Johor Bahru — The Malaysian ringgit's rally to seven-year highs has created an unexpected squeeze on the 350,000 Malaysians who cross the Causeway daily to work in Singapore, transforming currency strength into a household budget crisis.
The ringgit strengthened from RM3.30 to RM3.09 against the Singapore dollar between December 2025 and February 2026, a 6.4% appreciation that reflects growing confidence in Malaysia's economy. But for cross-border workers paid in Singapore dollars, the math works in reverse: their salaries now convert to fewer ringgit just as school fees come due.
The Human Cost of Currency Appreciation
Helmizi Londing, a 48-year-old bus driver earning SGD2,000 monthly, saw his ringgit income drop by RM200 since December — a loss of roughly 3% of his purchasing power. "With the 2026 school session starting, many parents, including myself, need to spend large sums preparing our children's school necessities," he told SAYS. With three school-age children requiring nearly RM3,000 in supplies and uniforms, the timing couldn't be worse.
Rohana Ismail, a 42-year-old nurse commuting from Pasir Gudang, earns SGD2,800 monthly. Her ringgit-converted income declined from RM8,848 in December to RM8,656 in February — a loss of RM192. "Although the difference seems small, it affects those of us who earn a living across the Causeway," she said.
The Regional Integration Paradox
This is the hidden cost of regional economic integration. Decades of ASEAN connectivity have created cross-border labor markets worth tens of billions annually, with workers flowing toward higher wages while sending remittances home. But currency volatility transforms what should be stable employment into a speculative position.
The ringgit's strength extends beyond Singapore. On January 23, it breached the 4.00 level against the U.S. dollar for the first time since 2018, reaching 3.9992. It now trades at 3.92, bolstered by Malaysia's 5.1% GDP growth in Q4 2025 and expectations of sustained commodity export earnings.
The same dynamic creates winners elsewhere in the region. Indonesian workers in Malaysia can now remit RM2,341 monthly (10 million rupiah) to families, with RM1 equivalent to 4,269.87 rupiah — the most favorable rate in over a decade.
The Currency Arbitrage Dilemma
For Mohd Faizal Abdul, a 26-year-old cleaner earning SGD1,300 monthly, the solution is painful recalibration. He must tighten spending in Malaysia while maintaining vehicle installment payments locked in at older exchange rates.
This is the arithmetic of ASEAN's deepening integration. Ten countries, 700 million people, one region — and for hundreds of thousands of cross-border workers, currency movements determine whether regional connectivity delivers prosperity or precarity.
