JOHOR BARU, June 5 — The Johor Malay Chamber of Commerce of Malaysia (DPMMNJ) said the federal government’s decision to scrap the Kuala Lumpur-Singapore High Speed Rail project (HSR) will preserve Johor Baru’s unique economy with Singaporeans,

DPMMNJ president Datuk Syed Ali Tawfik al-Attas said that traders in the Johor Baru city welcomed the move as the project would have a negative impact on their business.

"If the project proceeds, Singaporeans will definitely bypass Johor Baru resulting in a decline of business for the city’s traders,” he said at a media conference at the chamber’s headquarters in Larkin here today.

Syed Ali explained that Johor Baru is unique as apart from residents, local businesses also depended on Singaporeans who come to shop and eat here.

"Thousands of Singaporeans come to Johor Baru, especially on weekends and public holidays to shop or visit their relatives and friends.

"If the HSR project proceeds, most of the Singaporeans might skip Johor Baru and take the train straight to Kuala Lumpur,” he said.

Syed Ali, who comes from a family of Johor Baru-based merchants and religious personalities, gave the example of Ayer Hitam, noting that the town used to attract motorists using the old Johor Baru-Ayer Hitam trunk road.

"Businesses in Ayer Hitam town then declined with the opening of the Machap intersection of the North-South Expressway in 1990s,” he said, adding that shops in the central Johor town used to open round-the-clock catering to mainly travellers in cars and busses.

In the past, Ayer Hitam town had been a landmark stop for motorists travelling in and out of Johor as motorists, lorry drivers and express buses will stop in the town to refuel, for food and also a short break before continuing their journey.

The town was also once well-known for its domestic local produce such clay pottery and other cottage industries, which the new Pakatan Harapan (PH)-led state government aims to kick start the economy for Johor’s central and northern regions.

Syed Ali said instead on spending RM100 billion for the HSR project, the government should look at ways to improve the existing public transportation, including the existing KTM train services.

On May 28, Prime Minister Tun Dr Mahathir Mohamad had announced the axing of the HSR, which he claimed cost RM110 billion ― far more than the RM72 billion stated by former Prime Minister Datuk Seri Najib Razak.