Malaysian developers tout weak ringgit as key selling point

Singapore

EXTREME weakness in the ringgit is presenting a lower entry cost for investors hoping to own a piece of property in Malaysia - a tune increasingly sung by developers as a value proposition when marketing their projects in Singapore. But economists and forex strategists are not lifting their bearish views on the ringgit just yet.

The recent plunge in the ringgit has also become a double-edged sword - while providing that bargain-hunting window for prospective buyers (assuming that the ringgit does not fall further), developers are faced with higher marketing expenses here given the relative strength in the Singapore dollar.

This has placed some developers in a dilemma, said Doris Tan, head of international residential properties at JLL. She noted that there is the risk of the ringgit falling further, though this could be cushioned by the f…