JOHOR BARU: The Singapore dollar, currently trading at a historical high of 3.54 against the ringgit, has sparked mixed reactions among Johoreans.
The Singapore dollar's strength has seen a higher number of Singaporeans crossing the border into Johor, boosting retail business owners and entrepreneurs.
However, some business owners say they are burdened.
While most small and medium enterprises are enjoying a higher shopper volume, that has not translated to bigger profit, given the high operating costs and the rising cost of living in Malaysia due to the weaker ringgit.
While the influx of foreign visitors is contributing to a surge in sales, it has also led to more traffic congestions and a shortage of manpower in the service industry.
Restaurateurs said it was now difficult to hire locals as dishwashers and floor staff as many of them were seeking job opportunities across the Causeway.
Ngiam Tee, 59, a restaurant operator in Bukit Indah, said the widening exchange rate had a negative impact on his business.
"We are just a regular restaurant offering local dishes at 'everyday' prices. There is nothing fancy here and foreigners, especially Singaporeans, will not brave the border congestion just to dine here," he said.
Ngiam said his business experienced a decline in profit in the last three years as he was unable to cope with the manpower shortage, which forced him to shorten his operating hours.
"It's difficult as locals demand high wages, which we cannot afford. When we hire foreigners, the procedures are long and expensive.
"Sometimes, we employ foreigners, mostly from Myanmar or Indonesia, to work while they wait for their permit approvals. But then, we are constantly harassed by enforcement officers," he said.
Given the circumstances, Ngiam said he decided to reduce his menu and operating hours.
He said during his 15 years in the food business, his restaurant suffered the most during the Covid-19 pandemic lockdown and had yet to recover.
"However, the number of patrons varies each weekend. Sometimes we see an increase of between 10 and 15 per cent. Last week, it was overcrowded, but this week not so," he added.
Mek Enterprise proprietor Somsiah Che Wel, 69, who operates a snack booth selling chips and
traditional Malay delicacies in Angsana Johor Baru Mall, said she relied heavily on Singapore customers to sustain her business.
"The prices of ingredients have skyrocketed, especially with the weaker ringgit, and this has led to end-products costing more.
"Not many locals are shopping now. My business is surviving only because of the Singaporeans' buying-power," she said.
Rebung Spa proprietor Rohani Saad, 60, said the widening ringgit-Singapore dollar exchange rate contributed positively to her business.
"We are fully booked during weekends. Our business relies on our regular clientele, with Singaporeans making up almost 70 per cent.
"To cope with the surge in bookings during weekends, we have stationed our therapists from
different outlets to the one at Angsana Johor Baru Mall as it is popular with Singaporeans.
"But this also caused us to turn away clients from our Plaza Larkin branch, as we are unable to hire additional staff," she said.
She said Singaporeans were more willing to spend on comprehensive packages as they considered the prices "cheap".
However, Rohani admitted that she had lost a few of her therapists to greener pastures in Singapore.
She said she had invested heavily in training her therapists as they were the backbone of her business, but had lost them as she could not cope with their salary demands.
Singaporean Raudhah Jismi, 25, a special-needs trainer, took advantage of the widening exchange rate to book spa treatments at Rebung Spa due to the cheaper services compared with those in the republic.
She said with the stronger Singapore dollar, she was able to manage her savings better while indulging in more treatments in Johor.
A banker-turned-baker who preferred to be known as Arly Omar, 42, said he left the banking sector after 15 years to open a bakery in Singapore.
He said the rising cost of living and the stress of working in the banking sector were among the reasons he decided to pursue a new career.
The cost of opening the bakery in Singapore was triple that in Johor.
"But I decided that although I had to invest a bigger sum, it was a faster way for me to enjoy an early retirement."
However, he said while the bakery had yet to generate a big income, he was able to pay his bills in Malaysia thanks to the high Singapore dollar-ringgit exchange rate.
Singaporean Anissa Morgan, 45, believed that from the perspective of Singapore dollar-ringgit valuation, it was cheaper in Singapore compared with Malaysia.
One could get a meal of nasi campur in the republic for S$5, but that would be impossible in Malaysia, she said.
"I was in Johor Baru recently and the prices there were ridiculously high. At a mamak restaurant, one could end up paying RM20 for nasi campur.
"Even the coffee at Starbucks is expensive. Of course, when you convert that to Singaporea dollar, it could be considered cheap," she said.
She said she preferred to buy fresh produce in Singapore due to better prices and quality, although she enjoyed having seafood in Johor.
"Even though most Singaporeans may not accept it, the food does taste better in Malaysia," she said.