Inflation Across the Causeway

I was across the Causeway with my family over the weekend. I would like to make it clear that this trip was not to exploit the favourable exchange rate and government subsidies, but was in search of things that we are unable to find in Singapore. (Malaysians hold on to slightly more traditions than Singapore, and my mom was there looking for some traditional items for my brother’s upcoming nuptials)

We crossed in Malaysia via the Causeway. One would immediately notice the reduced traffic on it. It appears that not as many Singaporeans are heading up north, and we were across both checkpoints in 45 mins. This was mainly due to the stringent Mas checks on the Singapore end. There was no jam on the Causeway, and we cleared Malaysian customs almost immediately.

There was less traffic on the Malaysian roads. With the price of petrol these days, I think a lot less Malaysians are out and about. This was the same situation in the shopping centre we visited. Less Singaporeans, and a lot of empty parking lots. Petrol stations were empty. Imagine that!

Prices of food did not appear to have increased a lot unless one eats in a restaurant, and on the upside, prices of some “good-to-have but not essential” items had actually dropped.

We crossed the Causeway back into Singapore at 5.30. On the opposite side, we could see less cars entering JB for seafood. We crossed the Causeway back into Singapore in 20 mins.

I worry for our neighbours, cos the signs of a economy slow down are already there. With JB’s economy so dependent on Singapore, our reduced spending there will have a big impact on their local economy.

Some would say, hey, that is good! Singaporeans should spend money in Singapore and not lose forex into Malaysia. My reply would be that our stability is very much dependent on our neighbours’ stabilities. So, it will not do us any good if we have a listing economy across the Causeway. Next thing you know, exports of food to Singapore will be cut to drive prices down in Malaysia.

Do something BN! Tax Petronas and CPO producers! And please please, don’t go and do silly things like allow your civil servants to moonlight, or be a guarantor for housing loans for the poor. tsk.