The opening of the Johor Bahru-Singapore Rapid Transit System (RTS) Link is set to have a significant impact on consumer spending and tourism flows between Singapore and Johor Bahru. According to a study commissioned by the Singapore Business Federation (SBF), Restaurant Association of Singapore, and Singapore Retailers Association, Singapore residents are projected to spend S$1.05 billion more annually in Johor Bahru, while Johor Bahru visitors are expected to spend S$756 million more in Singapore. This results in a net increase in outbound spending for Singapore of S$290 million, equivalent to 0.4% of the country's total retail and food and beverage sales in 2025. The study also predicts a 51% increase in outbound trips by Singapore consumers, adding 11.2 million Singapore-to-Johor Bahru round trips annually. This is expected to boost Johor Bahru's economy, but it also poses challenges for Singapore's retail and F&B sectors. The study highlights the need for businesses to adapt beyond price competition by strengthening their offerings, experiences, and productivity. The west region of Singapore is projected to see the largest net outflow in spending, followed by the north-east, north, and east regions. This outflow is likely to stem from outbound spend on essentials such as groceries, drug stores, and dining. The study also found that central areas are expected to capture the lion's share of inbound spend, driven by higher-end retail, entertainment, hotel, and dining. However, businesses are concerned about the competitive pressure from Johor Bahru, especially in price-sensitive segments such as groceries, pharmaceuticals, and beauty services. The study recommends stimulating local spending through consumption vouchers and supporting stronger retail and F&B offerings. It also suggests boosting tourist spend by encouraging visitors to stay longer and explore more in Singapore. Additionally, the study calls for supporting business adaptation by addressing structural cost pressures and encouraging new operating and business models. The findings of the study have been shared with relevant government agencies, and the RTS Link task force has welcomed the recommendations. The task force hopes to stress-test these recommendations with the government and implement them to support local businesses.
