RTS Link Projected to Cause S$290 Million Annual Spending Outflow

A joint study by the Singapore Business Federation (SBF), the Restaurant Association of Singapore (RAS), and the Singapore Retailers Association (SRA) warns that the Johor Bahru-Singapore RTS Link will create a net annual spending outflow of S$290 million. Scheduled to open in January 2027, the rail link is expected to generate 11.2 million annual round trips from Singapore and 3.3 million from Johor Bahru, with a daily ridership of 39,700 trips.

Singaporean consumers are projected to spend S$1.05 billion annually in Johor Bahru, primarily on beauty services, pharmacies, groceries, and dining. In contrast, visitors from Johor Bahru are expected to spend S$756 million in Singapore, focusing on hotels, entertainment, and high-end retail. The study predicts a 51% increase in outbound trips by Singaporean consumers, intensifying competition for local retail and food and beverage sectors already facing manpower and rental pressures.

To mitigate these structural shifts, industry groups recommend government interventions including time-bound consumption vouchers, property tax relief for upgrades, and expanded manpower flexibility. They also propose developing Woodlands and the Northern Gateway as economic hubs. The associations emphasize that businesses must move beyond price competition by enhancing productivity and the overall consumer experience to remain competitive in a more connected cross-border market.