LTA: We’ll match Msia’s new toll charges next few wks

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LTA: We’ll match Msia’s new toll charges next few wks

August 2nd, 2014 | Author: Editorial

The Singapore Government will match Malaysia’s new toll charges in the next few weeks, LTA said in a statement yesterday (1 Aug). This is issued in response to Malaysia’s latest increase in toll charges for vehicles travelling from Singapore to Johor, and to the implementation of new Causeway toll charges on vehicles travelling from Johor to Singapore.

Announced by the Malaysian Highway Authority last week, Malaysia increased toll charges for all vehicles, except motorcycles, travelling from Singapore to Johor through the Causeway as well as levied a new causeway toll for all vehicles travelling from Johor to Singapore, starting from yesterday.

The move to match these new toll charges is in line with “Singapore’s long-standing policy” of matching its toll charges at the causeway and Second Link to those set by Malaysia, LTA said. LTA added that Malaysia is “aware of this policy”.

“As details of Malaysia’s toll revisions were not made known to Singapore earlier, LTA would need some time to operationalise the changes,” the LTA spokesman said.

Yesterday, Malaysian buses staged a strike early in the morning at the Johor checkpoint to protest against the new toll charges imposed by the Malaysian government (‘M’sian bus drivers stage strike at Johor checkpoint‘). The protest caused a massive jam at the causeway, affecting mostly Malaysian workers and students coming into Singapore.

Malaysian media reports said that the Malaysian bus drivers were persuaded to end their strike after local authorities promised a review of increased toll rates within a week. However, the standoff had already caused a massive buildup on the Malaysian side of the causeway.

It is estimated that over 100 buses and 5,000 people were affected by the checkpoint blockade.

Meanwhile, the Malaysian authorities said they will take action against the drivers involved in the incident.

On Singapore side, there is a growing concern among businesses that their earnings could be squeezed due to the new toll charges. Business leaders also worry that the increased costs could be passed down to consumers.
Mr Thomas Chua, President of the Singapore Chinese Chamber of Commerce and Industry, said, “Both parties have to work on some solution and some consensus, then you tell the businesses from both countries how much it’s going to increase. It’s not the increment per se – the whole process I think is not very productive.”

Mr Kurt Wee, President of the Association of Small and Medium Enterprises, said, “If we have this increase which is going to represent quite a serious quantum for logistical trips for SMEs, of course those with higher-value goods may be less impacted, and those with lower-value goods will be much more impacted.”

“At the end of the day, I think it will reach a level whereby businesses will feel ‘this is a level of costs I cannot absorb, I have to pass on to my other business counterparts or the consumers.’ So we can expect that it will be passed on for sure.”

Some companies whose workers were affected by the causeway disruption yesterday said they will consider giving their Malaysian employees a transport subsidy, to enable them to get to work without having to rely on the chartered bus services.

Cleaning company ISS Facility Services said 29 of its workers were affected by the incident yesterday’s morning. The workers had informed their superiors and crossed the causeway on foot. The company said it engages the services of a Malaysian bus company to ferry its workers across the Causeway.

Another affected company in Tuas said it made arrangements to pick up its workers. Grocery Logistics of Singapore, a company owned by NTUC FairPrice, said fewer than 20 of its warehouse staff were affected. The company said it is “closely monitoring the matter”.

Ultimately, all these tit for tat hikes and charges will only hurt Singaporeans as businesses can only pass the costs down to the Singapore consumers.


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