Johor’s Chief Minister has sounded the alarm on rising living costs in the southern Malaysian state, attributing much of the pressure to the weekend influx of Singaporeans crossing the Causeway for cheaper groceries and dining.
According to local media, Datuk Onn Hafiz Ghazi highlighted that Johor Bahru, in particular, has become noticeably more expensive for residents, especially when compared to other parts of Malaysia. A contributing factor, he said, is the wave of Singaporeans who flood into Johor every weekend to take advantage of the weaker ringgit, inadvertently driving up prices in the process.
“For instance, a plate of nasi lemak with fried chicken in Johor Bahru now costs around RM9 (S$2.71), compared to RM7 (S$2.11) for the same dish in Kuala Lumpur,” Onn Hafiz pointed out. “That clearly shows Johor is becoming more expensive.”
Property Boom Also Fuelled by Singaporean Demand
Aside from food, rental and property prices are also climbing at an alarming rate. Onn Hafiz revealed that a developer in Johor had sold all 300 units in a new housing project — a clear sign that demand remains red-hot. However, he warned that such developments are contributing to a growing affordability crisis for locals.
“Property prices in Johor are now either rising or already higher than some areas in Singapore,” he cautioned. “We must ensure that affordable housing is available so that Johoreans are not priced out of their own state.”
Balancing Inflation and Growth
In response, the Johor state government is exploring policy tools to address inflation without stifling economic growth. Onn Hafiz acknowledged that while foreign spending — particularly from Singaporeans — has been a major driver of the local economy, it must not come at the expense of residents’ ability to afford basic necessities or own a home.
The chief minister also hinted that further measures could be rolled out to better manage this balancing act, though details were not provided.
A Double-Edged Sword
Johor’s proximity to Singapore and favourable exchange rate have long made it an attractive destination for Singaporeans seeking more bang for their buck. However, what’s a weekend bargain for one side of the Causeway is increasingly becoming a burden for the other.
While tourism and retail benefit from cross-border spending, the resulting price hikes in essentials like food and housing are leaving many Johoreans squeezed. As the state tries to address inflationary concerns without derailing growth, the challenge remains in crafting policies that cater to both locals and the lucrative flow of cross-border shoppers.
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