Several businesses in Johor Bahru said they have seen a noticeable drop in Singaporean visitors during the school holidays, with numbers falling by about 10% to 30%. They pointed to a stronger Malaysian ringgit, Singaporeans travelling to other countries, and stricter enforcement against illegal cross-border ride-hailing services as possible reasons.
Earlier, Malaysian media reported a decline in the number of Singaporeans crossing the Causeway to spend in Johor Bahru toward the end of the year, suggesting the trend may be linked to recent currency movements.
The Singapore dollar is now trading at about RM3.17, compared to around RM3.30 during the same period last year. At the end of 2023 and the start of 2024, the rate was about RM3.55, representing a significant drop in purchasing power.
When Shin Min Daily News spoke to several business owners in Johor Bahru on Friday (December 12), many said business has dipped slightly since the start of the month. While there are fewer customers from Singapore compared to last year, they said the area is not quiet overall.
Most business owners believe the decline is linked to the stronger ringgit, Singaporeans choosing other overseas destinations for year-end travel, and tougher action against illegal cross-border ride-hailing services.
KSL City Mall, which is known for its large number of massage, nail, and hair salons, has felt the impact. The manager of hair salon 6IX, which operates three outlets in the mall, said exchange rate fluctuations, combined with stricter enforcement against illegal taxis and the fact that cross-border ride-hailing services are still unable to drop passengers off freely, have affected business. Compared to the same period last year, revenue has dropped by 30%.
“About 90% of our customers are from Singapore, so the impact is quite significant. We are now rolling out promotions to attract customers back,” he said.
The branch manager of Thai massage chain Siam Oasis said business has declined by around 10%. “About 80% of our customers are Singaporeans. Some have told us they are travelling overseas, so we expected things to be quieter at the end of the year, but weekends are still usually full,” she said.
The manager of nail salon brand I BE OWN, which operates 13 outlets in the mall, said they have observed about a 5% drop in footfall recently. However, he added that the impact has been limited as most of their customers are regulars.
At Mid Valley Southkey, the assistant manager of clothing store TRT said foot traffic during the Christmas period has been similar to last year. However, she noted that customers are spending less, with purchasing power down by about 50%. She believes economic factors and the stronger ringgit may both be contributing to the trend.
