It’s official.
9% GST is now the rate everyone pays on all GST-taxable items.
The quantum of the 1% increase depends on the item you’re purchasing.
Having a $20 meal with GST? That 1% hike costs you an extra $2.
Buying a $10,000 luxury bag? That additional 1% sets you back as much as a decent meal.
During my 7 years of stay in Singapore, I’ve come across 2 different types of Singaporeans – The Crazy Rich Asian, and The Crazy Rich Asian when in Malaysia.
Jokes aside.
As much as Malaysians and Singaporeans like to bicker with each other, the proximity of both countries allows citizens of both nations to enjoy each other’s beauty. The atas-ness of a first-world country, combined with the various cultures and taste palettes at an affordable price within just a few kilometer, is how Malaysia and Singapore complement each other as one.
I for one, appreciate being able to enjoy the best of both worlds.
That said, the additional 1% increase in GST might incentivise and increase a Singaporean’s trip frequency to Johor if they are feeling the pinch.
If you’re thinking about how to eke back that 1% worth of savings on your expenses, here are 10 things you can save money on in Johor.
1. Groceries
You might be cooking more at home to counter the GST hikes. Sure, you can opt for a better grocery provider like Sheng Siong Group Ltd (SGX: OV8), where you can find more deals and better bargains.
Or, you could consider strategising your weekly or monthly grocery haul from just across the border. This is a well-known drill for those practicing it for ages.
And you might even find better quality stuff at a cheaper price point across the causeway. Sometimes it’s not about being a cheapo, but rather being a more shrewd household budget planner.
2. Beauty salons
Beauty salons here offer a variety of services.
While it’s easy to point to the ladies who will benefit the most, the gents can also take advantage of these services.
I know plenty of working Malaysians and Singaporeans who make trips to Johor for manicures, pedicures, and hair treatments.
Hint, since Chinese New Year is around the corner, you might want to consider getting your pre-New Year haircut or highlights done in JB this time round, if you haven’t already done so.
You might still get charged at Chinese New Year rates (it activates one month before CNY I believe) but paying for it in Ringgit is certainly much better than paying in SGD.
3. Health screenings
This would cost a bomb if done in Singapore, but it’s much cheaper when done in Johor or other states in Malaysia.
Healthcare costs have reached seemingly preposterous levels these days. Thank goodness most corporations offer medical cards as an employee benefit.
However, the medical card coverage is fairly basic. Most smaller and medium enterprises don’t offer complimentary health screening packages as a benefit. It will be from our pocket to check on our health.
Depending on how comprehensive the tests are, it might set you back by a few hundred bucks to close to SGD1,000 or more.
JB or other parts of Malaysia still offer reasonably cheaper packages. Even if you opt to go for private healthcare providers in Malaysia for your health screenings.
4. Pregnancy & confinement
Yet another hefty bill to pay.
Among all the Malaysian PR or Malaysian converts, many of my friends or people I know still prefer to deliver their babies and undergo confinement back in Malaysia.
Even those who chose to have their newborn become naturalised Singaporean by giving birth in a Singapore hospital often opt to return to Malaysia for their confinement.
Again, confinement and pregnancy-related expenses aren’t exactly cheap. It is just the strength of the Singapore dollar and the value mums get by opting for confinement in Malaysia.
5. Health supplements
In the pursuit of health and wellness, supplements have become our modern-day vitamin water. From multivitamins to probiotics, we swallow capsules promising to fill in dietary gaps and optimise our bodies.
Just like many other items where it’s cheaper in Johor, supplements too can have drastic price differences when bought across the border.
And not to worry about product authenticity as the Guardians drugstore over at Johor is also owned by the same DFI Retail Group Holdings Ltd (SGX: D01).
6. Discretionary spending
If life has no enjoyment, then what is there to live for?
Singapore is well-known for being one of the most livable places on Earth for many reasons, and discretionary spending is one of them.
It is one of the visited places to soak up some atas vibes. Trust me, it just feels different even though atas places are everywhere.
But the price is steep, and it’s not easy to keep up with the Joneses (or Kardashians).
But one can always still choose to visit the Haidilaos in Johor. It allows you to stretch your dollar more to get the same quality.
Not to mention the Premium Outlets and the luxury resorts in Desaru. Are Singapore hotels too expensive for a staycation?
No problem!
7. Theme park experience
I heard this story firsthand from an acquaintance.
One of the best ways to keep kids entertained and happy, as far as I know, is the annual pass at the Singapore Zoo or Universal Studios.
This one Singaporean friend of mine, went the other way – getting an annual pass for Legoland Johor.
He takes his family to Legoland monthly, ensuring the annual pass is well utilised.
I have not paid to enter both Universal Studios Singapore and Legoland Malaysia – the weather over here just doesn’t allow me to be out in the sun the entire day.
But when I heard how he went the other way instead of going to Sentosa, it blew my mind how brilliant that plan turned out to be.
8. Aesthetic
Our society has slowly latched on to aesthetics over the years. There are some malls where there are dedicated floors and wings that just house aesthetic clinics. That shows you how vanity has slowly becomes a need rather than just a want.
Again, enter Johor Bahru, the unassuming Malaysian neighbor across the causeway. The Ringgit stretches further, and aesthetic aspirations doesn’t have to break the bank.
Johor’s clinics, with their hushed promises of affordability and expertise, beckon like sirens to Singaporeans yearning for a more sculpted self. And post treatment you can just scoot back home to rest and recuperate.
9. Branded electronics
If you ever want to upgrade your branded consumer electronics and don’t mind crossing the border for any product warranties, Malaysia’s prices beat Singapore’s hands down.
Especially if it’s expensive. The pricier it is, the more savings you are getting by buying it in Johor.
An Apple Airpod Max can be cheaper by a hundred bucks.
A maxed-out spec Macbook Pro can be cheaper by 700 bucks.
That is a lot of money saved just by buying it across the border in Johor.
10. Petrol
Those who drive in Singapore know what I mean.
Prices of petrol per liter are almost the same in both Malaysia and Singapore.
Just a difference in the currency.
Although it sounds a bit dumb to brave the customs checkpoint just to pump petrol (it is!), but hey, didn’t I just give you 9 other reasons to visit JB?
So long as you’re not breaking any rules, or end up jerking and tilting your car to squeeze every last drop into your car tanks (with the right RON 97 please!), it still helps to stimulate Malaysia’s economy.
A symbiotic relationship
While the 10 reasons I tabled above showcase how great JB or Malaysia is to Singaporeans, this does not in any way imply that Singaporeans need JB more than the other way around.
When it comes down to business, a successful transaction requires both willing buyers and sellers.
Johoreans enjoy a spillover effect from its proximity to Singapore.
Prices in JB are more expensive than in other Johor regions. Yet there is no less demand and customers.
The relationship between Singapore and Johor is a unique one – where citizens from both cities enjoy the currency arbitrage, and also the best of both worlds.
p.s. if you’re reading this with Chinese New Year just around the corner, you might want to head over to JB to kickstart your CNY shopping!