‘It’s a lot cheaper’: Singaporeans plan holidays as Malaysian ringgit plunges amid US debt woes

Singaporeans are taking advantage of the weak ringgit for more trips across the border, triggering a shortage of the currency

Malaysians are demanding answers to the ringgit’s poor performance, which could be due to factors including a less aggressive monetary policy, an economist notes

Reading Time:4 minutes

Vehicles form a long queue to enter the Woodlands Checkpoint in Singapore before crossing the causeway to Malaysia’s southern Johor state. Singapore and Malaysia share one of the busiest overland borders in the world. Photo: AFP

Published: 8:35pm, 30 May 2023Updated: 4:19pm, 31 May 2023

Jacob, a management trainee in Singapore, visits neighbouring Malaysia about once a month for activities such as car shows, road trips or just a midnight snack. The Singapore dollar hitting an all-time high against the ringgit last week prompted a change of heart.

“I’ve changed more spare ringgit at such a good rate, I probably wouldn’t mind popping in when I’m free and there’s no [traffic] jam,” said Jacob, who declined to give his full name.

Communications specialist Haikel Fahim, who crosses the border once a week, echoed the sentiment.

“I’m paying about a third of the price that I would be paying [for petrol] in Singapore, so it’s a lot cheaper,” said Haikel, who usually heads to Johor Bahru to refill his petrol tank and run errands.

The Singapore dollar broke its record against the Malaysian ringgit last week as it hit 3.41, Bloomberg data showed, a 6.16 per cent increase from the 3.20 mark about a year ago. While Singaporeans rejoiced, the development has prompted Malaysians to demand answers about the ringgit’s poor performance.