Weak ringgit could boost Johor’s economy
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JPO in Kulaijaya has seen a surge in customers from Singapore, given the rise of the country’s currency against the ringgit. Photo: The Malay Mail Online
PUBLISHED: 8:45 AM, AUGUST 25, 2015
JOHOR BARU — The recent surge in the value of the Singapore dollar against the ringgit is opening opportunities for Malaysian businesses, especially for those in Johor Baru.
With the Republic’s dollar at an all-time high of RM2.97 at most moneychangers in Johor Baru yesterday (Aug 24), many are saying the strength of the Singapore dollar can only be good for Malaysia’s economy, particularly for Johor.
As things stand right now, the Singapore factor is worth at least RM50 billion (S$16.6 billion) a year to the Johor economy, said state executive councillor for tourism and domestic trade, Mr Tee Siew Keong.
“I know the impact of the Singapore dollar on the Johor economy. An average of 16 million tourists a year from Singapore visit Malaysia and a vast majority enter the country via Johor Baru. It is their first stop and assuming they spend a night or two here before moving to other places, the money they spend is substantial,” he said.
“And then, we have Malaysians living in Johor Baru who travel daily to Singapore for work. The government estimates there are 400,000 of them. Assuming they earn S$2,000 each on average a month, the (total amount) they bring home annually is staggering.”
“I have done some calculation and I think RM50 billion a year to the Johor economy, from the tourists and Malaysians working in Singapore, is a fair amount (to quote),” Mr Tee added.
He stressed now is the right time for businessmen in Johor to consider exploring the Singapore market, given the value of ringgit against the Singapore dollar.
“Agricultural products like fruits and vegetables (for example) ... there is huge potential there, and Johor being an agricultural state, we can grow enough for the export market.”
The furniture business, according to Mr Tee, is also an attractive option.
“Labour costs are cheaper here. Wood products are cheaper here and therefore, the cost of furniture like cabinets, tables and chairs are definitely much lower compared to those made in Singapore.”