RTS Link expected to drive over S$1b in annual spending by Singaporeans in Johor Bahru

SINGAPORE: Singapore consumers are expected to spend significantly more in Johor Bahru than Malaysian visitors spend in Singapore each year after the Rapid Transit System (RTS) Link begins operations, according to a study led by the Singapore Business Federation.

The report estimates that the cross-border rail connection will generate an additional S$1.05 billion in annual spending by Singapore consumers in Johor Bahru. In comparison, visitors travelling from Johor Bahru to Singapore are projected to contribute about S$756 million in extra annual spending.

That leaves a gap of around S$290 million, which the study noted is equivalent to roughly 0.4 per cent of Singapore’s total retail and food and beverage sales recorded in 2025.

The findings highlight the significant increase in cross-border travel expected once the RTS Link is operational. Before the project, travellers made around 19.4 million round trips annually from Singapore to Johor Bahru using existing transport options, while about 5.9 million trips were made in the opposite direction.

The report projects that the new rail service will add another 11.2 million round trips from Singapore to Johor Bahru each year, alongside an additional 3.3 million trips from Johor Bahru to Singapore. Together, this works out to approximately 39,700 extra cross-border journeys every day.

The study also forecasts that trips by Singapore consumers to Johor Bahru will increase by 51 per cent. Grocery shopping is expected to account for the largest portion of spending across the border, followed by purchases at drugstores, dining and beauty services.

According to the report, areas beyond northern Singapore may experience a greater impact from the increased cross-border activity, as residents living outside the northern region already account for relatively higher levels of spending in Johor Bahru.

While the study suggests Singapore retailers could face increased competition from across the Causeway, it also points to opportunities created by a larger number of visitors from Johor Bahru travelling to Singapore.

The report said the RTS Link is expected to encourage more Malaysian visitors to cross the border for premium retail experiences, entertainment offerings and major events.

Survey findings included in the study showed that interest in travelling to Singapore for events is likely to rise after the rail service opens. Around 34 per cent of respondents from Johor Bahru said they intend to visit Singapore for events once the RTS Link is in operation, compared with 24 per cent at present.

The report also projects that annual visits by public transport users from Johor Bahru could increase by an average of 57 per cent. Recreation spending by these visitors is expected to double following the launch of the cross-border rail connection.