A study released on Thursday, July 16, 2026, projects that Singapore residents will spend an additional S$1.05 billion (US$810 million) annually in Johor Bahru once the Johor Bahru-Singapore Rapid Transit System (RTS) Link opens. This increase is expected to widen Singapore's net outbound spending gap.

In comparison, visitors from Johor Bahru are anticipated to spend S$756 million more in Singapore each year. The net effect is a S$290 million increase in Singapore's outbound spending, equivalent to 0.4% of the country's total retail and food and beverage sales in 2025.

The study also forecasts a 51% rise in outbound trips by Singapore consumers, adding 11.2 million Singapore-to-Johor Bahru round trips annually, while trips from Johor Bahru to Singapore are expected to grow by 3.3 million.

Commissioned by the Singapore Business Federation (SBF), Restaurant Association of Singapore, and Singapore Retailers Association, the study surveyed about 1,700 Singapore consumers and 400 Johor Bahru consumers in March 2026. It assessed how the RTS Link, scheduled to open in January 2027, could influence consumer spending, tourism flows, and business competitiveness in Singapore's retail and food and beverage sectors.

SBF CEO Kok Ping Soon noted that while the RTS Link will create opportunities for Singapore businesses to attract more visitors, it also raises competitive pressure, "especially for our retail and F&B sectors."

Businesses involved in the study highlighted that the RTS Link would intensify competition from Johor Bahru, particularly in price-sensitive areas such as groceries, pharmaceuticals, and beauty services, where lower cross-border prices are already influencing consumer behavior.

Additionally, the study found that 34% of respondents from Johor Bahru intend to visit Singapore for events after the RTS Link launches, up from 24% currently.

Sources