As Malaysian ringgit strengthens, Singapore shoppers in Johor reap less savings
The ringgit’s appreciation is also bad news for Malaysian export-oriented sectors, such as gloves and electronics, analysts say
Since losing his job two years ago, Singaporean Gurpal Singh has been making weekly trips by car across the border to the Malaysian city of Johor Bharu to buy cheaper groceries and fuel.
But as Malaysia’s currency continues to strengthen, bargain-hunting visitors from Singapore like him are getting less value for their purchases.
On Tuesday afternoon, the Singapore dollar was trading at 3.11 against the Malaysian ringgit, down from 3.15 in early January and 3.26 in October last year.
Economists have attributed the ringgit’s recent gains to the weaker US dollar, and improving investor sentiment over Malaysia’s economic outlook, political stability and its government’s efforts to tighten spending.
Gurpal, who spends US$152 per trip on average in Johor Bahru, said he would continue to make the trip up north despite the stronger ringgit.
“It’s definitely less savings than before, but for me it’s manageable. I lost my job in 2024, so this is actually a lifeline for my household,” he told This Week in Asia.