Ringgit’s surge pressures Singapore shoppers and Malaysians working across borders

Observers say it could continue strengthening, but that a return to below the 3.00 level against the Singdollar is unlikely

The Malaysian ringgit’s surge against the Singapore dollar – driven by the actions of the country’s central bank, economic prospects and a weakening greenback – could reshape the cross-border shopping habits of those looking to stretch their dollar.

The ringgit’s ascent has also raised speculation about it breaking below the 3.00 level, which was last achieved in February 2020, when it was at 2.90 against the Singdollar. There is also talk that the strength of the currency could hit the country’s tourism and economic outlook if it persists.

It remains to be seen how sustainable the ringgit’s northward rise could be, as it is still early days and most analysts expect currency volatility ahead.