Johor Bahru SMEs worried about new toll rates

Small businesses in Malaysia, are you feeling the pinch from the raised toll hikes to Singapore?

According to Teh Kee Sun, chairman of the Malaysian Small and Medium Enterprise association, local small business owners in Johor Bahru (JB) had complained to him of a loss in business of between 20% and 30% - mainly in the logistics, advertising, entertainment and retail sectors.

He told a press conference many SMEs are appealing to leaders in Malaysia and Singapore to talk about the issue further, so that the effect doesn't snowball after Singapore also increases its toll rates on October 1.

The new toll rates in Malaysia are RM9.70 and RM6.80 for inbound and outbound cars. Singapore’s new toll rate for cars will increase from S$1.20 to S$3.80 (RM3.03 to RM9.62).

“The impact is already being felt. I used to charter private cars to and from Changi airport, which cost me RM200. Now the price has doubled,” Teh told reporters, The Star reported.

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Teh also said he believed the toll hikes would affect middle income families living in Malaysia and working in Singapore, and he is "against any barriers" which might hurt the movement of goods between both countries.

He added its likely any increases in operating costs because of the hikes would be passed on to consumers.

Image: Jonathan Choe, Flickr