Batam. A surge in visitors from Malaysia and Singapore is boosting trade and small businesses in Batam, as favorable exchange rates encourage tourists to shop and spend more in the Indonesian island city.

Batam has long been a popular short-haul destination for visitors from neighboring Singapore and Malaysia due to its close proximity and relatively lower prices. Located just around 20 kilometers from Singapore by ferry, Batam can be reached in less than an hour, making it one of the most accessible overseas destinations for weekend trips, shopping, and culinary tourism.

Nagoya Hill Mall, one of Batam’s largest shopping centers, recorded around 150,000 visitors over the past week, up from roughly 130,000 in previous weeks, according to mall management. Malaysian tourists accounted for the largest increase in arrivals.

The growing number of foreign visitors has invigorated activity at shopping centers, restaurants, and souvenir stores across the city. Crowds were seen filling retail outlets, culinary centers, and gift shops at Nagoya Hill during the recent holiday period.

Nagoya Hill Mall Operational and Public Relations Manager M. Haris Fadillah said international tourist arrivals rose about 40% compared with earlier months, driven mainly by Malaysian travelers taking advantage of the long holiday season and stronger purchasing power.

“There has been around a 40% increase in foreign visitors, with most tourists coming from Malaysia. Visitors from Singapore and Malaysia are coming to Batam to shop,” Haris said.

Many retailers said Malaysian and Singaporean visitors consider products in Batam more affordable than in their home countries. The Malaysian ringgit has strengthened about 17% year-on-year against the rupiah to Rp 4,370, while the Singapore dollar has risen around 12% to Rp 13,838.

The positive impact has also been felt by small and medium-sized enterprises (SMEs), particularly businesses selling local souvenirs and food products.

Aprilia, known as Lia, a layer cake seller at Nagoya Hill, said most of her customers are foreign tourists from Singapore and Malaysia.

“Most buyers are tourists from Singapore and Malaysia. They usually buy layer cakes as souvenirs, and in one purchase they can buy between five and 10 boxes,” Lia said.

She added that the most popular products among tourists include original, chocolate, and prune-flavored layer cakes.

The increase in tourist traffic was also visible in Batam’s crowded food centers and shopping districts.

Nur, a tourist from Malaysia, said she frequently visits Batam and considers the city one of her favorite destinations in Indonesia.

“We come to Indonesia for holidays and food. I like traveling around Indonesia, including Java. In Batam I enjoy nasi padang and seafood,” she said.

Another Malaysian visitor, Habibah, who was visiting Batam for the first time, said she was impressed by the variety of local products available and the relatively lower prices compared with Malaysia.

“In Batam it is easy to find goods, and the prices are cheaper compared with Malaysia,” she said.

Local businesses and tourism operators hope the increase in international visitors will continue supporting not only the tourism sector, but also trade, SMEs, and Batam’s broader economy.