Exit levy: More bane than boon for Johor? TEAMCAR - The RM20 exit levy on foreign cars, expected to come into effect next month to defray petrol and fuel subsidies, could be a double- edged sword. The losers will be Malaysians and the economy on this side of the Causeway.

The move has not gone down well in Johor due to its far-reaching implications on the retail, hospitality and property sectors. Visitors from across the border, including Malaysians working there and driving Singapore-registered cars, contribute significantly to the local economy.

It is a complete reversal of the situation in the north, where owners of Thai-registered vehicles enter the country primarily to top up their empty tanks with subsidised fuel.

They are a major contributor to the local economy as they buy or rent houses and spend a sizeable portion of their wages on shopping and entertainment. Because they are paid in Singapore dollars, they are also less susceptible to the ups and down of the Malaysian economy and are, therefore, a stabilising factor for local businesses.

Like it or not, the Johor economy is heavily dependent on Singapore patronage and the fear is that the exit levy, if imposed, could result in these PRs moving to Singapore.This prospect is real because there would be no savings to be made for these Malaysian workers, and their position is made worse by the daily traffic crawl at the Causeway.

The levy could also be an irritant for Singaporean day-trippers who frequent Johor Baru. They are price-sensitive and even a mere RM20 for a car load of them could put them off from making the trip.

And this could hurt Johor Baru badly. NEW STRAITS TIMES  ¶ 10:21 PM