THE opening of the vaccinated travel lane (VTL) between Singapore and Malaysia has given businesses in Johor a new lease of life, small and medium-sized enterprises (SMEs) in the state said.

The VTL, which permits quarantine-free air and land travel from November 29, finally allowed Malaysians stranded in the republic to return home after nearly two years.

Now that the VTL is opened, eateries are hoping that business will pick up. However, they are also concerned about the newly discovered coronavirus strain, Omicron.

Yaw Boon Choon, president of the South Johor Hawkers and Petty Traders Association, said traders in the state have been waiting for more than a year for the VTL to be announced and are hoping that it will stimulate business.

He said with the return of Johor folk from Singapore, there will be more family gatherings and shopping trips, which will boost business.

“Food courts are already seeing bigger crowds and hawkers have reported business improving by 10% to 20%,” he told The Malaysian Insight.

Yaw said he hopes that the returning Singapore tourists will help boost Johor’s and Malacca’s economies.

Johor, which depends greatly on tourists from Singapore, was dealt a heavy blow when the borders were closed.

SME Association of South Johor president James Tan Tian Chong, meanwhile, is worried that returning Malaysians may bring in the Omicron variant.

“We still don’t know the risk that the new variant poses. If there is an outbreak of this variant, this may lead to a new wave of infections,” he said.

Tan said since the VTL only opened on November 29, it is difficult to gauge how it will boost Johor’s economy.

However, this is a good start, he added.

Health Minister Khairy Jamaluddin said travellers entering Malaysia via the VTL must arrange for a Covid-19 self-test on the third and seventh day after entering the country.

He said all Singaporean visitors must also report their test results through the MySejahtera app, regardless of their port of entry.

These measures are being added as a precaution against the Omicron variant, he told a press conference in Putrajaya yesterday.

The Omicron variant is said to have up to 50 mutations, which has stoked fear worldwide that it may be more transmissible than the Delta variant.

The World Health Organization has warned that the Omicron variant could pose a very high risk and is “probably more transmissible” than the Delta variant.

The government also postponed the country’s transition to the endemic phase in light of the new development.

“Eighty per cent of businesses in Johor are in the service industry while the rest are in the manufacturing, electronics, chemical, furniture and tourism sectors,” said Tan.

“While the VTL can stimulate the economy, SMEs are currently facing inflation, labour shortages and rising operation cost.”

He said SMEs have been facing one hurdle after another and the road to recovery will be a steep one.

Shipping prices, too, have increased by 30%, making it even harder for SMEs, he added.

Pinning hope on Singapore tourists

Tee Siew Kiong, an adviser to Johor Menteri Besar Hasni Mohammad, said the VTL has been operating smoothly and will help revive Johor’s economy.

“Johor and Singapore are mutually dependent. Many Malaysians who work there have not returned home for a long time,” he said.

Tee said the state hopes to get the epidemic under control to allow Singapore tourists to enter via the VTL.

“No one has experienced this epidemic. We hope the Health Ministry will supervise it closely even when the standard operating procedures have been relaxed,” he said.

Jarod Chia, chairman of the Johor branch of Malaysia Budget and Business Hotel Association, said the state is not among the top five destinations among Malaysians.

Johor’s tourist sector is reliant on Singaporeans, he said, adding that even with the return of Malaysians from the republic, business in malls remains slow.

“Before the epidemic, around 300,000 people travelled via the causeway daily. The VTL only allows 1,500 people to do so,” he said.

“I hope the government will keep a close eye on the epidemic so that there are no new outbreaks, which may lead to the closing of the VTL, further impacting businesses in the state.”

Even with the VTL, hotels have not seen an uptick in business, as most returning travellers will go home to their families.

The interstate travel has also not helped as occupancy rates in the state remained low with only 20% of rooms occupied.

“Only hotels near the sea such as Desaru and Kota Tinggi saw a high occupancy rate of 60%,” said Chia.

“Hotels in the city rely on Singaporean tourists. We hope they will be allowed to enter Malaysia soon.” – December 2, 2021.