Business chambers voice out concerns over toll hike

Two business chambers representing companies in Malaysia and Singapore have issued a joint statement warning that 'drastic increases' in Causeway charges will have a detrimental economic impact, reported The Straits Times.

The Singapore Chinese Chamber of Commerce and Industry (SCCCI) and the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) also called for an 'extensive study...to alleviate the burden on various parties'. The ACCCIM is the SCCCI's counterpart in Malaysia.

The statement was issued after a meeting yesterday in Batu Pahat, Johor, where both chambers solicited feedback from members on the issue.

The two business chambers claimed that while the increases in the VEP fee and toll charges will raise government revenue and reduce traffic congestion, the drastic increases could deal a big blow to businesses of both countries.

Sectors such as transport, tourism, food and beverage, hospitality, retail and manufacturing are likely to be hit the hardest. "At the same time, these drastic increases will have a domino effect on the prices of consumer goods, add to the burden of people and have a definite impact on their consumption ability," added the business chambers.

Adjustments are acceptable, but the hikes should not be made too drastically or hastily, the statement added. The chambers urged both governments to 'solicit relevant views and feedback' from the business community and general public.