The Singapore Business Federation (SBF), along with the Restaurant Association of Singapore (RAS) and Singapore Retailers Association (SRA), has unveiled a study examining the effects of the Johor Bahru-Singapore Rapid Transit System (RTS) Link on consumer spending and business competitiveness in Singapore’s retail and food and beverage (F&B) sectors. The study projects a net incremental outbound spend of S$290m annually, representing 0.4% of Singapore’s total retail and F&B sales in 2025.
The RTS Link is expected to significantly increase cross-border travel, adding 11.2 million Singapore-Johor Bahru round trips and 3.3 million Johor Bahru-Singapore round trips annually. This enhanced connectivity could lead to an additional S$756m in annual spending from Johor Bahru visitors to Singapore, whilst Singaporean consumer spending in Johor Bahru is anticipated to rise by S$1.05b annually.
The study highlights the competitive pressures the RTS Link will impose on Singapore’s retail and F&B sectors, which are already grappling with manpower, cost, and rental challenges. It forecasts a 51% increase in outbound trips by Singapore consumers, with groceries, chemists, dining, and beauty services being the primary areas of increased spending.
To address these challenges, the SBF, RAS, and SRA have identified three priority areas: stimulating local spend, boosting tourist spend, and supporting business adaptation. These measures aim to stabilise domestic consumer spending, encourage longer stays and higher spending by RTS-enabled visitors, and help businesses adapt to the new cross-border dynamics.
Kok Ping Soon, CEO of SBF, emphasised the need for businesses to adapt beyond price competition by enhancing offerings and experiences. Ernie Koh, President of SRA, and Benjamin Boh, President of RAS, echoed the sentiment, highlighting the importance of government support and operational flexibility to navigate the evolving landscape.
