Singapore: Singaporeans' consumer spending in Johor Bahru is projected to increase by S$1.05 billion annually following the opening of the Johor Bahru-Singapore Rapid Transit System (RTS) Link, a study revealed.

According to BERNAMA News Agency, this finding is part of a joint study conducted by the Singapore Business Federation (SBF), Restaurant Association of Singapore (RAS), and Singapore Retailers Association (SRA), titled 'Impact of RTS on Singapore Retail and FandB Sector,' released today. The study anticipated that Singapore's retail and food and beverage (FandB) businesses could gain S$756 million in incremental annual spending from Johor Bahru visitors due to enhanced connectivity.

The RTS Link is expected to result in a net incremental outbound spending of S$290 million annually, equivalent to 0.4 percent of Singapore's total retail and FandB sales in 2025. Prior to the RTS, there were approximately 19.4 million annual round trips from Singapore to Johor Bahru, and 5.9 million from Johor Bahru to Singapore, using current transport methods. The study projects that the RTS Link will add 11.2 million Singapore-Johor Bahru round trips and 3.3 million Johor Bahru-Singapore round trips annually, with an estimated daily ridership of 39,700 trips.

The report highlights that the RTS Link will increase competition for Singapore's retail and FandB businesses while attracting more Johor Bahru visitors to Singapore, especially for premium retail, entertainment, and major lifestyle events. It predicted a 51 percent rise in outbound trips by Singapore consumers and noted that 34 percent of Johor Bahru respondents plan to visit Singapore for events post-RTS launch, up from 24 percent today.

SBF chief executive officer Kok Ping Soon remarked that the RTS Link will transform consumer travel, shopping, and dining between Singapore and Johor Bahru. He emphasized that while this creates opportunities for Singapore businesses to attract more visitors, it also intensifies competitive pressure, particularly for the retail and FandB sectors. Businesses must innovate beyond price competition by enhancing their offerings, experiences, and productivity, and there is a need for collaboration between industry and government to help them compete in a more connected cross-border market.

The 4-kilometre RTS Link, connecting Bukit Chagar in Johor Bahru to Woodlands North in Singapore, is scheduled for completion and public opening in January 2027.