Archive for July, 2006

A Story of a farmer killing his Golden Goose

Sunday 23 July 2006 @ 3:05 am

Or So it seems.

You see, the Poor Malaysian is going to be made far much poorer, with the least of outcry by politicians who cry foul of fuel subsidies and so forth.

Who are the ultimate losers?
“, “You see, oÂn average, an honest Singaporean who drives into Malaysia drives in with 3/4 tank full of fuel, and of that, he is oÂnly to save about $10 *(Based oÂn a standard Proton Wira 40L fuel tank) as he can get a ’subsidy’ by filling up at the most profitable Gas Station: Caltex in the tebrau (Which by coincidence is owned by HM Sultan of Johor)

But to come into Malaysia, that Singaporean have to fork out $2 for Singapore Causeway Toll and another RM2 at the Johor Baru gantry (Operated by PLUS) just to get his bum into Malaysia. That excludes the deterrent traffic jams caused by the incompetent fools manning the Immigration & Toll booths plus the Singaporean every kiasu ICA to check the cars coming out who try to sneak out without the proper 3/4 tank fuel (and the occasion illegal immigrant).

So where does the economics of having to pay another RM20 (S$10 / USD5) to the Malaysian Federal Government justify the increasing fuel costs and loss of subsidies due to diesel snannywags from Thailand (and the Northern States).

Why can’t they just do what Singapore did? Impose 3/4 tank full of fuel? If that still don’t deter them, then place a petrol station right smack in the FTZ area so that they have to pay the full cost of fuel, UNSUBSIDISED and FULLY TAXED before they can proceed into Malaysia ‘Mainland’.

I am a Singaporean, and even when I take the bus, I spend at least RM250 at the mall, and RM20 just to fill up my tummy to justify the urge to be a glutton for the day. So where they try to cut down oÂn the traffic, they also cut down oÂn the amount of visitors coming in, 25,000 cars a day! That with 3 in a car equates to at least 5.7 Million Ringgits being lavished oÂn the local Malaysian Economy.

It’s bad enough that the Premium Quality Fishery catch and Vegetables are sent to places like Giant in Singapore first and the 2nd grade goes to export to Europe, lest not we forget that the local farm markets oÂnly sell those that can’t be sold in Singapore or overseas due to poor quality or exceed the permitted levels of poisons in them!

So who is poorer now? The Malaysian who think he can make a few more Ringgit by working in Singapore riding his Singapore Vehicle to and forth , commuting daily.(Did I forget that Malays & Bumiputeras can’t work in Singapore oÂn the request of the federal goverment?)

My commentary and advise: Park+Ride my fellow people, Don’t Drive that car. Don’t Ride that motorbike into Singapore. Use the bicycle instead. Yeah.. you will make the same amount of traffic snarl oÂn the Singapore end of the causeway but you don’t get taxed! Otherwise, do like what the EU did, if you enter Schengen , you must have a valid disc, and if you enter Swiss, you pay a visitors permit : 120â‚¬ or so for the year. In the Malaysian aspect: pay the flipping Malaysian Tax if you wish to but not oÂn a PER-EXIT basis.
If you want to be fair, charge ALL VEHICLES IRREGARDLESS OF ORIGIN, Domestic or International Alike, Private or Public (Including Taxis and Buses). Or Singapore can impose emergency surcharge again….

That is my commentary for the day.

Excerpt from the NST oÂn Sunday 23/7/06:

Exit levy: More bane than boon for Johor?

23 Jul 2006
Ravi Nambiar

JOHOR BARU: The RM20 exit levy oÂn 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 oÂn this side of the Causeway.

The move has not gone down well in Johor due to its far-reaching implications oÂn 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 oÂn 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 oÂn 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 oÂn 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 oÂn 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 oÂne 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.

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