Tuesday

Will you stop going to Johor Bahru because of the increased toll charges?



I was thinking about this issue and came to these conclusions....

Firstly, even if our government were to match the toll charges, Singaporeans will still go to JB because the additional travel cost is still less than the amount of money saved when eating/shopping in JB.

The total toll cost for Singapore and Malaysia = RM16.50 x 2
= RM33
= SGD 13.2 @ 2.5 Fx

The savings I get from eating and shopping in JB for a day would have been more than enough to offset this cost. If you can get more friends to join you on the trip, the cost per person will decrease further.

Secondly, assuming the prediction that Singaporeans stop going to JB come true, businesses in JB will just adapt and cut their prices to attract more Singaporeans in. This is just common business sense as Singaporeans' expenses contribute a large portion of JB's economy and they're unable to find alternate customers due to their geographical constraints. So ultimately, total spending will still remain constant.

I personally don't believe that people will just stop going to JB because both side of the causeway have increased their toll charges. This is so as the increase is simply too insignificant. While your overall spending will increase, Singaporeans will still be able to save more money shopping/eating/enjoying in JB than in SG.

Do you agree?

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