Ringgit Malaysia (RM) recently dropped to an all time low against the Singapore Dollar (SGD) which as we’ve reported previously, caused Singaporeans to rush to their local money changers so that they can benefit from the low exchange rate. So much so, that it created a major shortage of RM among Singaporean money changers.
While many sees the RM’s decrease in value as something bad and makes it as an example about the state of the economy in our country, others see a silver lining at every cloud. The newly appointed Menteri Besar (MB) of Johor, Datuk Onn Hafiz Ghazi is certainly the latter as he recently commented that the decrease of RM’s value compared to SGD would benefit small businesses and traders in the state after two challenging years caused by the Covid-19 pandemic.
The menteri besar of johor, datuk onn hafiz ghazi.
As reported by Sinar Harian, the Johor MB said yesterday (30 April 2022) that the RM’s drop in value against SGD will encourage more Singaporeans to come and spend in Malaysia, especially Johor. Onn further elaborated that Singaporeans would have a higher buying power due to the strength of SGD and will continue to spend in Johor.
Hence, the influx of Singaporeans into Johor to spend is beneficial for the local Johor economy as the context of RM being devalued is insignificant to local traders and businesses, as what’s important is that more people will be spending in Johor. Furthermore, Onn Hafiz said that the issues of inflation and currency exchange rate are only temporary and asked Malaysians to join in prayers together so that it would not last long.
What do you guys think of the statement made by the Johor MB? Share your thoughts with us in the comments.
Also read: SGD1.00=RM3.15, S’pore Money Changers are Running Out of RM as S’poreans Rush To Buy
