entering Singapore.
The current toll rate for cars leaving Singapore will rise to S$3.80 (RM9.62) from S$1.20 while vans and light goods vehicles will see an increase in the rates to S$5.80 from S$1.90.
The toll rates for taxis and buses will increase to S$1.90 and S$3.10 from S$0.60 and S$1 respectively.
For vehicles entering Singapore, LTA will charge $2.70 for cars, $4 (vans/light goods vehicles), $5.30 (heavy vehicles), $1.40 (taxis) and $2.20 (buses).
Experts told Todayonline that the additional costs incurred by firms operating in both Singapore and Malaysia would likely be passed on to consumers, although commuters and businesses are expected to adjust to the hikes.
“In the short term, if trips to and fro can’t be avoided, it’s more likely costs will be passed on to consumers. What does this mean to you and me? Maybe, an egg will cost a fraction of a cent more. Things like that are inevitable,” CIMB economist Song Seng Wun was quoted as saying.
“Businesses will have to take this into account in the bigger scheme of things, but I don’t think it’s such an important factor to dissuade them either way.”
In an earlier report by Todayonline, National Association of Travel Agents Singapore chief operating officer Anita Tan said the association’s members had indicated Malaysia’s increased toll charges in July had had a significant impact on their businesses.
Johor-based carpenter Lee Chee Seng, meanwhile, had told the daily he might consider stopping supplying goods and services to Singapore, citing difficulties in absorbing the higher toll rates.
Another Malaysian, Hau Boon Siong, who travels daily to Singapore for work, said: “There’s nothing that I can do. What can we do?”
On September 13, DAP Skudai assemblyman Dr Boo Cheng Hau warned that the increase in toll rates would have an adverse impact on businesses in Johor Baru, adding that investor confidence in Iskandar Malaysia would also be affected.
Dr Boo had said that business in Johor Baru had
dropped by 30% over the past six weeks following the hefty toll increases at the Causeway to Singapore. – September 16, 2014.
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http://www.themalaysianinsider.com/...s-in-iskandar-says-daily#sthash.6PWzVTgD.dpuf
