JOHOR BARU, Dec 21 – In the face of the tough global economic situation, a price war has broken out among 245 members associated with the Johor Freight Forwarders Association (Joffa).
The grave situation had prompted its chairman Toon Teng Fatt to call on the 245 members not to engage in a price war.
“We must stand united and face the tough times ahead together. There is no need to start slashing prices because, in the end, it will not benefit us.
“Already, business is down and if our members try to outdo each other in terms of freight charges, we will suffer. Already some of us are barely able to cover cost in the light of the current global crisis,” said Toon at the association’s 28th Anniversary dinner here last night.
Toon admitted that business among the association’s members had dropped 40 per cent since the world financial crisis began three months ago.
“It’s simple. People are not buying and therefore manufacturers are slowing down their production, which means there is less to transport now,” added Toon.
He also called on the Royal Customs and Excise Department to play its part in helping members of the association to overcome the challenges faced by them.
“They (Customs) can help by expediting the inspection of goods at their checkpoints because by doing so, we can save on the overtime costs,” added Toon.
The Director of the Royal Johor Customs and Excise Department, Subre Ishak, who was present at the dinner, later promised to look into the matter.
“We are here to help them. Not to make things difficult because I understand Joffa’s problem,” said Subre.
Source: Malaysian Insider