CAUSEWAY TRAFFIC JAMS

Mr Hawazi Daipi asked the Minister for Trade and Industry (a) what were the causes of the recent Causeway jam and what did the Government do to resolve the problem; (b) what more can be done to resolve the problem earlier; (c) what will be done in the future should such jams recur either at the Causeway and/or the second-link bridge; and (d) what plans his Ministry has to ensure that Causeway jams will not cause serious traffic jams in Marsiling Estate and some parts of Woodlands New Town.

Mr Tay Beng Chuan asked the Minister for Trade and Industry whether the Government has taken the necessary actions to alleviate the frequent massive traffic jams at the Singapore-Johor Causeway and whether the Singapore and Malaysian governments will hold a meeting to resolve the problem and find a long-term solution to ensure the free flow of goods, services and people between Singapore and Malaysia.

Mr Zulkifli bin Baharudin asked the Minister for Trade and Industry what is the impact the Causeway jam has caused to companies in Singapore and whether he will ask the Malaysian government to take steps to ensure the smooth flow of traffic on the Causeway.

The Minister for Trade and Industry (Mr Lee Yock Suan): Mr Speaker, Sir, as Questions 4, 5 and 6 are related, may I answer them together?

Mr Speaker: Yes, you may.

Mr Lee Yock Suan: Thank you. Mr Speaker, Sir, this problem began in late September when the Johor Customs implemented stringent checks on both outgoing and incoming vehicles. The result was massive congestion at the Causeway with long lorry tailbacks from Johor Customs Tanjong Puteri Complex.

Normally, checks are conducted on a selective basis in line with the Best Customs Practices' code advocated by the World Customs Organisation, of which both Singapore and Malaysia are members. The sudden change in procedure resulted in long delays of up to seven hours to clear the Johor Customs.

The jams at the Causeway have affected bilateral trade and especially manufacturers with plants situated in both Singapore and Johor. Parts and components are sent from Singapore to Johor on a daily basis to be assembled, and then transported to their Singapore plants on a Just-in-Time basis (JIT) for final assembly and distribution.

Any impediment to the free flow of cargo along the Causeway disrupts production schedules, and directly impacts the Just-in-Time concept of modern factory operation. To overcome this, companies on both sides of the Causeway had to increase their inventories and rent more lorries to transport parts and components, resulting in higher operating costs.

I raised this issue with my Malaysian counterpart Rafidah Aziz at the ASEAN Economic Ministers' Meeting in Kuala Lumpur last month. Prime Minister Goh subsequently discussed the issue with the Malaysian Prime Minister during bilateral talks at the recent Commonwealth Heads of Government Meeting in Edinburgh. The two Prime Ministers agreed that the relevant Ministries would look into the matter to see how it could be resolved. Foreign Minister Jayakumar also followed up on the subject with his Malaysian counterpart Abdullah Badawi who said that he would instruct the relevant Malaysian ministries to get in touch with their Singapore counterparts to deal with the problem.

On the ground, our Government agencies at the Woodlands Checkpoint did all they could to alleviate the traffic jam. The Traffic Police increased their manpower deployment at the Checkpoint and Causeway to manage traffic, as well as to facilitate the movement of Johor-bound lorries by allowing them to occupy up to two lanes on the Causeway, instead of the usual one.

The situation in the past two weeks appears to have improved. Nevertheless, we will continue to monitor the situation and, if necessary, work with the relevant Malaysian authorities to ensure that the problem does not crop up again.

The opening of the second crossing next year will help to reduce traffic at the Causeway and minimise the traffic queues on both Woodlands Road and the Bukit Timah Expressway. LTA is also building a new road system to serve the new Woodlands Checkpoint. Part of the work includes improving the road scheme around Woodlands Centre, so that traffic bound for the Woodlands Checkpoint will be separated from traffic bound for Marsiling Estate and Woodlands New Town. The new road system will be completed in 1999.

Dr Lee Tsao Yuan (Nominated Member): May I ask the Minister whether he anticipates that the recent Causeway jam will have a negative effect on companies' decisions to relocate their investments to Johor?

Mr Lee Yock Suan: Yes, I am sure it will have some impact because this casts a doubt on the feasibility of having plants distributed in various parts of ASEAN, especially between Singapore and Johor. The assumption of manufacturers is that they can source parts and components easily from either Singapore or Malaysia for their factory in the other location. So it is important to facilitate the free movement of parts and components.

Mr Chiam See Tong: I read in the papers that the Singapore Customs stepped up their checks for GST purposes. Did that not increase the problem of the jam?

Mr Lee Yock Suan: This is done on the other side of the Causeway for the cars coming back. It is perfectly in order for us to check the cars because, with the GST and with the decline in the value of the Malaysian dollars, it is important to make sure that we are collecting the GST which is due from the Singapore shoppers who have gone across the Causeway. And there is a limit of $200 per adult for those who go for less than 24 hours and half that amount for children. So the Customs were just doing their job when they did the checks.

Mr Hawazi Daipi (Sembawang): Sir, can I ask the Minister whether any Singapore companies now operating in Johor have asked for EDB's assistance to relocate elsewhere?

Mr Lee Yock Suan: Sir, I do not have specific details, but I believe there may be some.