S'pore firms, residents take advantage of falling ringgit

S'pore firms, residents take advantage of falling ringgit -ST by mil Fei Fei

The Malaysian currency fell to an all-time low of RM 2.6287.

Businesses and property owners are taking advantage of cheaper ringgit to pay for their assets in Malaysia.

"We are linked by a little bridge, and the price difference is so big, plus with the favourable exchange rate, it is another push factor to entice Singaporean to rent or buy Iskandar."
- Property agent Germaine Ng

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On the other hand, Malaysians are coming here in droves to work, grow sales and even rent homes (those HDB owners who have PR).

Many cross border to do work on freelance basis...

I think IRAS will do well to plug this huge source of tax revenue leakage.

(17-02-2014, 09:59 AM)Contrarian Wrote: On the other hand, Malaysians are coming here in droves to work, grow sales and even rent homes (those HDB owners who have PR).

Many cross border to do work on freelance basis...

I think IRAS will do well to plug this huge source of tax revenue leakage.

Effect of loose PR policy. PR should have a explicit expiry date.

(17-02-2014, 09:59 AM)Contrarian Wrote: On the other hand, Malaysians are coming here in droves to work, grow sales and even rent homes (those HDB owners who have PR).

Many cross border to do work on freelance basis...

I think IRAS will do well to plug this huge source of tax revenue leakage.

Some of these things are catch-22 - they provide Singaporeans with generally lower prices for their services and products - bringing the currency advantage to some consumers here.

On the other hand, they disadvantage some local businesses (those against whom they compete in product sales) and local hires (where they work), and don't pay taxes into Singapore (except when they consume here).

Are this group of Malaysian (supposedly coming in droves) larger than those who are here legally and pay everything into the local system, including those who are subject to the same CPF restrictions as Singaporeans?

Just trying to provide another side of the argument. I honestly doubt Singapore government finances will be significantly worse off by not taxing this group of people.

10 years ago I engaged a Malaysian company to make my curtain. My brother-in-law had visited his shop in JB and recommended his service. He came to make measurements, we selected the material and paid $300 deposit. Using the same material would cost us double if made locally. We thought everything was fine, until he did not come back. Called him, the number is no longer in use. Made a police report. Police told us they will convey to the other side, but chances of getting back the refund is slim. My brother-in-law went there, the shop was closed. That guy simply vanished into thin air.

(17-02-2014, 11:43 AM)violinist Wrote: 10 years ago I engaged a Malaysian company to make my curtain. My brother-in-law had visited his shop in JB and recommended his service. He came to make measurements, we selected the material and paid $300 deposit. Using the same material would cost us double if made locally. We thought everything was fine, until he did not come back. Called him, the number is no longer in use. Made a police report. Police told us they will convey to the other side, but chances of getting back the refund is slim. My brother-in-law went there, the shop was closed. That guy simply vanished into thin air.

SG also have a lot of scammers. e.g. furniture fairs cheats (ordered already then MIA).

Lot of people get renovation contractors from Msia. Cheaper and better skills. Those guys just ride in their motorcycles.

My air con servicing is also from JB. Just registered a sole proprietor in SG to do business.

Even a famous choco cake company started off making cakes in JB and shipped them in.

SG is screwed by the high land costs/rentals. PAP Gov trying to mitigate it by higher SGD and importing FTs. The root problem is not solved.

As far as i know from the Msia friends, they will earn money here and spend in JB. Many come with petrol tank full, bring own food, find free parking etc. Some even bring stuffs here to sell. haha. For a star I think there shld really be a tax on HDB rental income for PR who intentionally buy HDB and rent out rooms, these activities shld be declared and special tax given. Maybe these money can go to build better highway and immigration checkpoints to serve them in return.

(17-02-2014, 11:23 AM)opmi Wrote: Effect of loose PR policy. PR should have a explicit expiry date.

Well they do - PR has to be renewed. Without a reasonable job, or evidence that you are "rooted" here, it will be taken away at the end of the period.

Question - if the PR marries a citizen, has HDB here, kids go through Singapore schooling and sons take on citizenship without trying to bypass the NS requirements, but the person chooses to retain his/her original country citizenship, is he / her free-loading or is the person considered to be "rooted" here?

Sometimes, for a place without boundaries, the discussions on the internet can be all about absolutes.

In the mid 90s, ringgit was 1.76 against S$1, today it's S$1 against RM2.62.

(17-02-2014, 08:25 AM)chialc88 Wrote: The Malaysian currency fell to an all-time low of RM 2.6287.

Actually there are many loopholes to try and get the best out of both worlds (PR and citizen country) and there is only so much our gahmen can do to ensure a proper system where PRs are not exploiting solely the good of PRship without contributing back at all.

If the situations and conditions were reversed, like it was maybe 40 years ago, you will see the same pattern of Singaporeans flocking north of the border to work, scrimp, and then come back to spend while Malaysians will come here and spend like kings.