THE falling value of the ringgit has been a boon for businesses in Johor as Singaporeans flock there on most weekends and on school holidays to shop, pushing the state out of the Covid-19 doldrums faster than expected.

While business might be sluggish on weekdays, business for Johor city centre’s hotels have come alive during the weekends with the occupancy rates reported as high as 80% and even 100% during longer weekends and on school holidays in the island republic.

One businessman happy with the uptick in business for the hospitality industry is Malaysia Business Hotel Association (MyBHA) deputy president and Johor chapter chairman Jarod Chia.

He has every reason to be delighted as at least 30% of Singaporeans who have crossed the causeway to shop, wine and dine in Johor, were reported to have stayed in hotels during their weekend getaway.

Chia told The Malaysian Insight that “all hotels” in Johor’s city centre “were fully booked” during Singapore’s school holidays in May.

The surge, however, has brought a new problem and it has driven Singaporeans who hate being stuck on the causeway for hours to alter their weekend plans.

“The severe congestion has discouraged many Singaporeans from coming over,” Chia said.

Instead, they have chosen to go to Thailand, Vietnam and other nearby countries where they still get good value from their strong dollar, Chia added.

“Fly in, fly out, no traffic jams. In fact they don’t necessarily have to come to Malaysia for their weekend getaway.

“Thailand, Vietnam and other Southeast Asian countries are close by.”

Chia said even though efforts are being made to solve the congestion at the causeway, including a personal intervention by Johor Menteri Besar Onn Hafiz Ghazi, it will take time.

“The congestion is not something Johor can solve by itself,” he said referring to the Customs and Immigration Departments which are under federal purview.

“Anyway this congestion has been going on for years and I don’t think it will be solved overnight.”

Onn had proposed five short-term solutions to ease the congestion, especially during peak hours.

He proposed all counters to be opened during peak hours and the Immigration Department to solve their lack of manpower and overtime payments problems.

Onn had also taken issue with the maintenance of public facilities, like toilets and restrooms, by licensed contractors at the causeway and the second border crossing, instructing the Immigration Department and the Land Transport Authority to monitor the cleanliness of the facilities.

Another Johor businessman delighted by the business boom is Johor Kitchen Association president, Ang Swee Kiong, who told The Malaysian Insight that restaurants in the state have reported a 20% increase in business.

“It’s not only Singaporeans spending their money here. Malaysians who are working or living in Singapore are also spending their hard earned Singapore dollars.

“They return home every weekend and when they do, they take their families out to eat.”

Johor Bahru Coffee and Wine Merchants Association acting chairman Yong Wa Kong, said Singaporeans coming over in large numbers when the Singapore dollar is stronger than the ringgit is nothing new.

“It happens all the time,” he said.

“They usually come over on Friday night before heading home late on Sunday.”

Yong bemoans the causeway congestion.

He said business would be much better if entry is made quicker.

Singaporeans, he said, no longer just cross over to grab a quick bite or fill up their cars with subsidised petrol before crossing back.

“They are spending much more. Now every weekend or holidays, we see a long line of cars at the Sultan Iskandar building (the customs, immigration and quarantine complex).

“And we’re also seeing many making U-turns to head home rather than getting stuck in the jam for hours.”

He added there is also the fear among those who manage to get into the state that they could find difficulty leaving.

“These are those who cut their weekends short because very early on Sunday mornings they head home to beat the expected congestion later in the day.”

Yong said weekend traffic congestion in the city centre has been a boon for businesses outside it.

He said business was booming in restaurants in places like Mount Austin, one of the most popular residential estates outside the city centre. –  July 9, 2023.