Singapore's move to finally match Malaysia's toll hike at the causeway is set to hurt Johor's economy, says Johor DAP chairperson Liew Chin Tong.

Liew said the 470 percent hike on the Malaysian side and subsequently another 470 percent on the Singaporean side means it was now too costly to commute between the two countries daily for work.

"With this tit-for-tat move, it is as though a 'wall' has been erected on the Causeway to separate the two neighbours," he said in a statement today.

Liew ( left ) added that among the areas that will be hit by the repercussion will be Johor's Iskandar Development Region which can no longer rely on its proximity to the republic to spur rapid development because of the high cost despite the short distance.

"The local economy in Southern Johor, especially small traders, tourism, logistics sectors in Johor Baru are likely to face chilling prospects," he said.

Furthermore, Liew said this will also affect the national economy on the whole.

Yesterday, Singapore announced the toll for a round trip between Malaysia and the city state at the Woodlands Customs, Immigration and Quarantine (CIQ) complex will be raised from S$1.20 (RM3.04) to S$6.50 (RM16.46) effective from the beginning of next month.

This follows Malaysia hiking its toll rate for a round trip at the Iskandar CIQ from RM2.90 to RM16.50 in August.

' Destroying investments'

Singapore has a long standing policy of matching the toll rate on its neighbour’s side of the causeway.

Meanwhile, Senai state assemblyperson and DAP policy director Wong Shu Qi, ( righ t) too, warned of the adverse effects of the toll hike.

"Are Prime Minister Najib Abdul Razak and his cabinet trying to attract investors or destroy Iskandar Malaysia in its latest toll hike competition with Singapore?.

"After the latest toll hike announcement made by the Singaporean authorities, we have no doubt that Iskandar Malaysia will be the first victim of the unhealthy toll hike competition between the Malaysian and Singaporean governments," she said.

Wong, who is also Johor DAP policy director, noted that Malaysia's initial toll hike may have been in retaliation to Singapore's increase of the Vehicle Entry Permit (VEP) cost.

However, she pointed out that a VEP hike is only imposed on foreign vehicles while  thatthat of the toll hike affects everyone across the board, foreign or local.

 

“We, the people, are deeply disappointed with the irresponsible attitude exhibited by the Najib-led government, in that it has not identified any alternatives," she said.

Putrajaya looks to public transport

 

Meanwhile, Works Minister Fadillah Yusof in a statement today insisted that the toll on the Malaysian side of the causeway remains at RM2.90.

 

Instead, he indicated the remaining RM13.60 is meant for "infrastructure and facilities provided and maintained by the concessionaire. Both costs – whether toll or infrastructure – are borne by commuters.

 

Nonetheless, Fadillah ( left ) said it is Singapore's prerogative to hike the toll on its side.

 

"Singapore is a sovereign state and is entitled to make their own policy decisions which they deem correct. The toll at the causeway remains as it is, at RM2.90," he said.

 

He said the facilities on the Malaysian side include the Eastern Dispersal Link which connects the North South Expressway to the CIQ.

 

In light of the dramatic hike on both sides, Fadillah said Malaysia will work to encourage more usage of public transport between the two nations.

 

"Towards this, the Malaysian government will initiate efforts together with the relevant authorities and Johor state authorities in promoting public transportation to ensure ease of travel," he added.