Tuesday, July 30, 2013

Malaysia Ringgit at 15-Year Low against Singapore Dollar!

This is the most catching title of today!  Malaysia Ringgit has fallen to 15-year low against Singapore dollars at SGD1.00=RM2.548.  Ok, this is the bank rate for large amounts, probably at your neighborhood money changer, the rate should be roughly SGD1.00=RM2.50.

There were news reports saying many Singaporeans are taking this opportunity of low rate to go to Malaysia and spend there.

Is it really cheaper?  Ok, exchange rate aside, Malaysia is cheaper in many aspects.  For example, a 3-D movie ticket in JB costs you RM22.00?  That's less than SGD9.00.  While the same ticket in Singapore will cost you SGD14.00.  Well, Malaysia is in general cheaper, not due to the recent fall of its currency.

If you do your maths, from 2.45 to 2.50, the difference is only 5 cents.  If you spend RM1000, then you only have a RM50 savings from the fallen exchange rate alone.  This lower rate will only benefit people who need to change from SGD to RM in large amounts.  For people like you and me, who only visit Malaysia once in a long while, and spend less than RM200, the exchange benefit is total insignificant. 

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