JB businesses report 30-40% drop in Singaporean shoppers as stronger ringgit reduces currency appeal
PETALING JAYA: Business operators in Johor Bahru are experiencing an unexpectedly quiet December, with significantly fewer Singaporean visitors despite the typically bustling year-end holiday period.
Merchants across the city attribute the decline primarily to the Malaysian ringgit’s improved performance against the Singapore dollar, which has eroded the currency advantage that traditionally draws thousands of shoppers across the Causeway.
According to The Star, Robin Jian, whose family has operated a popular café for three generations, described the situation as unprecedented for this time of year.
The businessman noted that November and December typically represent peak season for JB establishments, but current conditions tell a different story. He estimates the stronger ringgit has directly contributed to a 30 to 40% decrease in visitors from Singapore.
According to Jian, currency exchange rates have historically played a crucial role in cross-border shopping patterns, and the current trend reflects this sensitivity.
While currency remains the primary concern, business owners point to several additional challenges affecting visitor numbers.
Weather conditions have proven particularly problematic this season. Speaking to the English daily, S. Sures, a 52-year-old local businessman, explained that while JB typically experiences monsoon rains during year-end, this year’s downpours have been unusually intense and difficult to predict.
Infrastructure development across the city has also created complications. Sures noted that numerous simultaneous construction projects have exacerbated traffic congestion and reduced parking availability, creating what he termed a “perfect storm” of discouragement for potential visitors.
The implementation of the Vehicle Entry Permit (VEP) system for foreign vehicles has added another layer of complexity to cross-border travel.
Even regular visitors have noticed the stark difference in atmosphere. A Selangor resident who frequently travels to JB expressed shock at how subdued the city felt during a recent weekend visit.
Typically, weekends see such heavy Singaporean traffic that parking becomes extremely difficult and supermarket shelves are nearly emptied, he observed. However, his latest trip revealed a dramatically quieter environment.
Local shopkeepers confirmed to him that the ringgit’s strengthened position against the Singapore dollar was largely responsible for the reduced footfall.
It is learnt that a shopping mall popular with Singaporeans appeared predominantly filled with Malaysian shoppers on Saturday afternoon, December 6.
Recent trading data shows S$1 purchasing between RM3.17 and RM3.19, compared to approximately RM3.30 during the same period last year.
This shift means everyday purchases have become proportionally more expensive. An item that previously cost S$5 now effectively costs around S$5.20 when accounting for the exchange rate difference.
Checks on December 6 showed rates hovering near RM3.17 to S$1.
For Singaporeans who typically spend entire days shopping, dining, and refueling in JB, these incremental increases compound quickly throughout their visit.
The cumulative effect of these factors has resulted in what JB business operators characterise as their quietest holiday season in recent years, excluding the COVID-19 pandemic period.
The situation represents a significant shift from previous years when the year-end period reliably brought waves of Singaporean shoppers seeking better value across the border.
