The opening of the Johor Bahru-Singapore Rapid Transit System (RTS) Link is set to have a significant impact on consumer spending and tourism flows between Singapore and Johor Bahru. The study, commissioned by the Singapore Business Federation (SBF), Restaurant Association of Singapore, and Singapore Retailers Association, projects a net increase in outbound spending by Singapore residents of S$1.05 billion annually, with a 51% increase in outbound trips. This is in contrast to the S$756 million net increase in spending by Johor Bahru visitors in Singapore, resulting in a S$290 million net increase in Singapore's outbound spend. The study highlights the potential for growth in various sectors, including groceries, drug stores, dining, and beauty services, but also underscores the challenges faced by businesses. The RTS Link is expected to intensify price competition, particularly in price-sensitive segments, and non-central areas of Singapore are projected to experience the largest net outflow in spending. The study emphasizes the need for businesses to differentiate themselves through service quality, unique customer experiences, and locally distinctive offerings. Small- and medium-sized enterprises (SMEs) are particularly concerned about adapting to the changing landscape and are calling for more support to strengthen their competitiveness. The study also identifies priority areas for industry and government action, including stimulating local spending, boosting tourist spend, and supporting business adaptation. The findings have been shared with relevant government agencies and the RTS Link task force, with the hope of implementing the recommendations to support local businesses and enhance the cross-border market.
