`


THERE IS NO GOD EXCEPT ALLAH
read:
MALAYSIA Tanah Tumpah Darahku

LOVE MALAYSIA!!!


 


Saturday, April 18, 2015

RINGGIT'S SCARY FALL: Bigger bills, tighter belts for Malaysians

RINGGIT'S SCARY FALL: Bigger bills, tighter belts for Malaysians
IN THE zero-sum game of currency markets, for every winner there is a loser. And right now, against currencies that matter to them, the Malaysians want the referee to blow the whistle.
The bills at home have become bigger and trips overseas have become rarer as the ringgit, with lower oil prices and the threat of a sovereign downgrade weighing it down, shrinks against the greenback and the Singdollar.
For many, like Mr Ammar Ghazali, the ringgit's fortunes have mirrored their own.
He had just found a new job and set his sights on an iPhone 6 when it was released in Malaysia last November. He missed out on the first wave because of the huge demand. And when it was possible to get his hands on it, he realised that it had become too expensive in Malaysian currency terms. Since March, Apple has raised the price of the device twice - by 13 per cent in all - and it now costs RM3,550 (S$1,307).
"So I'm stuck with my old Blackberry," the 31-year-old told The Straits Times.
While he bides his time, others are seeing their money slip away. Ms Yvonne Ho said her grocery bills left her stunned as items like fresh milk and canned tuna have become 30 per cent costlier in recent months. The 6 per cent goods and service tax introduced on April 1 has also played its part but it is the currency shock that has hurt most.
Since last August, the ringgit has plummeted 15 per cent against the greenback and recently touched a six-year low when one US dollar was worth RM3.72. While it slid a more modest 6 per cent on the Singapore dollar, this has left it at its weakest point (S$1=RM2.72) against its neighbouring currency since at least 1981.
The hardest hit are those who earn Malaysian ringgit but spend a large chunk of that in Singapore.
Mr Peter Tan, 45, a Malaysian whose only child goes to school in Singapore, said that the recent payment of school fees was "painful". The manager at a building maintenance firm in Malaysia said that he pays $4,000 per semester for his 19-year-old son at Singapore Polytechnic. Currency movements have increased his fees this semester over the last by RM800.
"It's very bad for me. I earn in ringgit, but pay in Singapore dollars," said Mr Tan. "It's a short-term pain, we will bear with it. I just hope the ringgit strengthens soon." For now, he said, he tries not to travel to Singapore unless he needs to.
Many other Malaysians are following his lead as hotels in Singapore report a drop in Malaysian tourists.
Santa Grand Hospitality's two properties popular with Malaysian tourists, Santa Grand Hotel Bugis and boutique hostel The Plot, said that there has been a 10 per cent dip in Malaysian guests so far this year compared to last year.
Malaysian tourists make up half of Santa Grand Hotel Bugis' guests and 30 per cent of guests at The Plot in Outram. "We used to have families drive two or three MPVs (multi-purpose vehicles) up. Now we see smaller groups," said Santa Grand Hospitality's marketing manager, Mr Derek Poh. "They are booking smaller rooms, too, and staying two nights instead of three."
Singapore Tourism Board said1,233,000 Malaysians visited Singapore last year, making them the third largest source market for tourists here after Indonesia and China.
These numbers could fall in the short run. Malaysians are waiting for the storm to blow over, but it could last a while. According to Maybank, the exchange rate will hit RM3.75 to the US dollar this quarter and remain there until the fourth quarter. - Asiaone

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.