Ever since the Vehicle Entry Permit (VEP) for Singapore-registered vehicles entering Malaysia came into effect from July 1, some business owners are feeling the pinch — fewer Singaporean customers are walking in through their doors.

Speaking to AsiaOne, Hazel Eng, who works at Kacha Kacha, a self-photo studio located inEco Palladium in Mount Austin, said that some Singaporean clients have cancelled their appointmentsafter July 1.

Eng is among 20 workers/business owners AsiaOne spoke to gauge the effect of the new rule on businesses.

"Some customers reached out to say they couldn't secure their VEP in time and didn't want to risk any issues at the checkpoint, so they cancelled their appointments with us," said the 25-year-old.

"Others are unsure about the process or prefer to wait until things settle down before making the trip," she added.

Eng, who has been working at the studio for over four years, said she did not expect such a sudden and significant impact on customer traffic, especially since most of the studio's clientele comes from Singapore.

She said business has dropped by about 15 per cent without giving figures.

"It's like a ghost town on some days. We've lost several customers who drive to JB," she added. 

She hopes that business will buzz again once more Singaporeans get their VEP.

Cafe manager Cham Kah Chun, who runs Principal Cafe in Mount Austin, is equally worried.

He told AsiaOne thatbusiness during the weekendhas been fairly quiet, though he's uncertain whether factors beyond the VEP enforcement are contributing to the drop in footfall.

"The number of Singaporean customers has dropped based on our observations, especially since more than half of our customers are from Singapore," said Cham. 

"Even though there has only been a slight dip, the numbers gradually add up and indirectly affects our sales. It’s not a good sign for us if the lack of customers continues,"Cham said, adding that revenue has dipped by 20-25 per cent since the new rule came into force. 

'VEP doesn't deter Singaporeans'

But some businesses told AsiaOne that they have not been affected.

Alvin Tan Soon Loong, 36, a manager at Bangkok Spa in Taman Pelangi, said: "To be honest, even on weekends, we still see many Singaporeans coming in for their regular visits.

"We haven't seen any change in customer numbers, and I feel that the VEP doesn't deter Singaporeans from entering JB."

Tan, who has been with Bangkok Spa for over five years, also noted that weekend slots are mostly booked, with many Singaporean customers making appointments in advance.

Lew Jia Jun, owner of cafe Flame and Fern located in Jalan Chengai, also pointed out that business during the weekends remains consistently busy.

"I haven't noticed any difference in the number of weekend customers despite the VEP enforcement," said the 34-year-old.

"I think many Singaporeans saw it coming and were likely prepared before entering JB, since the VEP has been in discussion for a while now," he added.

Lew, who has been running the cafe for over four years, acknowledged that while a few customers missed their reservations due to VEP-related issues, the overall number is small.

He added that his business has not been significantly affected and that the change in customer flow has been minimal.

$17k in fines within first five days 

Since July 1, a total of 1,767 vehicles were inspected, and 94 warning notices were issued, Malaysia's Road Transport Department (JPJ)'s Johor state director, Azmil Zainal Adnan, told Malaysian news agency Bernama on July 6.

According to JPJ, within the first five days of enforcement, Singaporean drivers caught without a valid VEP accumulated RM57,000 (S$17,200) in fines.

As atJune 29, over 206,000 private vehicles and 3,765 company vehicles have reportedly activated their VEP tags, but 42,416 tags remain inactive.

Singaporean drivers caught entering Malaysia without avalid VEP face a fine of RM300.

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xingying.koh@asiaone.com