Singapore Ringgit Exchange Rate: How Currency Benefits SG Buyers

Currency Advantage Makes Melaka Property Investment More Attractive

For Singapore buyers, investing in Malaysian property has always had a natural advantage: exchange rate differences. In 2025-2026, the Singapore Dollar (SGD) to Malaysian Ringgit (MYR) rate continues to hover at favorable levels, creating unique opportunities for Singapore investors.

This article analyzes how exchange rates affect your investment returns, calculates real gains, and shows why Alor Gajah area is particularly attractive for Singapore buyers.

Current Exchange Rate Landscape (2026)

Rate Levels

Period	SGD to MYR Rate
2020	1 SGD = 3.05 MYR
2022	1 SGD = 3.15 MYR
2024	1 SGD = 3.20 MYR
2026 (current)	1 SGD = 3.18-3.22 MYR

Key point: Rate consistently stays above 3.0 favorable level.

Exchange Rate Impact on Purchasing Power

• Property discount: Effectively 6-7% cheaper than for local Malaysian buyers
• Management fees: Lower monthly expenses (in SGD terms)
• Renovation costs: Stronger SGD buying power
• Airbnb income: Earned in MYR, appreciates when converted to SGD

Investment Calculation: SGD Buyer vs Malaysian Buyer

Scenario: Alor Gajah Condo (RM450,000)

Malaysian buyer:

• Property price: RM450,000
• 20% down payment: RM90,000
• Loan: RM360,000
• Monthly installment (30 years, 4.5%): RM1,823
• Airbnb monthly income: RM4,500
• Monthly net income: RM2,677

Singapore buyer:

Item	MYR Amount	SGD Amount (at 3.2 rate)
Property price	RM450,000	SGD 140,625
20% down payment	RM90,000	SGD 28,125
Monthly installment	RM1,823	SGD 570
Airbnb income	RM4,500	SGD 1,406
Monthly net income	RM2,677	SGD 836

Annual ROI (SGD): 35.7% (based on SGD 28,125 down payment)

Exchange Rate Volatility Risk Management

Historical Rate Stability

• Past 10 years: SGD/MYR fluctuated between 2.9-3.3
• Extreme situations rare (2020 low 3.05, 2022 high 3.22)
• Overall trend: Stable above 3.0

Exchange Rate Protection Strategies

Strategy 1: Long-term Holding

• Short-term fluctuations have minimal impact
• 5-10 year investment horizon balances rates
• Property appreciation offsets exchange losses

Strategy 2: MYR Income Reinvestment

• Keep Airbnb income in Malaysia
• Use for mortgage, maintenance, management fees
• Reduce need for currency conversion

Alor Gajah: Ideal Choice for Singapore Buyers

Distance Advantage

• From Singapore: 2.5-3 hour drive
• Via Second Link Expressway: Avoid city traffic
• Suitable for weekend vacation use

Price Advantage

Comparison with Melaka city center:

Area	Average condo price	SGD price
Jonker Walk (heritage zone)	RM650,000	SGD 203,125
Melaka city center	RM450,000	SGD 140,625
Alor Gajah	RM350,000	SGD 109,375

Conclusion: Alor Gajah offers best value for Singapore buyers.

Airbnb Income Potential

• Target: Singapore weekend tourists
• Attractions: A'Famosa Resort, Premium Outlets
• Average occupancy: 55-60%
• Monthly income: RM4,000-5,000
• SGD income: SGD 1,250-1,562

Real Case: Singapore Investor Experience

Investor: Mr. Tan (Singapore citizen)

Investment Details

• Purchase: 2022
• Location: Alor Gajah, 2-bedroom condo
• Price: RM380,000 (SGD 118,750 at time)
• Use: Airbnb + personal weekend vacation

3-Year Performance

Year	Airbnb Income	SGD Income	Expenses (MYR)	Net Income (SGD)
2023	RM48,000	SGD 15,000	RM22,000	SGD 8,125
2024	RM52,000	SGD 16,250	RM24,000	SGD 8,750
2025	RM58,000	SGD 18,125	RM25,000	SGD 10,312
Total	RM158,000	SGD 49,375	RM71,000	SGD 27,187

3-year ROI: 22.9%

Investment Advice

Suitable Singapore Buyers

• Seeking overseas portfolio diversification
• Interested in Melaka tourism market
• Planning weekend vacation home use
• Understand long-term investment value

Investment Timing

• Current rate (3.18-3.22) favorable
• Alor Gajah prices still in appreciation phase
• Airbnb market demand continues growing
• 2026 is good entry timing

Start Your Investment Journey

Exchange rate advantage + Alor Gajah potential = ideal investment for Singapore buyers.

Key takeaways:

• Current rate offers 6-7% purchasing advantage
• Alor Gajah has most affordable prices
• Airbnb income earned in MYR, appreciates converting to SGD
• Professional management simplifies overseas investment

Next steps:

Singapore buyer?
WhatsApp us for SGD investment analysis

Interested in Alor Gajah?
Discuss investment options and ROI calculation

At iHousing, we help Singapore investors successfully enter Melaka market.