S'pore warns of business pullout from Johor

S'pore warns of business pullout from Johor

SINGAPORE (AFP): Singapore companies have warned they may pull out of the Malaysian state of Johor, unless traffic hold ups on the main causeway linking the two are eased, it was reported yesterday.

Singapore Chinese Chamber of Commerce and Industry (SCCCI) president Tay Beng Chuan issued the warning as Singaporean and Malaysian authorities met to discuss measures to ease the traffic jams on the causeway, a vital link between the exchange of goods and people between Malaysia and Singapore.

"If the Malaysian authorities feel that their goods should be moved only through Port Klang rather than overland to the Singapore port and companies, and this move results in delays, manufacturers will naturally be concerned," Tay was quoted by the Sunday Times as saying.

Port Klang is the chief Malaysian port near Kuala Lumpur which authorities hope to develop into a world-class port rivaling Singapore.

"Traders and investors would then have to reassess their situation seriously and consider what is the most convenient way to get their spare parts and components," Tay said.

The report also quoted Johor Chinese Chamber of Commerce secretary-general Ng Yeow Song as saying that its members also needed the causeway to carry goods into Singapore for export, as it was "not economically feasible" to use Port Klang.

The traffic backlog began last month when customs authorities in Johor imposed stringent checks on Malaysia-bound trucks from Singapore.

The SCCCI and its counterpart in Johor have urged their governments to take an active stand in finding long-term solutions to the problem, the report said.

Singapore Prime Minister Goh Chok Tong and Malaysian Prime Minister Mahathir Mohamad on Friday agreed to have government agencies concerned work together to solve the problem.