calvintaneng

Weak ringgit might pressure certain counters that import raw materials or capital goods. But weak ringgit is also a great blessing for all exports & tourism.

1) Exporting counters like electronic, electrical & furniture counters, and also mosaic tiles should do well.

2) Export of labour from Johor to Singapore should also do well as Strong Sing Dollar translates to even higher ringgit exchange

3) It is also drawing more tourists to shop & visit Malaysia in general and Iskandar in particular.

I know of Johor workers who go over to Singapore for work in the morning and return to Johore in the evening. They even bring their own food and drink from Johor and don't spend a single cent in Spore. For transport Spore Company buses fetch them to and fro daily.

One Singaporean retiree is taking SBS Bus 170 from Bkt Timah to Johor Jalan Wong Ah Fook. He comes over for lunch & buy milk & oat and all other necessities which is up to 50% cheaper than Singapore, Then he would "ta pau" curry fish head for Rm33 to share with his family back home. He said curry fish head costs the same price in Spore (200% more in price after conversion).

So this trend has been reported by Singapore newspaper statistics today:

Since ringgit has depreciated so much against the Sing Dollar since year 2010 the Consumption Spending index in Singapore has fallen year after year

In Year 2010 Consumption Spending in Spore was 9.2%
Then in year 2011 it dropped to 8.2%
For year 2012 it went down to 6.7%
And 4.8% for 2013
Then it dropped further to a new low of only 3.4% last year.

But what happened?

There is a long bee line queue of cars going into Iskandar every weekend and public holidays.

So the crash of the ringgit will Lift Up The Economy of Iskandar & Johor

2015-11-01 21:15