Batam Welcomes Surge in Shoppers from Singapore and Malaysia

TEMPO.CO, Jakarta - In recent months, the number of foreign tourists from Singapore and Malaysia visiting Batam City, Riau Islands Province, Indonesia, has increased. This area is relatively close to tourist destinations between the two countries. Dilla, a Batam resident who works in the Nagoya area, said that several malls have recently been busy with foreign tourists. "I happen to go to Grand Mall Batam almost every day, and it's indeed crowded with tourists from Singapore and Malaysia," Dilla told Tempo on Monday, January 19, 2025. She also noticed that even on weekdays, there are still tourists visiting the shopping center. "Usually only on weekends, right? On weekdays, there are also Singaporean and Malaysian tourists," she said. A similar sentiment was expressed by the Chairman of the Foreign Exchange Affiliation (APVA), Amat Tantoso, who is also a money changer in Batam. According to him, based on observations at markets and malls, Singaporean and Malaysian tourists do indeed come to Batam in large numbers. "Just check out Penuin Market, BCS Mall, Grand Mall, and the Thamrin Nagoya area," said Amat on Monday, January 19, 2025. Shopping While on Vacation He suspects that the tourist arrivals were driven by the weakening rupiah exchange rate against the Singapore dollar, Malaysian ringgit, and US dollar. The ringgit, he said, has risen 15.2 percent in the past year, followed by the Singapore dollar by 1 percent, and the US dollar by 3.4 percent against the rupiah. "These increases automatically make prices in Singapore and Malaysia more expensive, so they choose to go to Batam to shop while on vacation," he said. Amat also saw a number of tourists arriving with empty suitcases, then returning home with suitcases full of groceries. "They even shop for their daily needs in Batam. Just try visiting the Sunday market; it's packed with Singaporean and Malaysian tourists," he said. He estimated that in recent times, around 10,000 tourists have come to Batam every weekend. In addition to shopping, Amat said, these tourists also enjoy the culinary delights of Batam City. This is because food prices in Batam are much cheaper than in their home countries. "Just imagine, there a single portion of food can cost Rp1-1.5 million, whereas here (in Batam) Rp100,000 is enough to get a good meal," said Amat. Tourists who come to Batam to shop also take advantage of massage and salon services. These services are considered much cheaper than in Singapore and Malaysia. "Most of the time I see them coming on Saturdays and Sundays, so they stay one night. This also impacts hotel occupancy rates," said Amat. According to Amat, hotels in Batam are now fully booked on weekends. Some time ago, even a Malaysian business association held a meeting in Batam. "This is a business opportunity for us in Batam, considering the high cost of living there," he said. Furthermore, Amat said, with Chinese New Year approaching, many Singaporeans and Malaysians come to Batam City to shop. He sees this as an opportunity for Batam City. The government is considered to have made the right move in developing the "New Nagoya" area, but development also needs to be more equitable. "Especially amidst declining local purchasing power, this tourist influx is quite helpful," he said. Read: Batam-Singapore Ferry Guide 2026: Schedule and Ticket Prices