SINGAPORE: Johor business owners are preparing for possible losses as complications with the Vehicle Entry Permit (VEP) could stop Singaporeans from visiting.
Starting Oct 1, the VEP requires all foreign vehicles entering Malaysia to have a radio frequency identification (RFID) tag.
However, many Singaporean motorists have shared their frustrations over the painful application process, including the complicated online registration and trouble securing appointments for RFID installation.
This may lead to many Singaporeans changing or cancelling their travel plans to Johor, which could hit local small and medium-sized enterprises (SMEs) hard.
P. Sivakumar, president of the Johor Indian Business Association, said that claims from some Singaporeans about VEP application difficulties, especially for those not tech-savvy, discouraging them from visiting Johor, are “unfounded”.
According to the New Straits Times, he said that businesses in Little India, located in the city centre, are likely to keep attracting customers from Singapore.
He explained that most of the shoppers in this area are Malaysians working in Singapore, while Singaporeans are likely to continue flocking to the area because of the appealing prices and favourable exchange rates.
He also added that traders might not face much of an impact from the VEP issues, as many easy public transport options are available for visitors of Little India.
However, some business owners who live farther from the city centre have different views.
Wong Nee Siew, who runs a café in Taman Sutera, about 20 km from the downtown area, mentioned that many of his Singaporean customers are considering avoiding trips to his café until the VEP problems are resolved.
He said, “If they stop patronising my café, it will impact my business,” as such Mr Wong urged the government to make the VEP application process easier.
Jimmy Leong, president of the Malaysian Tourist Guides Council, noted that while the initial problems might temporarily decrease the number of Singaporean visitors, the government is working to address these issues.
Mr Leong said Chief Minister Onn Hafiz Ghazi had announced plans to add more VEP application centres and allow some registrations by post. Johor and federal governments have heard the concerns of frustrated drivers and are aiming to improve the system.
The tourism sector, which relies heavily on Singaporean visitors, expects a temporary drop in foot traffic until the application process becomes smoother.
Mr Leong expects that by October, there will be fewer Singaporean vehicles in Johor, affecting many popular sectors with foreign tourists. However, he believes things will return to normal once more VEP applications are processed.
During the National University of Singapore Society’s (NUSS) 70th Anniversary Lecture, Mr Ghazi said he would “personally address” the Singaporean motorists’ VEP concerns.
Despite this, retailers, restaurants, and hotels that depend on Singaporean tourists are worried about a possible drop in revenue.
Razak Mahadi, a hotel manager, explained that Johor Baru usually sees many visitors from Singapore on weekends and holidays. He noted that the uncertainty around the VEP could make Singaporeans rethink their trips to Johor, as they “do not want the hassle.”
He added that Singaporean tourists are important to Johor’s economy, as they spend millions at local businesses every year.
With the VEP enforcement approaching in just a few days, many worry that a long-term drop in Singaporean visitors could cause serious financial strain for the tourism and retail sectors in the state.
However, Mr Mahadi believes the situation will improve once the VEP application process is improved.
With the deadline nearing, Singaporean motorists like Jannah Mansor are frustrated with the complicated application process. Many of her friends have echoed similar concerns, frustrated with the difficulty in getting appointments and navigating the online registration system.
Ms Mansor said that even with new installation centres, booking an appointment has been “difficult” and the registration portal “confusing.”
To meet the rising demand, the Road Transport Department has opened two new locations in Johor Baru where Singapore-registered vehicle owners can install their VEP tags.
This is to boost the daily installation capacity by five times. These new locations are meant to speed up the registration of VEP tags and the installation of VEP RFID tags. Each centre can serve 400 to 800 vehicles every day.
RTD director-general Datuk Aedy Fadly Ramli said the new locations would allow them to install VEP tags for 1,500 vehicles each day, which will help meet the high demand from Singaporean vehicle owners who must follow the new regulations.
He explained that the initiative aims to simplify the process for Singaporean vehicle owners registered online, making it easier for them to install their VEP RFID tags. RTD officers will be present at these locations to assist vehicle owners throughout the installation process.
He urged foreign vehicle owners to quickly register, install, and activate their VEP RFID tags before the enforcement date to avoid issues when entering and leaving Malaysia. /TISG