RTS Link could shift $290m more spending out of S’pore: study

SBF sees $1.05b in new spending by Singaporeans in Johor Bahru.

Local consumers could spend about $290m more in Johor Bahru than the Malaysian city’s visitors spend in Singapore each year after the Rapid Transit System (RTS) Link opens, according to a report.

A Singapore Business Federation-led study projects that the rail link will generate $1.05b in additional annual spending by Singapore consumers in Johor Bahru, compared with $756m from visitors travelling in the opposite direction.

The difference is equivalent to about 0.4% of the city-state’s total retail and food and beverage sales in 2025, it added.

Before the development, travellers made about 19.4 million round trips from Singapore to Johor Bahru each year and 5.9 million trips in the opposite direction using existing transport options.

The RT link is expected to add 11.2 million round trips and 3.3 million Johor Bahru-to-Singapore round trips annually, equivalent to about 39,700 trips a day.

Trips by local consumers to Johor Bahru are projected to rise by 51%. Groceries are expected to account for the largest share of their spending, followed by drugstores, dining and beauty services.

The report showed areas outside northern Singapore could feel a greater impact because consumers in the region already record higher levels of cross-border spending.

Meanwhile, the link could bring more visitors from Johor Bahru, particularly for premium shopping, entertainment and major events.

About 34% of respondents from the Malaysian city said they plan to visit Singapore for events after the rail link opens, up from 24% currently.

Annual visits by public transport users could rise by an average of 57%, whilst recreation spending is expected to double.

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