With The Surging Singapore Dollar Against The Weakening Malaysia Ringgit – A Sing Dollar Is Currently Worth More Than RM2.55 Ringgit!!
Everyday, more and more cars are streaming into Iskandar for the cheaper goods & services. On returning, cars are loaded with all types of Supermarket goodies & petrol tanks are filled to the brims. We need not elaborate as these are obvious things.
Let Us Consider The Fundamental Reasons For The Price Disparity To Understand This Happy Advantage For The Fortunate Singaporean – Living In First World Standard & Enjoying Third World Costs By Shopping For Both Services & Goods In Iskandar.
No.1) The Strength Of The Singapore Dollar
While the Singapore Dollar appreciated strongly, the Ringgit continues to slide. The Ringgit is even cheaper than the Thai bath! Will the Sing Dollar Further Strengthen to One Sing Dollar For Three Malaysian Ringgits?
No. 2) High Cost Of Rental In Singapore.
The Prohibitive Cost Of Renting A Shophouse In Singapore is 8 to 15 times More Expensive than Johor! How to sell goods at lower prices?
No. 3) High Cost Of Transportation & Logistic In Singapore!
The Skyrocketing COE for All Cars, Vans, Bikes & Lorries Add Huge Operating Costs To Businesses! Plus, with ERP(Electronic Road Pricing) everywhere in Downtown Singapore Doing Business Here Is Only For The Elites.
No. 4) The Cost Of Labour & Ever Increasing Foreign Worker Levies.
The Wages In Singapore Are 3 to 5 Times More Than Johor. But With ADDED LEVIES (Foreign Worker & Maid Levies) Wages might rise above 5 times those of Johor.
No. 5) Singapore Has 7% GST While Malaysia Has None Yet. The Ruling Party In Singapore Is PAP. PAP is “People’s Action Party”. PAP can also mean “Pay And Pay”. A Prudent & Smart Govt Like PAP Attracts Universal Capital From All Over The World. No wonder the Govt is getting richer & richer & the Sing Dollar gets stronger and stronger!
No. 6) The Presence Of Both Legal & Illegal Immigrants In Johor.
Singapore Laws Are Very Stringent Against Illegal Immigrants. This Is A Price Paid For Safety! And It Is Worth Paying In Exchange For A Safer Country In Comparison To Malaysia.
The presence of legal & illegal immigrants in Johor keep wages even lower and lower for businesses operating in Johor. These legal & illegal immigrant drain billion$ from M’sia when they remit earnings back to their own countries. No wonder the Ringgit gets weaker and weaker.
N0. 7) Malaysian Government Subsidies For Petrol, Electricity, Water, Flour, Oil, Rice, Sugar & etc etc. Almost totally free medical services & medicines in General Hospitals.
This Is Perhaps The Most Vital Reasons Why Things In Johor Are So Very Cheap!! The Malaysian Government’s Continual Subsidies In Almost Everything For Its Citizens. That’s Why Fitch, The Rating Agency Has Downgraded Malaysia For Its Profligacy In Fiscal Spending. And The Ringgit Has Gone Weaker For The Negative Rating.
That’s why Singaporean & Thai cars are not allowed to pump Ron 5 petrol, which is subsidized. Malaysian Custom Officers prohibit Foreign Cars From Taking Flour, Sugar, Palm Oil & Rice out of Malaysia because they are subsidized for Its Citizens only!
Now You Understand Why The Costs Of Living In Johor Can Resemble Third World?
- No.1) Magazines like Reader’s Digest, Economists, National Geographic Are 30% to 50% Cheaper Than Singapore. Shop for your magazines here, then.
- No. 2) All Fast Food Outlets Like McDonald, KFC, Pizza Huts, Old Town Coffee & Etc Etc are 30% to 40% Cheaper here. So dine here.
- No. 3) Houses, Condos, Cars, Bikes Are Only A Fraction Of Singapore. So Buy & Stay here. Better buy earlier as prices like Shenzhen in early 1980s were cheap. Shenzhen is no longer cheap today. Because of Skyrocketing Prices In Hong Kong, Shenzhen prices today have even overtaken expensive Singapore – in come cases!
- No. 4) All Vitamins Like Centrum & Pharmaceutical Products are 20% to 40% cheaper here.
- No. 5) The Same Gardenia Bread that you buy in Singapore Is Cheaper here at 30% Discount.
- No. 6) A Car Wash Costs Only S$3.30. Hair Cut & Dye is S$19. An Half hour Foot Reflexology S$7.
Taxi fare from City Square to KSL City is S$1.60.When we visited Japan, the tourist guide told us that the cost of taxi fare from his home to Narita Airport is more expensive than an air plane ticket from Hong Kong to Tokyo! That’s why Japanese retirees are flocking to Iskandar in droves.
The People of Iskandar are the Luckiest people on earth. Many don’t know how fortunate they are! Millions of Foreign Immigrants are struggling to get a PR Status here.
- N0. 7) Many Singaporeans Who Regularly Shop Here Know All These Bargains & More!But let us share some examples of Real Savings!
One Day my wife visited Lot One in Chua Chu Kang, Singapore. As she was reversing the Kia Caren into the car park at Lot One she smashed the rear windscreen. You see, there was a protruding part which the reverse sensor did not detect.
For Rear Windscreen replacement, Cycle & Carriage at Pandan Gardens, quoted S$900.Then we called Mr. Bub, the owner of Dr. Cermin in Johor. He has more than 20 Dr. Cermin repair shops in Johor. Mr. Bub, my good friend, quoted RM900 for the replacement of a new rear windscreen inclusive of labor costs.
From S$900 to RM900! Let’s work out the sum: S$900 x 2.55 = RM2295.
RM2,296 – RM900 = RM1395 (Savings!) Satisfied? Not Yet!!
Then we called “Panjang” of M-One Car Parts. He sells 2nd Hand Car Parts Imported From Japan & Singapore & Taiwan. He quoted RM450 for a Kia Replacement windscreen inclusive of workmanship!! That’s it! A Real Bargain. The Windscreen is new. and the job was completed in 2 hours
Let’s do the sum again. Costs RM2,295 – RM450 = RM1,845. By going to Third World Johor, we managed to save RM1,845!!
One Evening while driving home from Woodland Causeway through BKE, the same Kia Caren’s engine timing belt suddenly broke. The MPV was towed to Cycle & Carriage, Pandan Gardens.
The next day, the attending offer after having assessed the Damage, quoted S$4,000 for Repairs (Inclusive of Spare parts & Workmanship). We called a Licensed Tow Truck from Johor. For RM350 the Kia Caren was towed to my friend, Ah Siang’s Car Repair Shop in Jalan Kosa, Taman Perling.
The total expenses for a new gasket, 12 engine valves, engine oil and other damaged parts, plus labor cost came up to Only RM1,000. Let’s calculate The Difference In Price. In Singapore S$4,000 x 2.55 =RM10,200. For Towing to Johor: RM350 + RM1,000 (Cost of repairs) = RM1350.
RM10,200 – RM1,350 = A FANTASTIC SAVING OF RM8,850!
THIS IS WHAT WE CALL “FIRST WORLD LIVING – THIRD WORLD COST”.