Ringgit gains yet to curb Singaporeans’ spending in Malaysia, but more Malaysians could head south

SINGAPORE/JOHOR BAHRU – Although the stronger ringgit has made it slightly more expensive for Singaporeans to shop and spend across the Causeway, many still see good value in Malaysia.

At the same time, the firmer currency has made Singapore more attractive to Malaysians, who now need fewer ringgit to fund their shopping trips here.

The ringgit has been strengthening against the Singdollar in recent weeks, with the Malaysian currency at 3.1792 on Nov 22. That is around

its strongest level so far in 2025.

The currency traded above RM3.30 per Singdollar earlier in 2025.

But regular visitors to Malaysia say the stronger ringgit will not stop them from travelling across the Causeway.

Mr Song Seng Wun, an independent economist who goes to Johor for the food, noted that Singaporeans and residents generally still feel that the Singdollar is getting them “good value”. For example, a plate of noodles costs around RM10, which is $3.15, he said.

Travel is also convenient, as Mr Song can simply hop on a Causeway Link bus that takes him directly to popular spots in Johor Bahru.

“Tap on and tap off the bus. It is so easy, much like how you tap on and off the public buses in Singapore,” he said, adding that many Singaporeans even take their shopping trolleys with them on the bus.

Mr Song added that other services Singaporeans enjoy in Malaysia, such as car washes, cost RM18 per wash, which is around $5.70 at the current exchange rate, compared with a basic car wash in Singapore that costs between $10 and $35.

Sales manager Arifz Rudyman, who recently went to JB on Nov 13, when the exchange rate was RM3.1746 per Singdollar, noted that “the savings are still there as long as it is hovering around RM3 against the Singdollar”.

A regular visitor to Malaysia, he added that there are also other perks that make the trip across the Causeway worthwhile, even with the ringgit at stronger levels.

One such perk is access to food options that are unavailable to Malay/Muslim diners in Singapore.

The original Ramly burger is from Malaysia, he said, adding that while one can eat Ramly burgers at a pasar malam (night market) here, the taste and flavour can “never beat the Ramly burger in JB”.

And, when he feels like having Chinese cuisine, Mr Arifz said he can head to Dolly Dim Sum, which is one of the halal F&B establishments in JB.

The sales manager also goes for massages in JB because they are cheaper there and “the quality is so much better if one chooses the right spa”. He pays about RM128 for a two-hour spa session. Even at current ringgit levels of RM3.17 per Singdollar, it would only cost him around $40. A comparable spa in Singapore costs about $88 an hour, he noted.

But Mr Arifz would be more hesitant to go to JB if the ringgit appreciates to RM2 to the Singdollar.

Ms Tang Guek Peng, a Malaysian admin executive who came to Singapore more than two decades ago, when the ringgit was RM1.46 against the Singdollar, noted that the ringgit has a long way to go before it hits that level again. 

The stronger ringgit is thus unlikely to stop her from taking her daughter to JB for weekend enrichment classes, she said.

Across the Causeway, hour-long ballet lessons twice a week cost her RM210 a month, compared with similar classes that range from $300 to $600 a month in Singapore, she said. Likewise, she pays RM110 a month for her daughter’s weekly one-hour piano lesson, compared with the $300 to $600 typically charged in Singapore.

So while the ringgit has strengthened and her daughter’s fees have inched up in Singdollar terms, this still does not change the fact that fees in Malaysia remain relatively cheaper, she noted.

Currency fluctuations for property buyers 

Still, Singaporeans with ringgit-denominated loans for Malaysian properties could face more volatile monthly repayments given the ringgit’s current strength. 

Mr Alson Kong bought his corner terrace house in JB in 2012, taking a ringgit-denominated loan and paying about RM2,700 in monthly mortgage instalments. At an exchange rate of RM2.40 per Singdollar, his RM2,700 instalments cost him about $1,125. At today’s rate of around RM3.17, they now work out to roughly $850 per month.

But he noted that the purchase would not be a good financial investment if he were to sell today, as he would get back fewer Singdollars in return. A hypothetical gain of RM500,000, for instance, would translate to more than $208,000 at RM2.40, but only about $158,000 at RM3.17.

Mr Sani Hamid, a director at financial advisory platform Financial Alliance, said long holding periods mean property investors cannot easily time their entry and exit to benefit from favourable currency movements. As a result, “the vast majority of Singapore investors in Malaysian properties have typically had to suffer some level of ringgit forex losses”, he said.

Strong ringgit draws Malaysians to Singapore

The strengthening ringgit could also see more Malaysians visiting the Republic.

Mr Mohamad Farid Yaacob is one example. The 37-year-old customer service executive drives his Perodua Aruz from Kuala Lumpur’s Bangsar suburb to Singapore at least once a month to shop, dine and attend weekend events.

Earning around RM5,000, or $1,600, a month, he said he often finds shopping in Singapore “cheaper” than in Malaysia. Some imported groceries – such as chocolates, nuts and certain snacks – can be cheaper in Singapore than in Malaysia, especially when they are on discount, he added.

Hawker meals in Singapore can sometimes also be cheaper than those in Kuala Lumpur, even after factoring in the currency conversion. Mr Farid has even opened a Singapore bank account, where he deposits some savings in Singdollars for his trips to the Republic. He added that Singapore’s Vehicle Entry Permit charge of $35 a day is waived on Saturdays, Sundays and Singapore public holidays, which helps lower his travel costs.

For Ms Suria Mohd Sidin, a Johorean who works as a brand manager for a property developer, visiting attractions such as the Singapore Zoo has become more enticing.

The 38-year-old, who regularly takes public transport to the Republic to buy items such as perfumes in Mustafa Centre, a shopping complex near Little India, reckons she will be coming to Singapore more often to shop as the ringgit appreciates. “I feel it’s so much cheaper there than in Malaysia,” she said.

Ms Suen Bohn, president of the Malaysian Association in Singapore, told The Straits Times that if the ringgit continues to hold its strength, Singapore can expect more short-term visitors from Malaysia – particularly for pre-planned events such as major international concerts, celebrity tours and the annual Formula One Singapore Grand Prix.

She added that special product launches and the opening of flagship outlets of food and beverage brands also serve as strong pull factors. “The buzz factor adds value to a short trip. The ‘must-see-now’, the limited-edition product launch, the world-class summit – these create a powerful pull for Malaysian visitors who don’t want to miss out,” she said.