“It’s really crazy,” Lee said of the exchange rate. “It’s like a bonus. During Chinese New Year, I buy soft drinks and beer, and I invite friends over to my house, and this really helps. I can buy more.”
Mr Lee is one of many Singaporean expats who are taking advantage of the unprecedented strength of the local dollar when crossing the border into Malaysia as the cost of living rises back home.
The Singapore dollar has appreciated to a record high of 3.55 ringgit after five consecutive rounds of policy tightening until October 2022, and the central bank’s efforts to curb inflation may pave the way for further currency appreciation. There is.
Meanwhile, the ringgit has been hit by weak exports and Malaysia’s large interest rate differential with the United States. Years of equity capital outflows and political turmoil have further soured sentiment towards Asia’s worst-performing emerging currency.
“This is a simple measure of relative living standards,” said Koon Goh, head of Asia research at Australia New Zealand Banking Group. “Based on trends, the question is when.” It is possible to reach 4. ”
‘Demand is high’: Singaporeans turn to cheap Malaysian travel as ringgit plummets
‘Demand is high’: Singaporeans turn to cheap Malaysian travel as ringgit plummets
The Malaysian currency has depreciated by about 3.5% against the US dollar this year, further deepening its decline over the past three years.
The ringgit is not the only currency at an all-time low against the Singapore dollar. Buoyed by investor confidence in the economy, the currency rose to record highs last month against the Philippine peso and Indonesian rupiah.
Many consumers in Singapore are acutely aware of this move in the run-up to the Lunar New Year holiday. Local websites offer detailed price comparisons for traditional snacks such as pineapple tarts and pineapple tarts. Bakukuwa – Barbecued Pork Feast – In Singapore dollars and ringgits, it shows how cheap things are across the border.
I think I paid about S$10 per box – easily double the price in Singapore.
Among those benefiting from Singapore’s strong currency is real estate agent Sylvester Yee. Associate Group Director of Propnex Realty Pte. Ltd. He recently visited KSL City Mall in Johor Bahru, just a stone’s throw from the border, to stock up on festive goods.
“We have a lot of customers who want to buy Lunar New Year goods to express their gratitude,” said Yi, who bought 20 boxes of snacks such as pineapple tarts and “love letter” rolls.
“I think I paid about S$10 for a box. It would easily cost twice as much in Singapore.”