It’s well known that Johore is heavily relying on neighbour countries’ investments and this is how Iskandar region’s boom in recent years. However, the recent EDL toll charge imposed at complex CIQ is killing the goose that laid the golden-eggs.
Singaporean buyers and local Malaysians who work in Singapore have always been the two main groups that support the property market in Iskandar region.
According to the statistic provided to me in last assembly, Singaporean owners constitute 76% of the foreign buyers in 6824 unit houses we sold to foreigners last year.
While it was increased merely 3% from 2012, yet, Singaporean buyers have always constituted 70% to 85% of the foreigner buyers in Johor property market since 2008 even before Iskandar region is booming.
While property agents are still releasing optimistic news regarding the property boom, we must remind the government that the property bubble burst may come even faster when both the government and people are not ready to bear the consequences.
The future of Iskandar property market will be even gloomier if the real wages of local labour and Malaysian migrant workers in Singapore are reduced as no alternative to save money from paying tolls. Less disposable income after paying toll will lead to fewer purchasing and market downturn. Everyone including workers who work in Johor Bahru will be adversely affected.
To support the growth at Iskandar region, Federal and state policies must ensure the growth of Iskandar region and real wage increase of Johoreans and Malaysians or face the worst outcome.
It’s hence deeply regrettable that BN government hadn’t even had comprehensive study before imposed the striking charges on all vehicles except motorcycle. Furthermore, they only announced after people were hit by the toll charge that SPAD would study on how to improve Johor Bahru public transport.
Nevertheless, I welcome the announcement that several agencies including SPAD, Ministry of Works, Ministry of Transport and Johore state government would work closely to find a solution to ease the burden on Johoreans.
Yet, I must remind the BN government the solutions should come first and not after announcement was made public. This lesson must be learnt and not be done again and again.