Sales have doubled at Uncle Lim’s durian farm as Singaporeans flood over the border into Malaysia to buy the spiky, stinky fruit, lured by the cheapest exchange rates since the countries separated 50 years ago.
The Malaysian ringgit’s weakness means they can now buy at least two top-grade durians there for the price of one in Singapore. The Southeast Asian native fruit - known for its sweet, custardy flesh and banned from the city-state’s subways and hotels because of its pungent odour - can retail for more than $30 apiece in Singapore.
“I receive a call every 10 minutes right now, on top of Facebook and WhatsApp messages,” said Wesley Loo, who organizes bus tours to his father-in-law’s orchard in the southern Malaysian state of Johor. “One of the reasons is the weaker ringgit.”
Singapore’s dollar rose to a record 2.80 ringgit on Thursday (18 May), up more than five per cent this year, and currency forwards project it will strengthen to 2.84 in 12 months. More than three decades ago, the currencies were close to parity, according to data compiled by Bloomberg that go back to 1981.
While Singapore’s currency has been supported by central bank expectations of a pickup in inflation, plunging crude oil prices have dragged the ringgit to a nine-year low against the U.S. dollar.
News by Bloomberg, edited by ESM
