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Sunday June 1, 2008

Johor traders fear losses

By MEERA VIJAYAN


JOHOR BARU: A group of Johor businessmen is against the petrol ban on Singapore registered vehicles for fear it would affect their businesses.

They contended that the ban was unnecessary as all Singapore vehicles have to have their petrol

More kilometres for money: Singapore-registered vehicles rushing to fill up their tanks with cheaper petrol across the causeway at a petrol station located near the Johor Customs before the blanket ban ruling.

tanks 75% full when leaving the country.

“To ban them from buying petrol is not fair. Perhaps they can be allowed to buy petrol at unsubsidised rates,” said Johor Baru Tiong Hua Association general manager Eric Ku, after a meeting attended by 16 Chinese-based business associations in the state.

On Monday, the Government announced that petrol would not be sold to foreigners within 50km of the country’s borders effective May 30.

Ku blamed the bulk of the losses faced by the Government on Thais driving into the country to fill up on petrol and fishermen who don’t use their subsidised diesel for fishing, but sell it to foreigners.

He said that more than 30 representatives attended the meeting to discuss the ruling.

Ku said that special lanes could be provided at petrol stations to cater to foreign registered vehicles.

Johor Baru Chinese Chamber of Commerce and Industry deputy president Wong Ton Yang said that he estimated at least 5,000 businesses in the city would be affected by the petrol ban.

“It is hard to estimate the losses businesses stand to face, but it will run into millions,” he said, added that many businesses in the city depended heavily on the spill-over effect from Singaporeans.

Wong said that the association would arrange for an urgent meeting with the state government to ask the Government to formulate a better plan to deal with the petrol subsidy issue.

Malaysian Indian Business Association president P. Sivakumar agreed, saying the Government should be careful when reviewing policies.

“They shouldn’t have done this. It is a free market and petrol has always been an attraction to draw Singaporeans here,” he said.

Malay Chamber of Commerce Malaysia president Syed Ali Alattas said that the decision had to be reconsidered carefully as genuine tourists who came and spent money in the country should be allowed a petrol quota of 20-30 litres per trip.

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