IT is back to business as usual in Johor after the border between the state and Singapore reopened five months ago.

The state’s economy is recovering, while hotels and eateries are starting to recoup losses suffered during the two-year pandemic lockdown.

Foreign investors are also coming to the state and up to June this year it had raked in RM60.9 billion.

Malaysian Association of Hotels Johor chapter chairman Ivan Teo said occupancy rates in the state stood at 75% during the school holidays while occupancy rates at four- and five-star hotels were at 75% during the weekends. 

During the holiday period, it can go up to 90%, Teo said. 

While there were teething problems right after the borders reopened, everything is back on track now, he said. 

“On weekends, occupancy rates are at 80% to 90%, and on weekdays it is between 30% and 40%. 

“But we still need to give discounts to attract visitors,” he said.

Around 70% of guests are Singaporeans while locals contribute 30%, Teo said. 

“While the industry is recovering, thanks to Singaporean tourists, we are still not fully back to pre-pandemic levels.” 

This, he said, is mainly due to the shortage of workers, which still continues to plague the industry. 

“We need migrant workers for housekeeping, kitchen hands and heavy lifting.” 

Most hotels are facing a 30% shortage in staff, Teo said. 

“It’s not just us, but other sectors as well. But, if we have more manpower, we can provide better services. 

“Our business is selling rooms, with more workers, we can increase our prices.” 

Besides Singaporean tourists, Johor also draws South Koreans who come to play golf in the state, he said.

Boom in business for night market vendors

South Johor Hawkers and Petty Traders Association chairman Yow Boon Choon said night market traders and hawkers are also seeing increased business volume. 

From earning RM200 a night previously, they can make between RM600 and RM700 a night now, Yow said. 

“During the school holidays, some of them can make up to RM2,000 a day.” 

Those who are seeing their business boom are located at the Taman Pelangi, Johor Jaya and Taman Ungku Tun Aminah night markets, he said.  

“The Singapore dollar is strong. Malaysians working there are willing to spend when they come back. 

“About 40% of visitors at night markets are Singaporeans while the rest are locals,” he said. 

With inflation, Yow said businesses have no choice but to pass the cost to consumers, but Singaporeans are still willing to buy. 

Johor Chef Association President Ang Swee Kiong said Chinese restaurants are starting to see business improve. 

“While banquets have decreased, Malaysians returning to the state on the weekends still come out to eat with their family,” Ang said.

The association’s members own 1,000 restaurants in the state. 

“Business volume has gone up by 80%, but it can get better. Raw materials are costlier and we are also facing a labour shortage as the strong Singapore dollar is driving Malaysians to work in Singapore.

“We hope the government will recruit foreign workers for the sector soon,” Ang said.

Singaporeans account for 40% of the customers in Chinese restaurants, he said. 

“We can still cope with our overheads due to the high volume. But, we have to hire part-timers with high wages, otherwise we can’t cope.”

Investors eyeing Johor

State Investment, Trade and Consumer Affairs Committee chairman Lee Ting Han said Johor saw RM60.9 billion in investments, which is half of the RM112.1 billion nationwide. 

Out of the total RM60.9 billion raked in by Johor, which was the highest investment value in the country from January to June, investors from China contributed some 60% or RM40 billion, Lee said. 

“The investments mostly went into setting up data centres as a lot of cost goes into the land (acquisition) and sophisticated facilities for such services.” 

As of June, 1.8 million people have visited Johor, making it one of the most visited states in the country, he said. 

“We still need to look at the data for the second half of the year to determine whether the economy has recovered, but the forecast looks good.” 

Besides Chinese investors, the state also saw South Korean and Japanese investors as well as American and British investors. 

Investment for the first quarter of the year in Johor stood at RM2.2 billion, while it grew to RM57 billion in April to June. 

Lee said, since the reopening of the border and economy, multinational companies headquartered in Singapore are investing in Johor, finalising four data centres while six more are under negotiation. 

“Data centres can improve economic efficiency, create employment and provide higher salaries. This is the first phase of the plan while the second phase is expected to be launched in 2024. 

“We expect more international companies to relocate here when the data centres are up and running.” 

The petrochemical sector will also see growth as more refining activities take place in Pengerang.

“Johor is also focusing on the electronic and electrical as well as medical equipment facilities. 

“These projects are concentrated in southern Johor while agriculture and manufacturing are located in the north.” – September 17, 2022.