One problem related to air bag on-off switch has been reported for the 1998 Toyota Corolla. The most recently reported issues are listed below.
Flashing air bag light - I purchased a 1998 Toyota corlooa in July 1998. Begining in sept of 98 I began taking it to the dealership about the flashing air bag light. It was taken on 9/29/98, 8/18/99, 8/15/00, 8/14/01. The last visit the light started blinking before I left the parking lot. I had to pull it back in the bay for them to re-fix it. I was told each time I took it in that the air bags were functional even if the light was flashing. I took the car back last month and was told that there was a parts bulletin issure by Toyota back in 1999 that required Toyota dealerships to install a wire harness on these wires in order to make them stop blinking. This was never done on my car even though all four times I took it in it was still under warrenty. Now they want to charge me $200. 00 to do this. I was also told at this time that the air bags are not functional when the light is flashing.