S'pore visitors likely to spend S$1.05 billion more per year in JB when RTS Link opens, study finds

After the Johor Bahru-Singapore Rapid Transit System Link (RTS Link) opens, Singapore visitors are projected to spend S$1.05 billion more a year in Johor Bahru (JB).

That is about 39 per cent more than the S$756 million increase in spending expected from JB visitors in Singapore at the same time.

By these estimates, Singapore would have an S$290 million net increase in outbound spend each year — equivalent to 0.4 per cent of the country's total retail and food and beverage sales in 2025.

The study

These findings were published on Jul. 16 in a study jointly commissioned by the Singapore Business Federation (SBF), Restaurant Association of Singapore (RAS), and Singapore Retailers Association (SRA).

The study looks at the potential impact of the RTS Link on consumer spending, tourism flows, and business competitiveness in Singapore’s retail and food and beverage sectors.

The three parties surveyed 1,700 respondents in Singapore and 400 respondents in Johor in March, and drew on various other data such as historical credit card transactions and official government statistics.

More visitors expected

The RTS Link is scheduled to launch in January 2027.

Using current transport modes, there have been about 19.4 million round trips annually from Singapore to JB, and 5.9 million from JB to Singapore, according to the study.

It projects that the RTS Link will increase Singapore outbound trips by 51 per cent, adding 11.2 million round trips to JB each year.

The study added that groceries will account for the largest share of Singapore consumers' spending in JB, followed by dining and drug store and beauty items, as they "seek better value across the border".

In the other direction, RTS Link is also expected to bring an additional 3.3 million trips from JB to Singapore annually.

Many of these visitors would travel to Singapore especially for premium retail, entertainment, and major lifestyle events.

According to the study, 34 per cent of JB respondents intend to visit Singapore for events after the launch of the RTS Link, up from 24 per cent today.

Seize new opportunities

The RTS Link "creates opportunities for Singapore businesses to attract more visitors, but it also raises competitive pressure, especially for our retail and F&B sectors", the CEO of SBF Kok Ping Soon said.

The three organisations behind the study called for the government to help retail and food and beverage businesses adapt and seize the new opportunities, by addressing structural cost pressures and supporting new operating and business models.

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