Ringgit hits record low against Singapore dollar but not everyone is rushing to money changers

The Malaysian ringgit fell once again, hitting a record low of 3.5517 against the Singapore dollar on Wednesday (Feb 7). 

At The Arcade in Raffles Place on Wednesday noon, AsiaOne saw several money changers selling the ringgit at around RM3.50.

Micky Chong, a 28-year-old Malaysian working in Singapore, told AsiaOne that she was going to exchange money for her return to Malaysia for Chinese New Year, regardless of the latest exchange rate.

"As a Malaysian working here, the ringgit dipping is okay for me, but I think it is difficult for my family members in Malaysia," she said.

With plans to change $3,000 into ringgit, Chong shared that she prefers to do so online as they offer better exchange rates. 

Despite the currency hitting a record low, AsiaOne noticed that not many people were exchanging ringgit at The Arcade. 

Unlike some Singaporeans, Kumar, a 54-year-old senior project manager, was upset about the weakening Malaysian ringgit.

"I am feeling sad about the dip as two properties in Johor Bahru that I have rented out and the further dip in Malaysia ringgit will hurt my earnings," he told AsiaOne.

Kumar, who has been keeping an eye on the ringgit since 2022, shared that he decided to withhold exchanging money now as he thinks it may drop further.

"When it fell to 3.2, I thought it was the best rate. But right now, I have decided not to exchange money as I think it may drop further."

Mixed demand at money changers

While customers may welcome the favourable exchange rate, it wasn't the same for some money changers. 

Despite seeing ringgit sold out within two hours last October, a money changer at The Arcade didn't see a strong demand for the currency this time around.

Abdul Haleem, a partner at City Money Changers, told AsiaOne that he did not see an uptick in the number of customers buying the currency, noting that the demand for ringgit is usually high during Chinese New Year.

"Our top-selling currency is actually the Japanese yen," he said.

Haleem, who was selling the ringgit at 3.495, mentioned that he was "not making a cent" from doing so.

Expecting the ringgit to continue weakening, he advised Malaysians to purchase Singapore dollars before "it becomes worse".

On the other hand, money changers at other locations saw high demand for ringgit this week.

A money changer in Boon Lay Shopping Centre still had customers at about 8pm on Wednesday, 8World reported. 

The number of customers buying ringgit had doubled over the past few days, a staff member told the Chinese publication.

Apart from the upcoming public holidays, she said that the influx of people might also be due to the Malaysian ringgit hitting hit a new low against the Singapore dollar. 

Meanwhile, ringgit was sold out by 8pm at a money changer in Ang Mo Kio Hub on Wednesday.

In the last 20 years, the Malaysian ringgit has depreciated by about 60 per cent against the Singapore dollar from when $1 was equivalent to RM2.24, the New Straits Times reported. 

ALSO READ: Singaporeans take to money changers with ringgit at record low: 'You never know if it will be like this again'

ashwini.balan@asiaone.com