As the Johor Bahru-Singapore Rapid Transit System (RTS) Link prepares for its January 2027 launch, Singapore’s retail and food and beverage (F&B) sectors are bracing for a significant shift in consumer behavior. A new study, jointly commissioned by the Singapore Business Federation, the Restaurant Association of Singapore, and the Singapore Retailers Association, projects that Singaporeans will increase their annual spending in Johor Bahru by S$1.05 billion. While the link is expected to draw more visitors to Singapore, contributing an estimated S$756 million in incremental annual spending, the country faces a net annual outflow of approximately S$290 million.
The study highlights that the RTS Link will fundamentally reshape cross-border travel, with a projected 51 per cent increase in outbound trips by Singapore residents. Groceries, pharmaceuticals, dining, and beauty services are expected to face the most intense competition, as consumers increasingly seek value across the border. This structural change arrives at a time when local businesses are already navigating persistent challenges, including high rental costs, operating expenses, and a tight labor market.
To address these pressures, industry groups are calling for collaborative efforts between the government and the private sector. The proposed strategies emphasize moving beyond price-based competition. Instead, businesses are encouraged to strengthen their value propositions by focusing on unique customer experiences, service quality, and distinct local offerings. The study suggests that while some regions, particularly those in the north, may feel a greater impact, the central region could benefit from an influx of visitors seeking premium retail and entertainment.
Looking ahead, the findings will be presented to the government to help inform policies that support business adaptation. As the January 2027 opening approaches, the focus remains on enhancing productivity and innovation to ensure that Singapore’s retail and F&B sectors can remain competitive in a more connected regional market.