"The Singapore dollar has risen strongly against the Malaysian ringgit to a four-month high, in a boom for locals travelling or shopping across the Causeway." The Straights Times, January 24, 2014
So, this is what we are all waiting for! A stronger SGD against our neighbouring country's ringgits! Shopping will be cheaper in JB, especially all the CNY goodies! We will see heavier traffics at the Causeway and Second Links. :(
So how the stronger SGD affects our economy? Will more Singaporean go over to JB for shopping? What will be the effects on the local retailers? On the micro aspect, consumers will go for the cheaper substitute in JB (anyway most of the goodies sold in Singapore are imported from Malaysia ha ha ), thus affecting the retailers' profits as demand fall! As for the Macro aspect, imports spending will increase and thus worsening Singapore's BOT positions!
May be we should "ban" shopping from Malaysia! However, we should not forget how free market works! We are a small economy and should not impose any form of protectionism.
One piece of advice for shoppers going to JB though, you must not forget the opportunity cost incurred! unless you do not mind the 3 hours traffic jam! ....... i know what you will say "Is worth it la, besides shopping we will have a much cheaper seafood dinner plus "cheap" petrol!"
So with or without SGD appreciating, we will still go.....here we come Malaysia!
So, this is what we are all waiting for! A stronger SGD against our neighbouring country's ringgits! Shopping will be cheaper in JB, especially all the CNY goodies! We will see heavier traffics at the Causeway and Second Links. :(
So how the stronger SGD affects our economy? Will more Singaporean go over to JB for shopping? What will be the effects on the local retailers? On the micro aspect, consumers will go for the cheaper substitute in JB (anyway most of the goodies sold in Singapore are imported from Malaysia ha ha ), thus affecting the retailers' profits as demand fall! As for the Macro aspect, imports spending will increase and thus worsening Singapore's BOT positions!
May be we should "ban" shopping from Malaysia! However, we should not forget how free market works! We are a small economy and should not impose any form of protectionism.
One piece of advice for shoppers going to JB though, you must not forget the opportunity cost incurred! unless you do not mind the 3 hours traffic jam! ....... i know what you will say "Is worth it la, besides shopping we will have a much cheaper seafood dinner plus "cheap" petrol!"
So with or without SGD appreciating, we will still go.....here we come Malaysia!
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