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Exit levy: More bane than boon for Johor?
23 Jul 2006
Ravi Nambiar
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JOHOR BARU: The RM20 exit levy on foreign cars, expected to come into effect next month to defray petrol and fuel subsidies, could be a double- edged sword. The losers will be Malaysians and the economy on this side of the Causeway.
The move has not gone down well in Johor due to its far-reaching implications on the retail, hospitality and property sectors. Visitors from across the border, including Malaysians working there and driving Singapore-registered cars, contribute significantly to the local economy.
It is a complete reversal of the situation in the north, where owners of Thai-registered vehicles enter the country primarily to top up their empty tanks with subsidised fuel.
But buying fuel is probably the last thing on the minds of the visitors from Woodlands, who cross into Johor Baru daily. They donÂ’t have to because their tanks are nearly full when they cross the Causeway or the Second Link.
It is mandatory since February 1991 for Singapore citizens and permanent residents to have their fuel tanks three-quarters full before they drive into Malaysia. This started with the half-tank petrol regulation in 1989, and the move was intended to stop Singapore motorists from giving business to petrol kiosks in Johor.
Those who breach the rule are liable to a S$500 (RM1,400) fine.
Hence, the contention that Malaysia is being robbed of subsidised fuel by Singaporean motorists holds no water.
It is estimated that between 20,000 and 30,000 Singapore-registered cars cross the border every day, and the majority of them are Malaysian-owned. The Malaysian owners are permanent residents of Singapore. They live in Johor Baru and cross the Causeway daily to work in Singapore.
Under Singapore law, a PR holder cannot drive a foreign car. Hence, the visibly high presence of Singapore cars on Johor roads.
Admittedly, they contribute to the daily traffic snarls and the squeeze for parking space in the city. But the upside is that they spend their disposable income in Johor, and are welcomed by local businesses.
They are a major contributor to the local economy as they buy or rent houses and spend a sizeable portion of their wages on shopping and entertainment. Because they are paid in Singapore dollars, they are also less susceptible to the ups and down of the Malaysian economy and are, therefore, a stabilising factor for local businesses.
Like it or not, the Johor economy is heavily dependent on Singapore patronage and the fear is that the exit levy, if imposed, could result in these PRs moving to Singapore.
This prospect is real because there would be no savings to be made for these Malaysian workers, and their position is made worse by the daily traffic crawl at the Causeway.
The levy could also be an irritant for Singaporean day-trippers who frequent Johor Baru. They are price-sensitive and even a mere RM20 for a car load of them could put them off from making the trip.
And this could hurt Johor Baru badly.
Statistics showed that some 23,500 Singaporeans visit the city every day, with the Causeway being the main entry point. These visitors spend some RM5.3 million daily.
Last year, at the height of the so-called "crime wave" in Johor Baru, an estimated one million Singaporeans cancelled their trips, and the business sector lost about RM225 million in potential earnings.
With that kind of money at stake, the levy could be a case of killing the goose that lays the golden egg.
RM5.3 million daily revenue for the Southern State of Malaysia, will simply shrink or evaporate if the exit levy of RM20 is imposed, as the hard pressed Singaporeans will surely cut down on their trips into the southern Malaysian State of Johor.
"Statistics showed that some 23,500 Singaporeans visit the city every day, with the Causeway being the main entry point.
These visitors spend some RM5.3 million daily."
Originally posted by blueheeler:read underline >>>
[b]I'm not M'sian but I fully understand the exit levy, especially for S'pore cars who go to JB for cheap pertol. The M'sian govt spends billions each month to subsidize pertrol, I suppose to make it easier for M'sian pockets. In this case, S'poreans are not supposed to 'profit' from this.
But being the selfish S'porean like the rest of you, I will miss going to JB for cheap pertrol....[/b]
Here I pay S$ 1.56 per lit, that is RM3.59. In JB how much do you pay RM1.93? If it is, you save RM1.66 per lit. For one quarter tank you pump 14 lit, saving RM23!! Don't forget you need to drive to JB, using another 5 lits of petrol? Its never a reason for anybody to go JB just for petrol, and so there is nothing to miss.Originally posted by blueheeler:I'm not M'sian but I fully understand the exit levy, especially for S'pore cars who go to JB for cheap pertol. The M'sian govt spends billions each month to subsidize pertrol, I suppose to make it easier for M'sian pockets. In this case, S'poreans are not supposed to 'profit' from this.
But being the selfish S'porean like the rest of you, I will miss going to JB for cheap pertrol....
"Electricity" or "Electrical" ???Originally posted by tiggersgd:cheaper products? think again...they're consumables are slightly more expensive than in singapore, electrical more expensive, clothes being 1 or more generation backwards than singapore...just take a look at the new jusco in jb.
Originally posted by Atobe:quality? pls...even maids are better (in terms of education and so on) in singapore than in malaysia. i'm not bragging but take a serious hard look and u will see what are differences.
"Electricity" or "Electrical" ???
Malaysia's Electricity Tariff at 21.8 sen per kWh (kiloWatt hour)
Singapore's Electricity Tariff at 21.02 cents per kWh
[b]Electrical product - Floor Standing Fan - Made in Malaysia :
At JUSCO - Malaysia selling price - RM26.00
At NTUC - Singapore selling price - SGD28.00
4-way gang multi-point socket extension
At Giant - Malaysia selling price - RM19.00
At Mustapha or NTUC - selling price - SGD24.00
Bottle Pure Water - bottled in Malaysia :
At Giant or Jusco - 1 litre - 90sen each
At Mustapha or NTUC Fairprice - 1 litre - 90cents each
Large Apple Fuji - (imported from China)
At Giant or Jusco - 1 piece - 90 sen each
At NTUC Fairprice - 1 piece - 60 cents each
"Pirates of the Carribean" - Movie Ticket
At JUSCO - 1 Adult Ticket - RM 8.00 weekday RM 9.00 weekend
At SGP Cinemas - 1 Adult - SGD 8.00 weekday SGD 9.00 weekend
Pop-corn and drink at the Movie House
At JUSCO - 1 set - regular - RM 7.00
At SGP Cinema - same size - SGD 6.00
Seafood 5 dishes PLUS 3 large bottle Heinekan for group of 5 persons
At 3-storey Seafood Restaurant - RM 280.00
At any East Coast or Geylang Road Seafood Restaurant - SGD320.00
Hair cut-wash
JB Saloon - Adult - RM15.00
SGP Saloon - Adult SGD10.00 cut only
Car Wash - Vacuum
At Auto-shine outlet - RM8.00 per 4-door saloon (no MPV)
At any SGP station - RM6.00 (no vacuum)
SHELL V-POWER
Malaysia pump rate : RM 2.15 per litre
SGP pump rate : SGD1.71 per litre (without discount)
Click this reference - "Petrol Prices in Singapore" for a comparison of Singapore petrol prices with our neighbors and the World
The Singapore prices shown above may need correction.
[/b]
Originally posted by tiggersgd:Are you sure about the "arrogantly laced insinuations" you are making about the Malaysian "Quality problem" ?
quality? pls...even maids are better (in terms of education and so on) in singapore than in malaysia. i'm not bragging but take a serious hard look and u will see what are differences.
Originally posted by sbst275:Yes - "earn here and spend here " - will it surprise you that with our high salary and superior exchange rate, we can only afford to live in HDB flats - which require us to struggle for 20 years to settle the mortgage, at the end which we have nothing left for retirement.
Atobe, need I remind you of the wages here and JB???
That's why there's this phrase, here earn here spend, there earn there spend...
Imported Cars there is more ex than here, same goes to imported foodstuff
Originally posted by sbst275:I am not so sure with the route you have taken - when reading my last post that you have made reference to - and arrive at a conclusion that "SG is the seller, KL is the buyer".
Even the water, your theory sounds as if SG is the seller, KL is the buyer
Water supply, to any govt is as if money drop from heaven... Dr M buey siong with the 2 sen want to increase it though it's not allowed, he insist what MM Lee said of that 60 sen should be counted though it was never became black and white... Dun want, SG goes into desalinsation and NEWater, by then KL wun get a single cent at all
Very simple, SG is the buyer... There can only be a willing buyer willing seller basis...
now u want to talk abt education of cabinet ministers? actually if they have so high a standard in education, y bother to shift over to NUS for their "final" education route?Originally posted by Atobe:Are you sure about the "arrogantly laced insinuations" you are making about the Malaysian "Quality problem" ?
Do you realise the number of our Cabinet Ministers, MPs, and Senior Civil Servants - some as far back as the founding fathers of Singapore - are born in Malaysia, receiving their education in Malaysia before being accepted into NUS, and were able to excell in their chosen studies over Singaporeans in the same course ?
The most recent announcement had the present Chief Justice Chan Sek Keong as having his birthplace as Ipoh.
Sometimes a little humility helps in a reality check of who we are as humans, as a community, as a nation.
Originally posted by Atobe:i'll like to address the issue of NTUC here.
I am not so sure with the route you have taken - when reading my last post that you have made reference to - and arrive at a conclusion that "SG is the seller, KL is the buyer".
My previous post had merely shown a list of price comparison of selected goods and services for the benefit of tiggersgd.
With regards to the "water issue" - all that was posted concerns a ONE Litre bottle of pure water - (actually it should be corrected to be 1.5 litre) - bottled in Malaysia, is sold in Malaysian Supermarkets at [b]90sen per bottle; while NTUC had also on their shelves similar Malaysian bottled pure water being retailed at 90cents per bottle.
From this alone, should we not enquire from NTUC if they are making exorbitant profit, if the same bottled water from Malaysia can be sold at such a wide disparity of pricing ?
This "Comparison of Consumer Product Retail Prices" has nothing to do with the scrap that Dr M created with the Singapore Government - concerning the long term contracted price for raw water supply to Singapore.
"SGP the seller, KL the buyer" ???????
[/b]
Originally posted by Atobe:if u were to buy many of the above stated items from NTUC, then u can only blame yourself if u burn a hole in ur pocket. In singapore, if u want cheap stuff, go to those $1 shop, Seng Song, Giant or wherever, they all offer better value for money. (if u are talking about conveinence, those places are definitely nearer to yoour home than JB.)
"Electricity" or "Electrical" ???
Malaysia's Electricity Tariff at 21.8 sen per kWh (kiloWatt hour)
Singapore's Electricity Tariff at 21.02 cents per kWh
[b]Electrical product - Floor Standing Fan - Made in Malaysia :
At JUSCO - Malaysia selling price - RM26.00
At NTUC - Singapore selling price - SGD28.00
4-way gang multi-point socket extension
At Giant - Malaysia selling price - RM19.00
At Mustapha or NTUC - selling price - SGD24.00
Bottle Pure Water - bottled in Malaysia :
At Giant or Jusco - 1 litre - 90sen each
At Mustapha or NTUC Fairprice - 1 litre - 90cents each
Large Apple Fuji - (imported from China)
At Giant or Jusco - 1 piece - 90 sen each
At NTUC Fairprice - 1 piece - 60 cents each
"Pirates of the Carribean" - Movie Ticket
At JUSCO - 1 Adult Ticket - RM 8.00 weekday RM 9.00 weekend
At SGP Cinemas - 1 Adult - SGD 8.00 weekday SGD 9.00 weekend
Pop-corn and drink at the Movie House
At JUSCO - 1 set - regular - RM 7.00
At SGP Cinema - same size - SGD 6.00
Seafood 5 dishes PLUS 3 large bottle Heinekan for group of 5 persons
At 3-storey Seafood Restaurant - RM 280.00
At any East Coast or Geylang Road Seafood Restaurant - SGD320.00
Hair cut-wash
JB Saloon - Adult - RM15.00
SGP Saloon - Adult SGD10.00 cut only
Car Wash - Vacuum
At Auto-shine outlet - RM8.00 per 4-door saloon (no MPV)
At any SGP station - RM6.00 (no vacuum)
SHELL V-POWER
Malaysia pump rate : RM 2.15 per litre
SGP pump rate : SGD1.71 per litre (without discount)
Click this reference - "Petrol Prices in Singapore" for a comparison of Singapore petrol prices with our neighbors and the World
The Singapore prices shown above may need correction.
[/b]
Originally posted by tiggersgd:
now u want to talk abt education of cabinet ministers? actually if they have so high a standard in education, y bother to shift over to NUS for their "final" education route?
y dun u stick to topic proper? perhaps that's ur style...anyway, to answer u plainly:
arrogantly laced insinuations? pls define which part of my reply is of ur accusations? have u any personal experience to even justify that part? i have my own experience and esp when it comes to maid issues. do u?!![]()
Originally posted by tiggersgd:
quality? pls...even maids are better (in terms of education and so on) in singapore than in malaysia. i'm not bragging but take a serious hard look and u will see what are differences.
This was brought up as an extension of my response to your insinuation that "your maid's supposed education is far more superior" than the Malaysian.
as for chief justice being borned in ipoh...what does that mean? it only mean that he is borned in ipoh and chose to work in singapore in his current capacity. i can only say it is gd for singapore and bad for msia. i don't even want to go into details of whether he is a singaporean per se.
Many thanks for your concern to my position, but with an attitude on humility as spelled out by you as it is in a public forum - you will probably have to take a double look at the effect to your own position as viewed by third parties.
humilty? pls, dun read my humility as arrogance bcos it will look bad on you. esp when you have exposed urself in terms of not knowing and understanding quality issues from msia. let me just give you an example of their "quality" > proton series of cars...![]()
![]()
where it comes to quality, i pride myself being a singaporean to have gotten better quality products and in all sense am glad that i don't live across the straits so much anymore.![]()
Originally posted by tiggersgd:It was a relief that you have brought up the subject of exchange rate - but I am surprised that you did not develop this 'brainwave' further in your follow-on reply to the subject of NTUC purchases from Malaysia but merely digress into the costs of transporting the purchased products into Singapore.
i'll like to address the issue of NTUC here.
first off, u need to understand the exchange rates of both countries. we're on different exchange rates, hello?!
second, msia having the natural resource - water, can at her will and whimper churn out millions of bottles of "mineral" water to her economy. this may in turn be a source of revenue to her...straight off from one of her many waterfalls.![]()
now what has singapore got to even come close to that? her lastest project - "new"water and of course the traditional tap water.
for NTUC to make a profit, u need to understand that msia companies dun charge singaporean companies and esp if its somewhat singapore govt linked companies the same or equal prices as other companies. in short, msian companies are out to "chop" a hefty price off the singapore companies.
let's take this example: facial tissues
facial tissues in shop n save in singapore is retailing at 4.80 - near 5. the same brand of facial tissues is retailing in JB or even KL at slightly more than doubled that amount but in ringgits...say 9 - 10 plus. so, can we say its cheaper to get stuff over at JB or KL? not forgetting if one decides to buy these gds, one has to carry these back to s'pore. where's the costs for this freight then? thus, let me assure u that it is definitely not worth to get certain stuff in msia anymore...much less to talk abt fuel etc.
Are you referring to yourself as a 'Property Developer' when bringing "your floor layout of your terrace, bungalow and meet with the official in charge of your area" ?Originally posted by tiggersgd:atobe, let me just put the electricity issues and perhaps the msian couple retirement plan in perspective.
to understand better, let's just put it that i have a particular property in msia. and with regards to electricity charges, i know for a fact that i can just bring my floor layout of my terrace, bungalow and meet up with the official in charge of my area and tell him that i would like this particular row of electrical points to be charged "fixed" rates/month. how's that for cheaper electrical charges? does ur statistics on electricity in msia still stand?
This response is a surprising change in your position towards the Malaysian circumstances, after your attitude towards their 'quality' issue.
as for msian couples planning retirement...first off, they can own a landed property provided both couples are working and earning around 10K+ or less per couple rather comfortably. that's the msian standard. look at their newly developed "condo" around JB or KL (i'm stating these 2 areas bcos of high demand and turnover), in JB, one unit (condo) is selling at around 90K ringgit...freehold! what in singapore can u get this? let's talk abt a damasara landed unit, retails around anywhere from 250K to 300++ ringgit for a smaller landed unit. is it possible in singapore? thus, home ownership is so much affordable in msia than in singapore. this translate into earlier if not easier retirement planning for the msian couple than for a singaporean couple.
of course, in between there'll be issues like standard of living and so on...but let's focus on the above and u can see for urself how "easy" it is for a singaporean couple to plan for their retirement in msia and much faster in achievement of that retirement than a msian couple. speaks alot of why msians still want to cross the straits to work in singapore.
Originally posted by dibilo:You are correct concerning the NTUC 'not-so-fair pricing' despite their attempt to promote 'FairPrice'.
if u were to buy many of the above stated items from NTUC, then u can only blame yourself if u burn a hole in ur pocket. In singapore, if u want cheap stuff, go to those $1 shop, Seng Song, Giant or wherever, they all offer better value for money. (if u are talking about conveinence, those places are definitely nearer to yoour home than JB.)
How much different can a 4-way socket extension be - when both are certified by the respective National Safety Board of each country, with both applying the same electrical engineering accreditted standards ?
Also, although you are comparing the same kind of product, are you comparing the same brands as well? 4 way plugs, Fans, for example. there are a wide range of products there out in the market. if you are ok with low quality electronics, i bet you can find one that is comparable in price with what u can get in MY (probably MY is still a little cheaper but then i doubt u would want your warranty to be valid in MY instead of SG.)