SINGAPORE: A new survey by BlackBox Research found that Singaporeans aged 35 to 44 are the most likely to shift more of their monthly spending to Johor Bahru as the Rapid Transit System (RTS) Link nears its launch.
Nearly half (43%) of respondents in this age group said they expect to shift more than S$250 in monthly spending to JB once the new rail link begins operations—the highest share among all age groups.
Those aged 45 to 54 came next at 37%, followed by 18 to 34 (29%), 55 to 64 (24%) and 65 and above (23%).
According to Singapore Business Review, the survey also found that the likelihood of shifting more spending across the border increased with income.
While 23% of respondents earning below S$4,000 expected to shift more than S$250 a month, the share rose to 39% among those earning S$4,000 to S$6,999 and 51% among those earning S$7,000 and above.
This means mid-career professionals and high earners “pose the biggest commercial threat” as they take more of their spending across the border, BlackBox said.
The intention to shift spending to JB also increased with income among employed respondents. About 70% of those earning below S$4,000 said they planned to do so, compared with 88% of those earning S$4,000 to S$6,999 and 87% of those earning S$7,000 and above.
Businesses in Singapore have been bracing for impact as more consumer spending could flow to Johor through the new rail link’s more convenient five-minute journey.
In fact, a study by the Singapore Business Federation, Restaurant Association of Singapore and Singapore Retailers Association estimated that Singapore residents could direct an additional S$1.05 billion in annual spending to JB.
While Johor visitors are also expected to spend more in the city-state, at around S$756 million a year, this would still be about S$290 million less than the amount Singapore residents are expected to spend in JB. /TISG
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