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JOHOR BAHRU, Nov 1 \u2014 Despite the Malaysian ringgit surging to its strongest level against the Singapore dollar in over a year, Singaporean visitors say it was not enough to deter them from their regular trips across the Causeway for shopping, dining, and services.<\/p>\n
\u201cFor me, it doesn\u2019t matter because I don\u2019t spend much here,\u201d said Edmund Lee, a Singaporean finance worker who crosses into Johor Bahru every few weeks for groceries and meals.\u00a0<\/p>\n
Like many others, he feels the \u201cvalue for money\u201d proposition of Malaysia remains intact, Channel News Asia<\/em> reported.<\/p>\n This resilience from its most important tourism market is a crucial buffer for Malaysia as it navigates the complex economic impact of its resurgent currency, which is creating a sharp divide between domestic winners and struggling exporters.<\/p>\n The ringgit\u2019s rally has been stark. After sinking to a 26-year low against the US dollar in February 2024, it has bounced back to a one-year high. Against the Singapore dollar, it has strengthened from around RM3.50 in January 2024 to RM3.19 this week.<\/p>\n Lifeline for Johor<\/strong><\/p>\n Businesses in Johor Bahru that rely on Singaporean customers have seen little to no impact.\u00a0<\/p>\n At a car wash less than a kilometre from the Woodlands Causeway, manager Ramesh Ponnayah says the number of Singaporean patrons has been unchanged.<\/p>\n \u201cDemand from Singapore continues to be strong,\u201d confirmed Ivan Teo, chairman of the Malaysian Association of Hotels\u2019 Johor chapter.\u00a0<\/p>\n He said that while Johor is bracing for a 25 per cent dip in tourism from more currency-sensitive markets like Indonesia and Thailand, the steady flow of Singaporean visitors, who have higher purchasing power, is a saving grace.<\/p>\n Domestically, the stronger ringgit is a clear boon. Importers like garment maker Chua Hunt are enjoying lower costs for materials from China, allowing them to upgrade their quality.\u00a0<\/p>\n Consumers are also benefiting from increased spending power, with motorcycle dealers reporting more customers upgrading to bigger bikes.<\/p>\n However, the rally is a significant headwind for Malaysian exporters.\u00a0<\/p>\n Economists say industries like furniture and gloves now face a \u201cdouble-whammy\u201d of a strong currency making their products more expensive for foreign buyers, coupled with existing US tariffs.<\/p>\n Analysts attribute the ringgit\u2019s strength to two main factors: the anticipation of interest rate cuts by the US Federal Reserve, which makes emerging market currencies more attractive, and the Malaysian government\u2019s successful fiscal reforms, including subsidy rationalisation, which have boosted investor confidence<\/p>\n<\/p><\/div>\n