New Singapore-Malaysia rail link to boost cross-border spending

Singaporean consumers are expected to spend an additional S$1.05 billion (S$1 = Rp13,989) annually in Johor Bahru, Malaysia’s southernmost city bordering Singapore, once the cross-border Rapid Transit System (RTS) Link opens, according to a study released on Thursday. The study, conducted by the Singapore Business Federation, the Restaurant Association of Singapore, and the Singapore Retailers Association, also found that visitors from Johor Bahru are projected to spend an additional S$756 million each year in Singapore. Singapore and Johor Bahru have long shared close economic and social ties, with traffic congestion frequently occurring at the land border crossings connecting the two. Currently, approximately 19.4 million round trips are made annually from Singapore to Johor Bahru, and 5.9 million in the opposite direction, using existing transport modes. The study estimates the RTS Link will generate an additional 11.2 million round trips per year from Singapore to Johor Bahru and 3.3 million from Johor Bahru to Singapore, equivalent to a daily ridership of around 39,700. The study also noted that the RTS Link could heighten competition for Singapore’s retail and food and beverage sectors, which are already facing pressures related to labour, costs, and rent. Kok Soon Ping, chief executive of the Singapore Business Federation, said the change is structural rather than incremental, and businesses must adapt beyond price competition by strengthening their offerings, experiences, and productivity, while industry and government work together to help businesses compete in the increasingly connected cross-border market.