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

Singapore (ANTARA) - Singaporean consumers are expected to spend an additional 1.05 billion Singapore dollars (1 Singapore dollar = Rp13,989) each year in Johor Bahru, Malaysia’s southernmost city bordering Singapore, once the cross-border rail link, the Rapid Transit System (RTS) Link, connecting the two cities opens, according to a study released on Thursday (16 July).

The study, conducted by the Singapore Business Federation, the Restaurant Association of Singapore, and the Singapore Retail Association, found that visitors from Johor Bahru are expected to spend an additional 756 million Singapore dollars each year in Singapore.

Singapore and Johor Bahru have long maintained close economic and social ties. Traffic congestion frequently occurs on the land border crossings connecting the two, particularly during peak hours and holiday seasons.

Currently, around 19.4 million round trips per year are made from Singapore to Johor Bahru, and 5.9 million trips in the opposite direction, using existing transport modes.

Once operational, the rail link is expected to generate an additional approximately 11.2 million round trips per year from Singapore to Johor Bahru and 3.3 million trips from Johor Bahru to Singapore, equivalent to around 39,700 daily passengers.

The study also noted that the RTS Link could increase competition for Singapore’s retail and food-and-beverage sectors, which are currently facing pressures related to labour, costs, and rent.

“This shift is structural, not merely incremental. Businesses must adapt beyond price competition by strengthening their offerings, experience, and productivity, while industry and government need to work together to help enterprises compete in an increasingly connected cross-border market,” said Kok Ping Soon, chief executive of the Singapore Business Federation.