JB residents face rising cost of living amidst tourism boom, food & commodities more expensive

JB residents see higher cost of living due to tourism & inflation

As Singaporeans flock to Johor Bahru (JB) for day trips and shopping, visitorship has grown in the southern Malaysian state – over 16 million people visited Johor in 2023, according to Tourism Johor.

Singaporeans made up the bulk of this number, reported The Star.

But tourism has arguably come with a price as JB residents are struggling with the cost of living due to inflation and raised prices for food and other commodities.

Eatery owners are also feeling the pinch due to increases in ingredient costs, among other reasons.

MS News spoke to concerned JB residents about the cost of living across the Causeway. One stated that prices have risen by 10 to 30%, while another said she’ll have to cut down on her expenses due to the rise.

Resident shares cost breakdown of living in JB

Ashlyn Ong, a 32-year-old JB resident, shared with MS News the costs she incurs with her boyfriend monthly:

• RM200 (S$56.83) for electricity bill
• RM10 (S$2.84) for water bill
• RM100 (S$28.42) for internet bill
• RM150 (S$42.63) for fuel
• RM600 (S$170.50) for groceries
• RM700 (S$198.92) for food & beverage and other expenses

This works out to RM1,760 (S$500), said Ms Ong, who works in customer service.

Asked how she feels about the current cost of living, Ms Ong shared that she thinks it’s “normal and reasonable” considering current inflation rates.

However, she also pointed out that certain prices have risen due to Singaporeans coming over to JB.

“More Singaporeans are coming in to make transactions for groceries, shopping, massage, manicure, and facials,” she said.

“For example, the further away from JB, the lower the cost for a plate of chicken rice,” Ms Ong claimed.

To ease the financial burden, Ms Ong said she’d cut down on “unnecessary” meals at restaurants or cafes, which can cost between RM50 to RM80.

Additionally, she’d be more calculative when purchasing groceries.

Are Singaporeans to blame?

Several factors may contribute to the rise in costs, but at least one resident believes that Singaporean shoppers and diners could be a large one.

Johor Domestic Trade and Cost of Living Ministry (KPDN) director Lilis Saslinda Pornomo said in Feb that data doesn’t support the claim that prices of goods in JB have become more expensive because of Singaporeans visiting.

“The ministry has been actively carrying out inspections, and we found the supply and selling prices of essential goods still in accordance with the set rates,” she said.

However, Johor Bahru Befrienders’ Danny Loo echo Ms Ong’s claims, as he told The Star in March.

“Singaporeans who shop and dine here also contribute to costlier food,” he’d said.

There is also a perception, according to him, that many JB residents work across the Causeway and earn Singapore dollars, causing prices to rise.

Some in JB are “economic refugees” from Singapore

A significant number of Malaysians do live in JB but commute to Singapore daily for work to take advantage of better salaries there.

For many of them, the cost of living in JB is offset by their greater purchasing power from earning money in Singapore dollars.

JB resident Ryan Low, 42, said that prices have gone up by “easily 10-30%” in general. But inflation has hit everywhere globally, not just Malaysia.

Imported goods, especially food and groceries in particular, have seen sharper rises.

To counter this, he said he’d buy more locally made products which are still relatively inexpensive.

At the same time, the property investor, who runs YouTube channel AlphaMarketingSG, said he is not overly concerned by the rising prices, especially in comparison with Singapore’s “even higher costs”.

“For myself who still derives income in Singapore and spends a lot of time in Singapore, spending in Johor Bahru is still better than Singapore,” he said.

JB allows us to be ‘economic refugees’ from Singapore’s even higher costs.

A rise in food and energy prices due to inflation, as well as the 9% GST, are among the factors driving high costs on the Little Red Dot.

Owning a car and house is also significantly more expensive in Singapore compared to Malaysia.

Others like Tengku Mohamed Damaishah Tengku Abdul Aziz, 53, echoed his view. The Singaporean told The Star in a 14 April article that the lower cost of living in JB appeals to him.

“I prefer to stay in Johor Baru because it’s close to Singapore. It’s important for me to be within two hours of a Singapore hospital in case of a medical emergency,” he said.

F&B operators in JB face pressure due to increased cost

Mr Tee, a social worker with non-profit organisation 448 Food Bank Johor, noted that the sales and service tax (SST) in Malaysia has risen by 2% to 8% since 1 March this year.

The SST replaced the GST in 2018 and imposes a tax on taxable goods manufactured and sold, used or disposed by a registered manufacturer in Malaysia or imported into Malaysia, according to MySST.

The other component – for services – imposes a tax on “any taxable services provided in Malaysia by a registered person in carrying on business”.

Though the F&B industry is exempt from this increase and the SST remains at 6%, Mr Tee told MS News that some F&B operators have quietly increased their prices.

“Ready-to-eat food, coffee, and tea prices have risen, while some F&B operators have chosen to absorb the increase themselves,” the 36-year-old operations executive said.

According to Mr Tee, interviewed operators admitted that if costs become too high, they will consider raising prices.

“The three main reasons for price increases are food ingredient costs, labour costs, and expenses such as rent and utilities.”

“Among these, food ingredient costs account for the largest proportion. The main reason for price increases is the rise in costs, especially pork.”

The multi-faceted problem for JB residents

Even as Singaporeans look to JB as a retirement home due to lower costs, Malaysians continue to see Singapore as a better place to work than their home country, even though commuting can take at least four hours there and back.

As the ringgit remains at RM3.50 to S$1 as of 25 April, the perception remains for many Malaysians that earning Singapore dollars would lead to a better quality of life back home.

However, as some have noted, this line of thought has led to raised prices in response, hurting local residents who live and work there.

That said, Singaporeans don’t appear solely to blame. Inflation, a weaker ringgit, as well as raised costs across the board due to the SST rise in March also contribute to the problem.

One solution appears to be to live away from the city, partly driven by rising cost of housing even in JB.

Retail shop manager Beanz Ho, 31, told TODAY in Nov last year that he chooses to stay in Kulai, which is around 33km from JB. He noted that a house in JB which would set him back an unaffordable RM800,000 to RM1 million.

Malaysian government hopes to address cost of living issues

The federal government appears aware of the issue, not just in JB but in the whole of Malaysia.

In 2024, the government said it’d allocate RM10 billion in monetary assistance through Rahmah Cash Contributions (STR).

This cash aid is set to benefit about 60% of Malaysia’s population.

A total of 8.7 million people will benefit from the STR, Malaysian prime minister Anwar Ibrahim said.

Cost of living pressures may continue regardless, but steps are being taken to address them.

Also read: S’poreans spending in JB said to be among factors behind rising cost of living there

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Featured image adapted from cattan2011 on Flickr.