Thursday, January 7, 2010

Will this cause a decline of Wealth for Johor Bahru?

On Jan 7th 2010, there was an article which I came across, titled “No Petrol Subsidy for Non-Citizens From May 1”. The article’s emphasis is just as the title, the increase in price of petrol for non-citizens. Johor Bahru has been visited by many Singaporeans who went there to purchase cheap petrol and make some round of shopping in the town
With this new regulation in place, it might just mean that Singaporeans that are looking for cheap petrol, may not go over to Johor Bahru anymore. With this group of buyers gone, Malaysia would see quite a great drop in number of people who find no reason to go shopping in Johor again .
This justify a re-consideration by the Minister , as johor will feel the pinch .
When the new Johor Custom was opened early last year , there was a big divert of traffic in the city , and former shops which were bustling with good business ,suddenly see an out flow of their turnover ,as traffic was divert direct to Johor town ,giving the city a miss . Business came down , and now they will be affected twice , but this time almost the whole town will be affected .
On top of that, the subsidy of the petrol is going to be sub-categorised throughout the Country . This means that not all Malaysians are getting their petrol subsidy also . Only those who are in the lower income range, and can afford cars with only small capacity engines will not be affected much .
On the foreigners end, there really still is not much lost for them as well , especially for Singaporean with their Strong dollar .
Going by the exchange rates, overall, prices of oil are still cheaper in Malaysia, in comparison to prices in Singapore. Therefore, the decline in wealth for which Johor will face will be imminent at the start. However, in longer terms, Johor will still be in good wealth as it is now.
Maybe the new Integrated Resorts ,opening in Singapore soon will also attract some tourist from other countries whom visit Singapore to cross the borders to get their Passport Chopped with the Malaysia Immigration chop , then maybe visit Maybe Iskandar , or visit the city to boost some shopping sales , left-out by those whom not happy with the new Petrol prices.
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With Reference to the article;

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