S'pore retailers feel the pinch as more people are spending overseas on cheaper buys

A stronger Singdollar, pricier goods and services, and the resumption of travel plans post-pandemic have contributed to a growing number of locals preferring to spend more overseas.

- Claire Huang

This has added pressure to Singapore's soft retail sector.

The Singapore Retailers Association (SRA) told The Straits Times that April's sales figures have not been favourable, with most retailers reporting negative performance compared with the same month in 2023.

It said this was most likely due to the appreciation of the Singdollar.

Singapore, which uses the exchange rate as its main policy tool rather than interest rates, has let the local dollar appreciate against major trading partners' currencies to counter price pressures, amid higher inflation.

"The increased value of our currency, combined with the Singaporean penchant for travel, causes consumers to seek cheaper alternatives, especially in Japan, South Korea and Malaysia," SRA said.

The association noted that Singaporeans consider a day trip to Johor Bahru something perfectly doable over a weekend or a public holiday, and tend to do their shopping and personal grooming there for a fraction of the price here.

For instance, a full manicure and pedicure costs $35 in Johor, compared with between $80 and $120 in Singapore.

"The stronger currency has also encouraged Singaporeans to take more holidays, and they tend to reserve their income to spend overseas, despite the additional costs incurred," SRA said.