The Johor Bahru-Singapore Rapid Transit System (RTS) Link is expected to significantly reshape cross-border consumer spending, boosting tourism and visitor spending in Singapore while intensifying competition for local retail and food and beverage (F&B) businesses, according to a new industry study.
The study, titled Impact of RTS on Singapore Retail and F&B Sector, was jointly commissioned by the Singapore Business Federation (SBF), Restaurant Association of Singapore (RAS) and Singapore Retailers Association (SRA).
It found that the RTS Link, which will provide a seamless rail connection between Johor Bahru (JB) and Singapore, is projected to generate an additional 11.2 million annual round trips by Singaporeans to JB and 3.3 million additional round trips by JB residents to Singapore. The increase translates into an estimated 39,700 daily passenger trips.
While improved connectivity is expected to stimulate spending on both sides of the Causeway, the study projects Singapore consumers will spend significantly more in Johor than JB visitors will spend in Singapore.
In 2025, outbound spending from Singapore to Johor is estimated at S$1.7 billion, offset by S$1.3 billion in inbound spending from Malaysian visitors. Following the RTS Link’s completion, annual spending by JB visitors in Singapore is expected to increase by S$756 million.
However, Singaporean spending in Johor is projected to rise by an even larger S$1.05 billion annually, resulting in a net incremental outbound spend of S$290 million each year. This represents approximately 0.4% of Singapore’s total retail and F&B sales in 2025.
The study expects competition to intensify, particularly in price-sensitive sectors such as groceries, pharmacies, beauty services and dining, where Singapore consumers are increasingly seeking better value across the border.
Groceries are forecast to account for the largest share of additional spending in Johor, followed by drug stores, dining and beauty-related purchases. Retail and F&B businesses outside Singapore’s northern region are expected to experience greater impact, as northern areas already record relatively high cross-border spending.
Despite the competitive challenges, the RTS Link is also expected to create new opportunities for Singapore businesses by attracting more Malaysian visitors.
The study found that 34% of JB respondents intend to visit Singapore for events after the RTS Link begins operations, compared with 24% currently. Annual visits by public transport users are expected to increase by 57%, with many current car users indicating they would switch to the RTS.
Visitors are also expected to spend more on premium retail, entertainment, events and overnight stays. Recreation spending is projected to double after the RTS Link opens, driven largely by demand for entertainment and lifestyle experiences.
Industry participants consulted during the study agreed that competing on price would not be sustainable. Instead, they identified service quality, unique customer experiences and differentiated local offerings as the key competitive advantages for Singapore businesses.
SRA President Ernie Koh said the integration of the RTS Link with Singapore’s MRT network is expected to accelerate changes in consumer behaviour, adding that retailers are already shifting towards more experiential concepts while malls continue to refresh tenant mixes.
