JOHOR BARU, Dec 2 — Malaysian hawker, Sim, was a step away from shopping for contemporary prawns throughout a vacation in the Pontian district of Johor, solely to be stopped by the exorbitant value quoted by the vendor.
The 63-year-old Johorean, who declined to offer his full title, claimed that the costs had been instantly jacked up after the Singaporean vacationers who got here earlier than him blurted out: “Wah, so low cost!”
“I needed to purchase prawns, and I heard the vendor quoted the Singaporean group RM20. But as soon as it was my flip, the vendor quoted me RM30,” he instructed TODAY.
Although this occurred some years in the past, the story stays contemporary in his thoughts. While Sim mentioned he had no drawback welcoming Singaporeans to journey round his house state, he had just one request from them.
“It’s higher to maintain quiet when shopping for issues. There’s no must say so loudly that the costs are low cost. What about the locals who don’t suppose the costs are reasonably priced?” he mentioned.
Sim’s expertise will resonate with many Johor residents even immediately, significantly these residing in the state capital, as Johor Baru has been a favorite vacation spot of Singaporeans for the longest time.
The perennial “fowl individuals” behaviour — characterised by the steady exclamations of “low cost, low cost, low cost” — discovered its means into the limelight not too long ago when a Singaporean monetary content material creator publicly urged Singaporeans to be extra humble and delicate to Malaysians.
It’s not simply the phrase “low cost” that runs the danger of being deemed insensitive, but additionally the basic behaviour that some Singaporeans exhibit in their pleasure to buy good bargains in Johor Baru as a result of the weaker Malaysian ringgit.
True sufficient, throughout TODAY’s go to to Johor Baru final weekend (Nov 26 and 27), this reporter heard a lady, presumably from the Lion City, proclaiming loudly: “Wow, the costs right here. How a lot are they divided by 3.5? In Singapore greenback.”
The store visited by the mentioned lady was simply reverse the chwee kueh (steamed rice desserts) stall operated by Sim alongside Jalan Tan Hiok Nee, 1km away from the Customs, Immigration and Quarantine (CIQ) Complex.
“There’s good and unhealthy when Singaporeans come over. They have greater spending energy, which is sweet. But they need to simply be quiet about it,” mentioned Sim.
Johor Baru residents TODAY spoke to appeared disapproving of Singaporeans treating the metropolis as a discount haven, as there may be a notion that the value of living has soared in the previous yr as a result of extra vacationer arrivals from Singapore and their capability to spend.
However, opposite to their views, Johor enterprise house owners and economists mentioned that Singaporean spending isn’t the foremost purpose why Johoreans are grappling with rising prices.
They cited different international and home components, comparable to the nation’s financial woes and insurance policies Malaysia adopted throughout the pandemic in addition to present geopolitical tensions, for the inflation confronted by Johoreans.
Singaporeans have been flocking to Johor for buying and vacation following the easing of Covid-19 restrictions and the reopening of borders, with prolonged visitors jams at the checkpoints a frequent incidence throughout the weekends and public holidays.
For instance, throughout the lengthy weekend from Aug 31 to Sept 4, a file quantity of greater than 1.7 million travellers handed by way of Woodlands and Tuas checkpoints.
One factor is the regular strengthening of the Singapore greenback in opposition to the ringgit, from about 3 at the begin of 2020 to new highs of 3.17 in April 2022 and 3.5 immediately.
What Johor residents say
Sales government Siti Atiqah Ahmad Daud, 35, nodded in settlement when requested if the influx of Singaporean vacationers into Johor Baru had created disamenities for Johoreans like herself.
“Quite a bit of Singaporeans come right here as a result of of their stronger foreign money. They need to eat good meals and purchase issues for affordable right here.
“But for locals like us, it’s not excellent. It’s like there’s ‘competitors’ as a result of they’ll afford to purchase many issues at greater costs, and we are able to’t,” she instructed TODAY.
The mom of three youngsters aged two to fifteen mentioned the costs of staple meals, comparable to rice and meat, have risen sharply since the motion management order (MCO) — imposed in early 2020 as Covid-19 circumstances soared in every single place — was formally lifted at the finish of 2021.
“Now, a lot of issues value a minimum of 50 per cent greater than they used to. It’s very unhappy to see the power of our ringgit taking place,” she lamented.
Similarly, retail store supervisor Beanz Ho, 31, believes that the greater value of living in Johor Baru could be attributed to extra vacationers, particularly these from Singapore, coming into the metropolis to spend.
“Almost every part is getting dearer, comparable to groceries, cooking substances, hen, and meat. If I owned a enterprise in JB, it might be good as a result of there could be extra gross sales.
“But if I had been a resident incomes a wage, it might be more durable as a result of the wage may not be sufficient for the greater value of living. It’s not balanced,” he mentioned, including that the impending improve in the Sales and Service Tax (SST) from six to eight per cent in Malaysia subsequent yr worries him.
For this purpose, Ho prefers to remain in Kulai, a city some 30km from Johor Baru.
“Although I’ve to drive again and forth on daily basis, I don’t thoughts as a result of petrol prices round RM300 (S$85) a month. But if I had been to get a home in JB, the value vary is about RM800,000 to RM1 million, which isn’t reasonably priced in any respect,” he mentioned.
Restaurant supervisor Chong Guo Hui, 31, mentioned a contemporary graduate incomes RM2,000 a month will be unable to spend a lot as a result of a typical meal at a meals court docket, inclusive of meals and beverage, would quantity to RM15.
“It is feasible that companies are keen to jack up their costs as a result of extra Singaporeans journey right here, and they’ve higher buying energy than the locals.
“But on the different hand, I feel Johoreans going over to Singapore to work contributes to the rising costs right here too as a result of after they carry (Singapore {dollars}) again, they’re extra keen to spend as their wage is thrice greater,” he mentioned.
Chong, who additionally has members of the family working in Singapore, urged the state authorities to plan an efficient plan for retaining skills as a result of the “mind drain” state of affairs that Johor is dealing with, in his opinion, is the most urgent subject.
“It’s getting more durable to rent locals. We should take into consideration retaining Malaysians as a result of it’s not sustainable for companies to maintain hiring foreigners,” he mentioned.
To make sure, some residents imagine that the rising value of living isn’t just as a result of the Singapore factor however can be attributable to a confluence of causes, comparable to the weakening ringgit as a result of political shifts in the nation, and geopolitical tensions.
Sales government Siti Atiqah Ahmad Daud believes that the influx of Singaporean vacationers into Johor Baru had created disamenities for Johoreans like herself. — TODAY pic
A monetary guide, who wished to be recognized solely as Hiew YZ, instructed TODAY that he believes that the political adjustments in the final three years have a important half to play in the depreciating ringgit.
Before Anwar Ibrahim turned prime minister following the 2022 basic election, Malaysia had had three prime ministers in as a few years.
“Our Prime Minister (Anwar) has simply held the place for a yr. There’s nonetheless a lot of time till the subsequent election, so hopefully, issues can be higher by then,” Hiew mentioned.
Retiree Chin AB, 76, mentioned Malaysians mustn’t “blame” Singaporeans for hovering costs as a result of inflation is going on worldwide, not simply in the nation.
“Perhaps, sure, there can be some affect, however in the end, Singaporeans coming over makes JB a livelier place,” he mentioned.
What do enterprise house owners suppose?
TODAY’s interviews with a number of entrepreneurs discovered that whereas that they had blended views on Singapore’s affect on inflation in Johor, some didn’t suppose that the influx of Singaporeans is a important purpose behind rising costs.
Contrary to residents’ beliefs, some of these companies had been extra involved about home and exterior components, comparable to the weakening ringgit, which has led to a spike in the value of uncooked supplies.
Triple Ok Cafe store proprietor Keoh Teik Hoe, who serves beef noodles, mentioned he will get his beef provide from Australia and New Zealand, and the suppliers commerce in United States {dollars}.
Amid the persevering with weakening of the ringgit this yr, he instructed TODAY that beef costs had elevated by 20 per cent this yr. In October, the ringgit fell to a 25-year low in opposition to the US greenback.
Singaporeans make up 30 per cent of Keoh’s buyer base, whereas the relaxation are primarily locals and common patrons.
“I can’t merely improve my costs. For now, I’ll nonetheless take in the value as a result of I can nonetheless get by even with earnings taking place by 30 per cent.”
Keoh was adamant in his perception that “it isn’t proper” for enterprise house owners to regulate their costs “simply because” Singaporeans can afford the greater costs.
“Then what about the locals? Yes, Singaporeans have greater spending energy, however they’re solely right here on weekends. The locals right here can go to your small business a number of instances a week as a result of they stay right here,” he mentioned.
Third-generation proprietor of Hiap Joo Bakery, Lim Toh Huei, 35, mentioned the costs of bananas had shot up after the MCO, so the bakery needed to change its banana bread costs from RM10 to RM12 final yr.
“You can get 1kg of bananas for RM2.50 beforehand, however now it prices RM4.50 to RM5. The costs fluctuate, however since the final evaluation, we don’t plan to alter our pricing once more for now. We can nonetheless bear the prices first,” he mentioned.
Lim, whose enterprise is essentially patronised by Singaporeans on weekends, mentioned Johor Baru is “undoubtedly impacted” by Singaporeans pouring into the metropolis.
“For companies like mine, it’s good. But for the relaxation of us, it means we have to proceed working exhausting to place meals on the desk.
“Now that instances are more durable, I feel it’s necessary for everybody, particularly younger adults, to return out and work to earn their hold as a result of there’s no such factor as a free lunch in this world,” he mentioned.
Third-generation proprietor of Hiap Joo Bakery, Lim Toh Huei, whose enterprise is essentially patronised by Singaporeans on weekends, mentioned Johor Baru is “undoubtedly impacted” by Singaporeans pouring into the metropolis. — TODAY pic
Multi-label style retailer Bev C proprietor Beverly Ang, 40, mentioned whereas she agreed that Singaporeans have greater spending energy, she didn’t see this as the purpose for value hikes in Malaysia, significantly Johor Baru.
“I feel it’s as a result of our political state of affairs isn’t secure. Our Prime Minister has solely served for a yr, so the state of affairs instantly impacts our foreign money trade price.”
Owner of Coffee Bar 1438, who wished to be recognized solely as Firdaus, shared the identical sentiment as Ang.
He mentioned Johor Baru is a vacationer hub that pulls vacationers from different international locations, comparable to South Korea and China. Hence, from a enterprise perspective, the rising tourism sector in the metropolis bodes effectively for him.
“Singaporeans have been coming to JB for a very long time, so I don’t suppose their arrivals have an effect on costs right here a lot. The two foremost causes are our weak foreign money and political adjustments,” he mentioned.
Sixty per cent of Ang’s prospects are Singaporeans, whereas Firdaus serves round 85 per cent of Singaporean prospects.
How have costs modified in Johor?
According to a report by the Department of Statistics in Malaysia, Johor’s year-on-year inflation as of October — the newest figures accessible — is at 1.7 per cent.
The state ranks sixth highest, proper behind Penang (1.8 per cent), Selangor (1.9 per cent), Perak (2.2 per cent), Sarawak (2.5 per cent) and the Federal Territory of Putrajaya (2.7 per cent).
The high 5 classes that reported the highest year-on-year inflation in Johor are:
- schooling (7.5 per cent)
- eating places and resorts (4.1 per cent)
- well being (3.8 per cent)
- meals and drinks (3 per cent)
- furnishing and family upkeep (2.4 per cent)
With the report additionally itemizing the common costs of items throughout varied states, TODAY checked out the December 2022 version for some insights into how costs had modified in the previous yr in Johor.
Not all items noticed a drastic spike, however some notable ones included berangan bananas, which used to value RM5.42 per kg in December 2022. It was RM6.40 in October, a rise of 18 per cent in 10 months.
Tomatoes of the identical weight, which value RM5.59 in December 2022, had been priced at RM6.46 in October, up virtually 16 per cent.
Consumers paid a mean value of RM6.90 for a plate of hen rice final yr. Ten months later, they needed to fork out RM7.38, or 7 per cent extra.
A 10kg bag of rice units customers again by RM30.15 in October, in comparison with RM26.15 final yr, or 15 per cent decrease.
The bag of rice would have value much more if not for Malaysia’s subsidy scheme on petrol, cooking oil and important meals objects, comparable to rice.
What’s behind greater costs in Johor
To get a clearer image of the components behind cost-of-living considerations in Johor Baru, TODAY spoke to economists to grasp the large image and whether or not Singaporeans are the foremost contributors to greater costs for staple items.
Sunway University economics professor Yeah Kim Leng mentioned that Singaporeans, too, are dealing with rising prices of living in their nation, which has prompted them to journey to Johor Baru for cheaper items.
Singaporeans have been grappling with greater costs as the core inflation of the nation rose from 3.0 in September to three.3 per cent in October. In January and February, the figures stood at 5.5 per cent, a 14-year excessive.
“The rising value of living in Singapore has pushed many Singaporeans to buy their every day necessities in Johor Baru,” mentioned Prof Yeah.
“To deal with the extra demand, Johor Baru must successfully look into capability growth. If they can’t develop, and demand is bigger than provide, this results in extra demand, which can then trigger upward value pressures and inflation.”
In economics phrases, Prof Yeah described the phenomenon as “overheating”, which happens when an economic system is unable to develop to satisfy the elevated demand, ensuing in extended durations of inflation.
For now, he has but to see Johor Baru attain this stage regardless of the greater value pressures confronted as a result of some slack in the labour and housing markets.
“Businesses might increase and cost greater costs, however we additionally should consider that the majority of this demand is seasonal. You solely see a large surge in demand on the weekends and public holidays.
“These are the challenges confronted by companies in Johor Baru. They should factor seasonality into their plans and guarantee the enterprise remains to be sustainable for the relaxation of the week when there’s no improve in client demand from Singapore.”
Prof Yeah mentioned Johor Baru can see the influx of Singaporean customers as a chance as an alternative of a menace.
“Johor has each a mixture of investor demand and visitors from Singapore. The query now’s how the state can advance additional to faucet into alternatives offered to them in this state of affairs.”
Carmelo Ferlito, chief government officer of Kuala Lumpur-based suppose tank Centre for Market Education, mentioned Malaysia is now “paying the penalties” for the insurance policies launched to alleviate the monetary burdens of households throughout the pandemic.
An instance of one such coverage, based on Ferlito, is the launch of financial stimulus packages, comparable to Prihatin, which was mentioned to be amongst the largest in the world.
The RM250 billion Prihatin package deal could be described as the Malaysian equal of Singapore’s Unity and Resilience Budgets in 2020.
Ferlito instructed TODAY: “You can’t suppose …(you may) ‘swap off’ the economic system to implement fiscal and financial expansions, and not have inflation.” He talked about this in reference to the MCO, which led to an financial standstill.
“So inflation was attributable to the authorities, not by Singaporeans.”
Asked about the purpose for Malaysia’s depreciating ringgit, Ferlito attributed it to 2 foremost components — latest geopolitical tensions, comparable to the Russia-Ukraine struggle, and China’s financial slowdown.
On the first level, Ferlito famous that whereas it could appear as if the ringgit is weakening, in actuality, it’s the US greenback strengthening as a result of it’s nonetheless thought-about the greatest reserve of worth.
“In moments of uncertainty, the US greenback stays the refuge. The individuals have a tendency to buy extra safe-haven currencies, so in flip, this has weakened the different currencies, and as a consequence, the ringgit suffers.
“This is paired with the high-interest price coverage adopted by the Federal Reserve, attracting overseas traders in the direction of the buck,” he mentioned.
Domestically, Ferlito mentioned Malaysia has been impacted by China’s financial slowdown. “China was significantly ‘suicidal’ in its insurance policies on the lockdowns, and now it’s paying the value. You can’t swap on and off the economic system prefer it was a automobile or an engine.”
Since Malaysia is a vital commerce accomplice of China, he mentioned: “The weakening of China instantly impacts Malaysia.”
Asked what the Malaysian authorities can do to assist residents, Ferlito mentioned it’s vital for Malaysia to undertake enterprise — and market-friendly options for the economic system to realize power by itself.
“Giving money handouts may seem to be a politically interesting manoeuvre, however this really makes individuals poorer as a result of, in the finish, every part will turn out to be dearer.”
On its half, the Johor state authorities has introduced varied schemes to assist residents deal with inflation.
These embrace a RM300 month-to-month allowance given to Johor fishermen and a rice help programme the place all households are entitled to a 10kg bag of rice. Married {couples} get aid with a one-off RM1,000 monetary help underneath a programme for newlyweds.
In saying a RM1.8 billion price range for 2024 on Nov 23, Johor chief minister Onn Hafiz Ghazi mentioned: ”We perceive that the rakyat (Malay for individuals) is dealing with hardships comparable to the excessive value of living, with requirements turning into dearer and the drop in ringgit worth, which have contributed to the rising value of living.
“The 2024 state price range was deliberate as a continuation of our effort to develop Johor’s economic system for the wellbeing of the Bangsa Johor individuals,” he added.
The state has put aside greater than RM300 million in the Johor 2024 Budget to help residents who fall inside the lowest 40 per cent class by revenue.
A story of two cities’ symbiotic ties
While the jury remains to be out on the extent to which Singaporeans have contributed to rising costs in Johor Baru, the symbiotic relationship between the two cities linked by the Causeway can’t be denied.
That relationship turned most pronounced when the pandemic pressured each locations to shut off their borders to guests.
Shopping malls and the surrounding vacationer enclaves in Johor Baru had been empty, with nary a soul in sight save for retail workers.
“It’s clear that the retailers there exist to cater to the wants of Singaporeans,” mentioned Hazree Mohd Turee, managing director of BGA Malaysia. BGA, quick for BowerGroupAsia, works with firms throughout varied sectors to offer options and assist them strategise and develop.
Now that demand has gone again up after Covid-19 restrictions had been lifted, it’s no shock that folks from Singapore are crossing the Causeway in droves, keen to purchase groceries and home items at a decrease value once more.
In 2022, Johor obtained over 9 million vacationers, and Hazree mentioned round 80 per cent of the complete got here from Singapore. Before the pandemic, in 2019, the complete stood at over 17 million, with greater than 13 million coming from Singapore.
A Johorean himself, Hazree mentioned Johor Baru residents are most impacted by the costs of moist items, comparable to hen and fruits.
“Chicken prices as excessive as RM17 per kg in Johor, which is sort of S$5 to Singaporeans. But in Singapore, they should pay S$8.65 per kg. It’s a huge distinction.
“That’s why at locations like moist markets, the sellers want to promote to Singaporeans as a result of they’ll jack up the costs. Even after the value hikes, costs in Johor are nonetheless a minimum of 50 per cent cheaper to them (Singaporeans).
“This was the development earlier than the pandemic, and I’m positive it’s going to proceed now,” he mentioned.
Where meals is anxious, there may be extra to the story than meets the eye. Hazree defined that Malaysia is a web importer of meals as the produce grown domestically isn’t sufficient to satisfy home demand after catering to exports.
“As a web importer buying and selling in (US {dollars}), costs will shoot up given our ringgit’s present state of affairs,” he mentioned, including that it’s crucial for Malaysia to deal with meals safety considerations in order that the nation could be extra self-reliant.
Price points apart, congestion can be one other on a regular basis phenomenon in Johor Baru.
And when the weekends and college holidays are right here, the metropolis sees extra Singapore-registered vehicles cruising on Malaysian roads.
Siti Atiqah, the gross sales government, mentioned that visitors situations might turn out to be fairly bothersome with a combine of Johor and Singapore vehicles in the metropolis.
“I feel the authorities can contemplate controlling the quantity of Singapore vehicles coming into JB over the weekend. Don’t simply enable everybody to return in as a result of this worsens the congestion right here.”
Kedai Dhoby Shanghai co-owner Hakim Abdullah, 23, was amongst a number of residents interviewed by TODAY who expressed hope for a dependable MRT system in the metropolis sooner or later to ease congestion.
“But personally, I don’t suppose congestion is a main subject. It makes me really feel that the metropolis may be very occurring,” he mentioned. — TODAY
