Singaporeans are expected to show keen interest in property in the Iskandar Malaysia development project due to the weaker ringgit.
Johor Real Estate and Housing Developers Association branch chairman Hoe Mee Ling said it was difficult for the average Singaporean to own a landed residential property in the republic because the prices for such premises were beyond the reach of many.
â€œJohor Baruâ€™s close proximity to Singapore is an added advantage (for Iskandar Malaysia) to attract Singaporean buyers because they can have the best of both worlds,â€ Hoe said.
Also, the stronger Singapore currency would be an added incentive, she added.
However, Hoe said that the Government must stabilise the ringgit to attract foreign property buyers who wanted to make investments with a view of getting good returns in the long term.
Other businessmen also believed that a weak ringgit was not good for the Malaysian economy because the country would only reap short-term benefits and suffer from the situation in the long run.
SMI Association of Malaysia president Teh Kee Sin said proactive measures from the Government were necessary to help stabilise the ringgit against other currencies such as the US and Singapore dollar.
He said too much fluctuation in the ringgit was not good for businesses.
â€œLocal manufacturers importing raw material are paying in US dollars and a higher dollar means their production costs will also rise,â€ he said.
Teh it would also be difficult for small and medium industries to do their financial planning if the exchange rate between the ringgit and US dollar kept fluctuating.
Bank Negara should come up with measures to mitigate the decline of the ringgit as the currency was expected to weaken further in the coming months, he said.-The Star