As evidenced by the lack of plane tickets in your Instagram account lately, leisure travel has been nothing but a distant dream for the last year or so.
Since the coronavirus loves travelling as much as we do, many countries have had to impose border restrictions to keep visitors out until the escalating pandemic dies down.
This move has mainly affected two groups:
- those working in the airline industry
- those who use the word “wanderlust” in their online social media profiles
But there’s another group of individuals who have been badly affected by border restrictions: money changers.Â
After all, why would you visit a money changer if you’re not travelling?
12 Money Changers in S’pore Close with Many Losing Money Since No One is Travelling
12 money changers have been forced to shutter permanently as a result of the coronavirus pandemic, according to The Straits Times.Â
At the moment, there are around 270 money changers left, and most are struggling to stay afloat.
Speaking to ST, one owner in Bukit Batok says there are days where he doesn’t get any customers at all.
On the days where clients do turn up, he makes a profit of around $2 or $3.
Another owner said she used to have 400 to 500 customers daily but now has fewer than 20.
One of the drawbacks of operating a money changer in a mall is that many owners are bound by contractual obligations to operate during the stipulated time.
This means that they’ll have to sit all day at their store, even if there are no customers to attend to.
According to Mr Oli Mohamed, secretary of the Money Changers Association (Singapore), nearly 70% of money changers are small businesses. Cash flow has become tight due to significant expenses.
This, as you can imagine, has made it impossible for some to continue operating.
Consequently, 37 money changers have temporarily ceased their business since April last year, when the circuit breaker was imposed.
Five of them have since resumed operations, but 12 have closed permanently.
Rental & Manpower Costs
Forget profits; some money changers can’t even cover their rental expenses due to the dwindling customers.
These owners also have manpower costs to cover, which would have been unfeasible for some without the Jobs Support Scheme (JSS).
CNY Usually Good For Business
Typically, the days leading up to Chinese New Year are pretty profitable for money changers, as many Singapore residents and foreign workers head abroad for the holiday.
Many also send money back home during that period.
So, money changers might see a small uptick in customers in the next few days.
However, it may not just be the Covid-19 pandemic that money changers have to grapple with.
Becoming Obsolete?
At a time where everything is being digitised in a bid to increase contactless transactions, money changers may soon become obsolete.
In the future, people may turn to digital applications rather than brick-and-mortar companies to book their currencies.
With both border restrictions and an accelerated digitisation of cash, money changers face an uphill battle to stay relevant and survive.
Featured Image: SOUTHERNTraveler / Shutterstock.com
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