The weak value of Malaysian ringgit against the Singapore dollar may be an advantage to Singaporean investors, but it is driving local talent away, said a report by The Malaysian Insider.
The value of the Malaysian ringgit fell to 2.51 on Friday, its lowest level since July 1998, as international funds ran after Singaporean assets.
According to the Straits Times, both Malaysians and Singaporeans working in Singapore snap for more ringgit for their travels to Malaysia. Some property investors and manufacturers can even be encouraged by the weakness of ringgit.
Johan Merican (pictured), Chief Executive Office of Talent Corp, suggested that Malaysian companies increase wages in order to be competitive with Singapore as more Malaysians are attracted to go there and earn better wage.
"The fall in the value of the ringgit means there is a further three to five percent discount for those looking to buy, which might further pique interest," said Mohamed Ismail, Chief Executive of PropNex.
"An increase in interest from Singaporean property investors however could put upward pressure on prices and potentially price more Malaysians out of the market," he said.
For Singaporean buyers, Malaysian houses are relatively cheap compared to public housing which can now cost S$500,000 or RM1.25 million.
With that amount, a Singaporean buyer can already buy a middle- to high-end landed property in the outskirts of Kuala Lumpur or in Johor and still have money for a fixed deposit.
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