On August 4, The Arcade in Raffles Place saw extensive queues of individuals eager to purchase Malaysian ringgit, which has plummeted to unprecedented lows against the Singapore dollar. Currently, the exchange rate stands at an all-time high of RM3.23 for each Singapore dollar, a significant increase from RM3.0857 at the start of the year.

However, not all currency exchange shops had Malaysian ringgit available for purchase. Some displayed notices indicating a selling rate of zero, reflecting a lack of stock. Interestingly, a few money changers mentioned they have ceased stocking ringgit altogether, opting instead to buy the currency from customers looking to convert their ringgit into Singapore dollars.

Despite the increased volume of transactions compared to currencies like the Thai baht or Vietnamese dong, several money changers expressed ongoing losses from dealing in ringgit. Mr. San Kabeer, 50, owner of Universal Money Xpress, stated that the long lines were challenging to manage with a small staff and that the slim profit margins made it impractical to continue offering the currency.

Likewise, Mr. Mohammed Ismail, 50, owner of Hasan Trading Money Exchange, agreed that the labor involved was not worth the meager profits. Many other money changers echoed concerns over the instability and risk associated with the declining value of the ringgit.

Purchasing ringgit stock in advance poses a dilemma, as they often have to sell at a lower rate than what they initially paid. Mr. Rahmed, 57, an employee at Golden Jinna, remarked that they rarely keep a stock of ringgit, primarily selling it to other money changers at wholesale prices.

For those smaller operations, significant sales volume is required to make a profit, making it difficult for them to compete. Mr. Vanchilabbai Sharifdeen, 53, owner of VS Exchange, highlighted that selling RM100,000 (approximately S$30,947) yields a profit of only $10 to $30. He emphasized that high sales do not necessarily translate into high profits.

Despite these challenges, queues continue to grow. Employees at Dazzling Xchange noted they run out of ringgit daily, but they have reduced their stock levels due to low profit margins. Some customers have taken advantage of the situation, with one individual exchanging $30,000 in a single transaction.

However, most exchanges range from $300 to $500 as individuals prepare for trips to Malaysia during the National Day long weekend. Many prefer using cards over cash while abroad. Ms. Hannah Chew, 26, shared her plan to visit relatives in Kuala Lumpur, stating she would only carry cash for essential purchases. Similarly, Ms. Jaz Ng, 27, who frequently visits Johor Baru for affordable beauty treatments, emphasized that inflation affects her spending, regardless of favorable currency rates.