Many Singaporeans travel to Malaysia to enjoy the lower cost of living there. Whether it’s for a family holiday, a day trip to stock up on necessities, or having some free time while on a work trip, Malaysia is a great country to enjoy local products and services at a cheaper price compared to what we would pay for in Singapore.
However, just because things may be cheaper in Malaysia doesn’t mean we should spend recklessly. Here are some financial mistakes that we should avoid making in Malaysia.
#1 Buying Something You Can’t Bring Home To Singapore
While the lower cost of goods in Malaysia, thanks to the favourable exchange rate between the Singapore Dollar (SGD) and the Malaysian Ringgit (MYR), might be tempting, it’s essential to remember that certain items cannot be legally brought back to Singapore. Some products, like chewing gum and firecrackers, are well-known to be banned in Singapore. However, there are other, more common items that, while perfectly legal to possess in Singapore, cannot be imported from Malaysia.
For instance, meat and meat products, such as Bak Kwa (barbecued sweet meat) and pork floss, are prohibited from being brought into Singapore from certain countries, including Malaysia. This restriction extends to other meat items, including poultry, eggs and any form of meat.
In addition, while tobacco-related products, like cigarettes, may be much cheaper in Malaysia, they are classified as dutiable items, and bringing them into Singapore without declaring and paying the required duties is illegal. Therefore, it’s crucial to be mindful of these regulations to avoid penalties when returning to Singapore.
If you are caught for any of this, you may be penalised. At the very least, you will be asked to dispose of these items, resulting in a financial loss.
#2 Buying Stuff That Are More Expensive In Malaysia
While it’s true that many things in Singapore are generally more expensive than in Malaysia, it doesn’t mean that everything in Malaysia is automatically cheaper. The last thing you want is to believe you’re “saving” money only to spend more on a product that could have been bought at a lower price in Singapore.
At DollarsAndSense Malaysia, our colleagues have identified certain products that are, in fact, cheaper in Singapore than in Malaysia. While this list may change over time, you should be cautious about some categories of items when shopping in Malaysia. These include electronic products, especially the latest models, and items from Singapore-based brands. You may not save much, if any at all, buying certain luxury brands.
So, while enjoying the potential savings that shopping in Malaysia can offer, doing a little research and comparing prices to avoid overpaying for certain items can also be useful
Read Also: Popular Lifestyle Brands That Are Cheaper In Singapore Compared To Malaysia
#3 Pumping The Wrong (V-Power Racing) Petrol
Every driver heading into Malaysia from Singapore knows that filling up on petrol is a must-do, especially since fuel prices are significantly lower. It’s almost a ritual to stop by a petrol station just before crossing the border back into Singapore. However, while pumping petrol in Malaysia is generally straightforward, there are a couple of critical rules to keep in mind.
First and foremost, do not pump Ron 95 petrol. The Malaysian government subsidises this grade and reserves it for Malaysian citizens. This can confuse Singaporean drivers, as many of us are accustomed to using grade 95 petrol in Singapore. In Malaysia, though, Ron 95 is off-limits for foreign-registered vehicles.
In Singapore, higher-grade petrol, such as Ron 98 and premium grades, typically costs 20-30% more. However, in Malaysia, it’s important to be even more vigilant when choosing the right fuel. While Ron 97, which is what Singapore-registered vehicles should be using, is priced at around RM 3.25 per litre (slightly under S$1), offering great value, the situation changes drastically if you opt for premium fuels like V-Power Racing. At about RM 6.15 (S$1.84) per litre, this high-performance fuel is nearly twice the price of Ron 97.
The main takeaway for Singaporean drivers is to stick to Ron 97 when refuelling in Malaysia. It offers significant savings compared to Singapore prices, but be cautious about opting for premium fuels, as the price jump can be substantial.
#4 Don’t Pay in Singapore Dollar (SGD)
Given Singapore’s close proximity to Malaysia, some establishments in Malaysia may accept payment in Singapore Dollars (SGD). However, the exchange rate in these cases is typically unfavourable and uncompetitive.
A similar principle applies when making payments by card. If you are given the option to be charged in either SGD or Malaysian Ringgit (MYR), it is generally better to choose MYR. By doing so, you’ll benefit from the prevailing market exchange rate, which is usually more advantageous than the rate provided when opting for SGD.
Read Also: 9 Ways To Save Money On Your Next Visit To Legoland Malaysia
Here’s a handy infographic summarising the financial mistakes that we are potentially making in Malaysia:
Photo by Ven Jiun (Greg) Chee on Unsplash
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