Singaporean Spending Set to Surge in Malaysia with New RTS Link
Jakarta, CNBC Indonesia — Singaporeans are expected to spend considerably more money in Johor Bahru, Malaysia, once the Johor Bahru–Singapore Rapid Transit System (RTS) Link begins operating in January 2027. The added value of this cross-border spending is estimated to reach US$810 million, or around Rp14.7 trillion, per year.
The finding comes from a study released on Thursday (16 July 2026). The study projects that additional spending by Singaporeans in Johor Bahru will far exceed the additional spending by Johor Bahru residents in Singapore.
By comparison, Johor Bahru residents are estimated to increase their spending by only about S$756 million, or roughly Rp10.5 trillion, per year in Singapore.
As a result, Singapore is projected to record a cross-border spending deficit of S$290 million, or around Rp4 trillion, each year. That figure is equivalent to about 0.4% of Singapore’s total retail and food and beverage (F&B) sector sales in 2025.
Beyond boosting spending, the RTS Link is also expected to drive a surge in public mobility. Trips by Singaporeans to Johor Bahru are projected to rise by 51%, an increase of around 11.2 million round trips each year.
The study was compiled by the Singapore Business Federation (SBF), together with the Singapore Retailers Association and the Restaurant Association of Singapore, to measure the economic impact of the RTS Link’s opening on consumption patterns, the tourism sector and the business community.
Retailers and Restaurants Most Affected
The report shows that daily necessities will be the largest contributor to Singaporean spending in Johor Bahru. Groceries are expected to be the biggest spending category, followed by pharmacies, restaurants and beauty services.
This situation is expected to add pressure on retail and restaurant businesses in Singapore, particularly those located in residential areas. They risk losing customers who opt to shop in Malaysia, where prices are cheaper.
SBF Chief Executive Officer Kok Ping Soon said businesses were already facing various pressures, ranging from labour shortages to high rental and operating costs.
“Groceries, pharmacies, restaurants and beauty services are expected to be the sectors that draw the most spending from Singaporeans in Johor Bahru. Many businesses are already under pressure from labour, rental and operational costs, so the arrival of the RTS Link will add structurally competitive pressure,” he said.
Price Competition Set to Intensify
Businesses surveyed believe the RTS Link will intensify competition, especially for products and services that are price-sensitive.
Singapore’s outlying regions are expected to suffer the largest loss of local spending. The western region is projected to see a net outflow of S$104 million, followed by the north-east at S$103 million, the north at S$82 million and the east at S$25 million.
Conversely, Singapore’s city centre is actually projected to gain around S$25 million in additional spending, driven by strong tourist interest in premium shopping centres, hotels, restaurants and entertainment in the downtown area.
Consequently, many businesses feel they can no longer compete on price alone. Improving service quality, customer experience and product differentiation are seen as key strategies to remain competitive with businesses in Johor Bahru.