JOHOR BARU: Business operators in Johor are anticipating losses as complications surrounding the application process for the compulsory Singapore-registered Vehicle Entry Permit (VEP) may discourage them from visiting the state.
The VEP which is set to be enforced on Oct 1, requires all foreign vehicles entering Malaysia to be registered with an RFID (radio frequency identification) tag.
However, Singaporean motorists have voiced their frustrations over the difficulties in securing the necessary permits, which includes complicated online registration process and the difficulties in securing appointments for RFID installation, which may leave many unable to meet the Oct 1 deadline.
This is anticipated to cause a ripple effect on Johor-based small, medium entrepreneurs, with a huge number of Singaporeans opting to postpone or cancel their travel plans to the state.
However, Johor Indian Business Association president P. Sivakumar said claims by some Singaporeans that difficulties in applying for the VEP, particularly for those who are not tech-savvy, will deter them from visiting Johor are unfounded.
Business owners operating in Little India in the city centre are expected to continue enjoying a steady stream of customers from Singapore.
"A huge majority of Little India customers are actually Malaysians working in Singapore, while Singaporeans are expected to still flock the area due to the irresistible prices compared to the republic, and its favouring exchange rates.
"Maybe, traders here are not affected as there are several easy public transport modes to Little India," he said.
Meanwhile business owners operating further from the city centre claimed otherwise.
Wong Nee Siew, a café operator in Taman Sutera, some 20km from the city centre, said his customers, mostly Singaporeans, had voiced their frustration in applying for VEP.
"My Singapore patrons are telling me that they will avoid driving in until this VEP issue is resolved… if they stop patronising my café, it will definitely impact my business," he said.
He urged the government to simplify the application process immediately.
Malaysian Tourist Guides Council president Jimmy Leong said the VEP application hurdles may temporarily reduce the number of Singapore travellers to the state, especially among those who preferred to drive in.
He said Menteri Besar Datuk Onn Hafiz Ghazi has announced plans to ease the process, including adding more VEP application centres and allowing some registrations to be completed by post.
Both the Johor and federal governments have acknowledged the feedback from frustrated motorists and are working to improve the system.
Business sectors reliant on Singaporean customers, particularly tourism, expect a temporary dip in visitors until the application backlog is cleared.
"Certainly, by October, Johor shall be seeing less Singapore-vehicles due to this factor and to a reasonable extent it would impact the various sectors frequented (foreigners)," said Leong.
He said, however, despite the short-term impact, the situation is expected to normalise once more VEPs are approved.
On Sep 19, while speaking at the National University of Singapore Society's (NUSS) 70th Anniversary Lecture, Onn Hafiz pledged to personally address Singaporean motorists' VEP concerns.
However, feedback from retailers, restaurants, and hotels, which have long relied on Singaporean tourists claimed that they are bracing for a downturn in revenue.
Hotel manager Razak Mahadi said Johor Baru's malls and small business entrepreneurs typically see a surge in visitors from across the border during weekends and holidays.
"It's not just the VEP, it's the uncertainty around it. Singaporeans do not want the hassle, and many are now rethinking their weekend getaways to Johor."
Razak said Singaporean tourists are key contributors to Johor's economy, spending millions at local businesses annually.
With the enforcement of the VEP just days away, many fear that a prolonged reduction in Singaporean visitors could lead to widespread financial strain for the state's tourism and retail sectors.
However, Razak also believes the situation will improve after the VEP application mechanism is improved.
Singaporean Jannah Mansor said the application process remains too cumbersome, especially with the Oct 1 deadline fast approaching.
She said many of her friends who owned vehicles and frequent Johor had expressed frustration over the difficulty in securing appointments and the overall application process.
She said the registration process took too much time and the appointment slots were fully booked.
"Even with the new installation centres, getting an appointment has been difficult, and the online registration portal is too confusing."
The Road Transport Department opened two new locations in Johor Baru for Singapore-registered vehicle owners to install their VEP tags, a move that will boost its capacity to do so by five times.
The additional facilities were to speed up the VEP tag registration and VEP RFID installations.
The centres can each serve between 400 and 800 vehicles daily.
RTD director-general Datuk Aedy Fadly Ramli said the additional locations would increase the total installation capacity to 1,500 vehicles per day, helping to accommodate the high demand from Singaporean vehicle owners who need to comply with the new regulations.
"This initiative aims to facilitate the installation of VEP RFID tags for Singapore vehicle owners who have registered online.
"RTD officers will be on-site to assist with the process at these new locations," he said.
He called on foreign vehicle owners to promptly register, install, and activate their VEP RFID tags before the enforcement date to avoid complications when entering and exiting Malaysia.