Finance Updates: Ringgit nears RM3 per Singapore dollar, but cross-border spending by Singaporeans holds steady

Source:

https://www.channelnewsasia.com/singapore/malaysian-ringgit-singapore-dollar-travel-currency-5958446

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The Malaysian ringgit has strengthened significantly against the Singapore dollar, rising from a low of about RM3.55 per SGD to around RM3.10, and analysts say it could soon approach RM3.00. Despite the stronger currency, Singaporeans continue to spend actively in Malaysia, with little sign that cross-border spending has slowed.

For individuals who regularly travel or live across the Causeway in Johor Bahru, the impact has been noticeable but manageable. For example, a Singaporean couple renting an apartment there saw their monthly expenses rise slightly as the ringgit appreciated. Their combined rent, car loan and daily expenses total about RM5,700, equivalent to roughly S$1,860, around S$200 more than when the exchange rate was more favourable. However, they say the stronger ringgit mainly requires better budgeting rather than major lifestyle changes.

Others who visit occasionally report only minor increases in costs. One Singaporean who travels monthly to Johor Bahru estimated the stronger ringgit adds roughly S$12 per outing, a relatively small increase for activities such as food, transport and entertainment.

Data from cross-border payment platforms supports these experiences. Revolut reported that conversions from Singapore dollars to ringgit increased steadily through 2025, with January 2026 transactions up nearly 42% year-on-year. Similarly, YouTrip said both transaction volumes and spending amounts have grown. According to YouTrip, Singaporeans tend to convert money quickly when the rate hits around RM3.30 per SGD, suggesting users are becoming more strategic about locking in exchange rates.

Analysts say the ringgit’s rise is driven largely by global factors, particularly expectations around US interest rates and broader currency movements, rather than major differences between the Singapore and Malaysian economies. The ringgit also had room to rebound after being previously undervalued.

Looking ahead, forecasts suggest the rate could reach RM3.00–RM3.05 per SGD by mid-2026, though currency movements remain sensitive to global economic conditions.

Comments:

Come on SGD! Be Strong! 😏