The
VEP and Toll fees hike is turning into another mini crisis or pain among the
transport operators and travelers on both sides of the causeway. When one hiked
the other party also wants to hike. It can be Singapore first or Malaysia first, doesn’t matter. If
Malaysia does it, Singapore’s standard reaction will
be, we will match the hike.
For
the party who made the first move, one can quite safely deduce that they must
have done some homework, some analysis on the numbers and the reasons for hike.
Let’s hazard a guess on the reasons why LTA decided on the fee hike. The first
point is likely that the govt needs money and someone was told to look for more
revenue sources. Can the CPF issue be a factor where some changes will take
place to return some money to the people to appease them? A second reason is to
relate the cost of driving on our roads with comparatively higher COEs that the
Singaporeans are paying. A third reason, too many vehicles on the road and a
need to limit foreign vehicles coming in. But this third reason is contrary to
the need for economic growth, to have more economic activities, more people and
vehicles in the island. Raising fees would definitely lead to lesser vehicles
coming here if they could avoid it, lesser Malaysians driving in for leisure,
and lesser Malaysians shopping here and thus affecting the Great Singapore
Sale. Oh, GSS is over already I think.
A
fourth reason, would this affect those Singaporeans buying properties or
setting up factories at Iskandar? What kind of impact? Likely to be negative,
but is it good or bad for Singapore?
LTA
must have played with the different combinations on what would be the desired
fee hike and the acceptable consequences. So lesser vehicles, lesser people
coming in are acceptable trade offs for the increased in revenue. And if the
Malaysians retaliate by raising fees on their side, even lesser vehicles and
people coming in, but with a corresponding match in toll fee hike, the
increased in revenue is good.
What
would be the motivating factors for the Malaysians to do so? The first is
political. KNN anyhow raise VEP to make Malaysian vehicles pay more. Must hit
back to show them we cannot be makan or bullied. Another reason, well, using
the political excuse will be popular with the people, but better still, can
raise revenue also. This is like killing two birds with one stone. Can tekan
the Singapore govt and appease the
Malaysians. Got balls!. The third reason, or haven’t thought of, what if this
leads to lesser Singaporeans coming into Malaysia? Would it affect the
tourist dollar, would it affect the sales of properties at Iskandar and the
bigger plan of turning Iskandar into a shining pearl? What about the ordinary
Malaysians crossing over to work and the children taking public transport to
schools? This last question going to be susah.
What
both sides must have thought through would be the likely effect of choking up
the causeway and the second link. People, goods and money will not flow so
smoothly through these two links. It would definitely affect the economy the
wrong way. It is like throwing a spanner in the works by both sides.
Why
would the two govts want to do these things? In Singapore’s case, boh lui is a
likely to be a big factor. For the Malaysians, it is like trying to fight a
battle only to lose a war.
Kopi Level - Green