To resume tax revenue, the Johor Chief Minister is set to propose a special plan to the federal government for the prompt reopening of the border between Malaysia and Singapore involving the Causeway and the Second Link.

Hasni Mohammad, the Johor Chief Minister, also known as the Mentri Besar, said the plan would be tabled to the Economic Action Council in Putrajaya on Oct. 19.

The plan is expected to help thousands of Malaysians who regularly commute between the two countries, he said.

But Hasni also highlighted that Malaysia has lost considerable tax revenue as fewer people are allowed to cross the border.

“We need to explain why the measure is necessary as we cannot continue to be in this situation as many of our people are affected, similarly the business sector as well,” he told reporters after closing the 2020 Asia International Innovation Exhibition on Oct. 11 in Johor.

Various reasons for reopening

Hasni said Johor has various reasons to consider the demand.

Johor's special position sees revenue from the two land crossings contribute up to 50 per cent of the customs’ tax collection to the country.

“The Malaysia-Singapore border is one of the world’s busiest crossings. The tax collected on our side of the Causeway and Second Link contributes to 50 per cent of the Customs Department revenue,” Hasni, 61, said.

“The closing of the border has directly impacted the lives of many who live in Johor Bahru and are unable to commute to Singapore daily for work or errands."

"Putrajaya must make a decision immediately as we cannot be in this position for much longer,” Hasni added.

Around 300,000 Malaysians cross into Singapore regularly until the Covid-19 pandemic led to a lockdown in March.

Earlier in August, Malaysia and Singapore allowed up to around 2,000 people to cross the border daily for business purposes, but travellers have to go for Covid-19 tests and quarantine at dedicated centers for seven days.

Hasni said: “When we could not open the border, I was confident and believed it would affect our country’s customs revenue collection."

“Besides, we could feel the direct effect when many residents living in Johor Baru could not travel to and from work and other matters to Singapore,” he said.

Malaysia facing increasing number of Covid-19 cases

On Oct. 4, Mustapa Mohamed, the minister in the Prime Minister’s Department (Economy), admitted that discussion on reopening the border was an agenda of the federal government, even though Malaysia is now facing increasing cases of Covid-19.

According to Mustapa, the government understands that Covid-19 poses tremendous risks, but there was also a need to address economic and health issues to rehabilitate the economy.

We deliver more stories to you on LinkedIn

Top photo via Unsplash