Friday 25 July 2014

Levy on Singapore-registered cars

Another case of the malaysian authorities not thinking hard on the implication before acting. This could be another case of flip flop policy. Now they plan to impose a levy on Singapore-registered car not (at not more than RM50/SGD20). Well, this totally contradict their master plan to have Iskandar succeed.

1. Live in Johor and work in Singapore. I have always think that this idea is not feasible due to the inconvenience of the immigration queue. This will make it worst. That means, it will cost an additional SGD20 now per day or SGD400 per month. One can buy a bigger car in Singapore with this extra.

2. Shoppers in Johor. Imagine the impact for Singaporean shoppers if they need to folk out additional SGD20 per visit? Might erode much of their savings for shopping in Johor and cheap petrol. There are a lot of Singapore crossing the causeway daily for that purpose and especially for weekends. There are about 60,000 cars on a typical day this could be the main driver for the authorities to change their mind soon. 

3. Lower cost of Iskandar. The whole idea of having different sectors like manufacturing in Iskandar is also to get the spillover effects from Singapore based companies wanting lower cost in Malaysia. Well, now it worsen their cost advantage.

Most of the Malaysian registered vehicles entering Singapore are as a result of the heavy import of goods from Malaysia such as poultry, vegetables, fruits, etc. The flow of money goes to Malaysia. As for those Singapore registered vehicles entering Malaysia, it is for shopping. The flow of money goes to Malaysia again. This increase won't do them any favour. Sometimes, need to understand who needs who more in any relationship before making any decision or will result in a lose-lose for oneself.

Sigh, such kiddie tit-for-tat behaviour is just the worry for me when it comes to property in Malaysia. The causeway may look like this in future :)







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