BUSINESSES in Johor Baru are anxiously waiting for the reopening of the Singapore-Malaysia border following the resumption of interstate and overseas travel for Malaysians, local commerce groups said.

The local economy relies heavily on spending by Singaporeans as well as the purchasing power of Malaysians working in Singapore, but curbs on cross-border travel for the past 19 months due to the Covid-19 pandemic have left many businesses in dire straits.

Johor Baru Chinese Chamber of Commerce and Industry president Low Kueck Shin said that 80% of the state’s beauty, catering, supermarket and entertainment industries depend on these customers.

“This is a large consumer group that comes to Johor Baru every weekend, either for vacation or to dine out with their families, or for shopping,” Low told The Malaysian Insight.

The Malaysian-Singapore Workers Task Force has said that 250,000 Malaysians are stuck in Singapore since March 18 last year, resulting in a RM14 billion loss for Malaysia. Many have also endured separation from their families in Malaysia.

Singapore’s health, finance and transport ministers have said the two countries are already discussing how to resume cross-border travel safely.

Singapore allows cross-border travel only for work and emergencies such as deaths and critical illness. Travellers must also fulfil a 10-day quarantine upon their return to Singapore.

The city-state will allow quarantine-free travel under its Vaccinated Travel Lane scheme for eight countries beginning next Tuesday, but Malaysia is not included.

However, when the border is fully reopened, Johor South SME adviser Teh Kee Sin said at least 20% of the companies in the five major economic sectors in Johor Baru would have closed down.

The five major sectors are tourism, retail, catering, hotels and service industries.

“Since March 18 last year, at least 80% of the businesses in the above-mentioned areas have been affected. Moreover, most companies in these areas are small and medium-sized enterprises.

“Their reserves are almost exhausted that even if the border is reopened, they will have no money left to operate,” Teh said.

He considers Johor Baru an “economic disaster area” because of the epidemic and its high dependence on Singapore.

“The epidemic has brought the tourism industry in Johor Baru to a halt, when before, hotel occupancy rates used to be high every weekend.

“The retail industry is also dead as shopping malls are not able to operate without Singaporean customers and the consumer power of Malaysians working in Singapore.

“In the service industry, car repairs, car wash, movie theatres and beauty salons, all of which were popular with Singaporean customers, have also been greatly affected,” Teh said.

He added that even if things on Malaysia’s side look hopeful, Singapore is still dealing with a spike in cases, despite its high vaccination rate.

“Initially, I was hopeful (for the reopening of borders). However, it looks a bit difficult with the repeated outbreak seen in Singapore recently.

“I estimate that even if the border reopens in the future, it will take at least another year for Johor Baru to return to its pre-pandemic economic conditions,” Teh said.

Chinese Entrepreneurs Association of Johor vice president Edward Chia observed that many businesses have hung up for rent or sale banners in their shops.

He added that the continued border closure is also affecting separated couples and causing family problems. – October 15, 2021.