Lest you’re not aware, the Malaysian Ringgit has been experiencing a strong performance recently, with the exchange rate moving from 1 SGD to 3.4 MYR in July to the current rate of 1 SGD to 3.21 MYR.
This shift has led to an interesting trend among Singaporeans who own properties in Malaysia and collect rent in Ringgit.
Singaporean Property Owners in Malaysia Take Advantage of Stronger Ringgit
According to local money changers, there has been a noticeable increase in the number of Singaporeans converting their Ringgit to Singapore Dollars.
A partner at Crante Money Changer in Chinatown told Shin Min Daily News that she reported a 20% increase in Singaporeans exchanging Ringgit for SGD, the opposite of what we’ve been doing in the last few months.
“These are mainly Singaporeans who have properties in Johor and collect rental income in Ringgit,” she explained. “They have Malaysian bank accounts where they deposit the Ringgit, and now they are taking advantage of the strong currency to convert it to SGD.”
On the other hand, she noted that Malaysian workers in Singapore are converting less Ringgit compared to usual, with an average decrease of 5% to 10%.
The owner of another money exchanger also confirmed the trend, stating that he has seen a 20% increase in Singaporean property owners coming to him to convert their Ringgit. However, he believes that the real surge will occur when the Ringgit drops even further.
What Happened to Ringgits?
The Malaysian ringgit has recently strengthened against the Singapore dollar due to a combination of domestic and international factors.
One of the primary reasons is the positive growth of the Malaysian economy under Prime Minister Anwar Ibrahim’s leadership. The implementation of new policies, including subsidy cuts and economic reforms, has boosted investor confidence and supported the ringgit’s growth.
Additionally, Malaysia’s political stability has facilitated more effective policymaking and implementation, further enhancing confidence in the currency.
Another significant factor contributing to the ringgit’s strength is the recent interest rate cut by the US Federal Reserve.
This has led to an influx of “hot money” returning to Malaysia from the United States, causing the ringgit to appreciate. The currency’s rise has been substantial, with the ringgit gaining about 8% against the Singapore dollar in just six months, moving from around 3.50 to 3.201.
You can watch this video to know “link” between ringgit and USD:
This trend is expected to continue, with some analysts predicting that the ringgit could potentially reach 2.90 against the Singapore dollar by the end of the year.
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