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.