DUTY-FREE SHOPPING ZONE IN JOHORE BAHRU

Dr Kanwaljit Soin asked the Minister for Trade and Industry how the creation of a duty-free shopping zone in Johore Bahru will affect Singapore.

Mr Yeo Cheow Tong: Currently, import duties are levied on most goods imported into Malaysia. Popular consumer items like foodstuff, textile and garments, household items and footwear, attract import duties ranging from 2%-30%. If Johore proceeds to set up a duty-free shopping (DFS) zone, these goods will become cheaper and more attractive to consumers, including Singaporeans.

The retail trade in Singapore will have to continue upgrading itself in order to remain competitive. Retailers will have to offer better value to local consumers and tourists and ensure that they remain competitive in terms of price and quality, and level of service.