SGD Strengthens Against MYR Again; Now at S$1 to RM3.41

Last Updated on 2023-05-30 , 10:45 am

As every Singaporean knows, of the top ten things to do in Singapore, number one is going shopping at JB. 

Since COVID-19 measures relaxed, Singaporeans have resumed flocking to Malaysia in search of the best deals. 

If you’re one of these people, it’s time to change some money, because the Malaysian Ringgit just hit another low against the Singaporean dollar—the exchange rate is now SGD1 to RM3.41.

SGD Strengthens Against Ringgit Again

On 24 May, the Singaporean Dollar (SGD) strengthened against the Malaysian Ringgit again, peaking at SGD1 to RM3.4118 at 4.57 pm Singapore Time. 

This peak surpassed the one that happened earlier this month on 2 May, when the exchange rate between the two currencies hit S$1 to RM3.4077.

24 May also marks the fourth time the exchange rate exceeded S$1 to RM3.40, with the other three occasions happening in late 2022 and 2023.

According to Google, as of 25 April, the exchange rate currently stands at S$1 to RM3.4175—rounded up, that’s RM3.42. 

If you’re planning to go to Malaysia soon, now’s definitely the right time to head to the money changer.

Expected To Go Lower

Since the start of the year, the value of SGD has already increased by 4.15% against the Ringgit.

However, the Ringgit is projected to fall even lower, to a new low of RM3.45 against the SGD.

This was predicted by Maybank’s chief forex strategist Saktiandi Supaat, who foresaw the drop since last November.

He cited a number of reasons for the Ringgit weakening, including slower economic growth in China, a significant trade partner to Malaysia, and weaknesses in prices of commodities like crude palm oil and crude oil.

Trade with China accounted for 17.1% of Malaysia’s total global trade in 2022, so China’s economy is bound to affect Malaysia. 

According to Mr Saktiandi, recent numbers for Malaysia’s exports showed a decrease of 2.6% compared to the same period last year, resulting in concerns regarding the full year’s outlook. 

This negative trend in exports is expected to impact the Ringgit, too.

Exchange Rate Good News For M’sians in S’pore

For Malaysians working in Singapore, the exchange rate is likely good news. 

However, this may not be good news for Malaysia—the country is currently facing a “brain drain” problem, with many Malaysians emigrating to Singapore.

Earlier this year, Malaysia’s human resources minister revealed in a dialogue session that 1.13 million Malaysians, out of 1.86 million who have emigrated overseas, reside in Singapore. 

This poses a brain drain issue for the country—the minister’s remarks raised questions on how to retain talent in Malaysia.