SINGAPORE: During this time of year, shops in Johor usually see high footfall from shoppers, especially those from Singapore. This year is proving to be different, however, with fewer shoppers than in past years.
Many business owners are crediting this to the strength of Malaysia’s currency, the ringgit, which has been performing well throughout the year.
While during most of 2025, 1 Singapore dollar traded at about RM3.30, at present, the exchange rate is S$1 to RM3.17. The currency has seen a stellar trajectory. As recently as early 2024, the ringgit had reached a historic low, when it was at its lowest in 26 years, trading at SG$1 = RM3.51.
The currency’s strength has been attributed to Malaysia’s robust economic growth and recent government reforms. The introduction of policies that are investment-friendly specifically for semiconductors, electric vehicles, and digital technology is also a major factor.
While many expected Singaporean shoppers to continue to cross the border to buy items, dine, and patronize local businesses as the Singdollar continues to be strong, The Star said in a Dec 5 report that this is not the reality, at least for some shops.
Business owners told The Star that they began to see a decrease in visitors from Singapore in November, though the piece added that the unpredictable weather has also contributed to fewer shoppers of late. Many parts of Southeast Asia, including Malaysia, has been affected by storms and flooding.
According to The Star, a business owner said the crowd from Singapore is missing, even on weekends. “This is probably the worst year-end crowd we have seen since the Covid-19 pandemic.”
Many believe the strong ringgit is responsible for a 30 to 40 per cent drop in shoppers from the city-state.
Some listed the weather, heavy Causeway traffic, and the Vehicle Entry Permit requirement as other factors that have affected Singapore shoppers.
The Malaysian portal reported that the drop in Singapore visitors started gradually but became pronounced after Deepavali, worsened by heavier and more unpredictable rain in Johor Bahru this year.
Upgrading works in the town area has also worsened the traffic, making the area less attractive to shoppers, he added, saying that when combined, the factors created a “perfect storm.”
An outsider who visits the state regularly said the weekends are full of Singaporeans coming over to shop and eat out. They not the difficulty to get a parking lot while the shelves at the supermarkets are also almost emptied out. But this time, it was far from that. /TISG
