PUBLISHED ONJuly 16, 2026 11:27 AMUPDATEDJuly 16, 2026 1:09 PMBYDana LeongThe upcoming Johor Bahru-Singapore Rapid Transit System (RTS) Link is expected to intensify cross-border competition, and local businesses will need to sharpen their value propositions instead of competing primarily on price.
A study commissioned by the Singapore Business Federation (SBF), Restaurant Association of Singapore (RAS) and Singapore Retailers Association (SRA) projects that Singaporeans will spend an additional $1.05 billion annually on retail and F&B purchases in Johor Bahru (JB) once the RTS Link opens.
At the same time, local businesses stand to gain an estimated $756 million annually from JB visitors, resulting in an additional net annual spending outflow of about $290 million — 0.4 per cent of Singapore's total retail and F&B sales in 2025.
Released on Thursday (July 16), the study was conducted in March 2026 and surveyed around 1,700 people in Singapore and 400 in Johor. It also drew on Mastercard historical transaction data, government statistics and a case study of the Hong Kong-Shenzhen high-speed rail network.
According to the study, groceries, pharmaceuticals and beauty services are expected to face the strongest cross-border competition, as consumers gain easier access to alternatives across the border when the RTS Link opens in January 2027.
SBF chief executive officer Kok Ping Soon said that the RTS Link will reshape how consumers travel, shop, and dine across Singapore and JB.
"This shift is structural, not incremental. Businesses must adapt beyond price competition by strengthening their offerings, experiences and productivity," he said, adding that the Government, trade associations and other stakeholders must also work together with the affected industries to help them compete in a more connected cross-border market.
In particular, the study outlined 10 recommendations aimed at managing increased outbound spending, boosting inbound visitor spending and helping businesses adapt to a post-RTS integrated market.
"I think the challenge for businesses now is how they can adapt to this change while facing some of the constraints that they already face today, in higher manpower costs, operating challenges as well as rental pressures," said Kok.
He added that competing on price alone is not viable.
Rather, businesses should focus on creating unique customer experiences that cannot be replicated across the border.
The study proposed that the Government could introduce time-bound consumption vouchers to support local spending in retail and F&B.
The vouchers could be modelled after the CDC voucher scheme and extended to include a broader range of merchants outside the Central Region, regardless of business category.
Additionally, the industry groups proposed that the vouchers could be used for merchants in sectors most exposed to outbound spend — drugstores and toiletries, groceries and food products, and restaurants and cafes.
The study also recommended boosting tourist spend by encouraging RTS-enabled visitors to stay longer, explore more and spend more across Singapore by strengthening the country's attractiveness as a destination for experiences, events, and higher-value consumption.
For example, Singapore could continue building a strong pipeline of high-quality, recurring events to attract visitors and drive spending.
Singapore could also consider a more distributed event model, given that most major events are concentrated in the Central region.
The Northern Gateway offers a significant opportunity to capture RTS-enabled visitor spending, according to the study, especially with Woodlands being developed into a cross-border economic hub connected to the RTS link and the Johor Bahru-Singapore Special Economic Zone.
Lastly, the industry groups suggested supporting business adaptation through investment in infrastructure and assets to help them stay competitive.
They suggested providing temporary property tax relief to businesses during significant upgrading periods and allowing the cross-deployment of foreign workers across related roles or commonly owned entities, so that businesses can better match manpower to operational demand.
"To capture both local and tourist spending, businesses must be empowered with manpower agility and operational flexibility to consistently deliver compelling dining experiences that give local consumers more reasons to spend in Singapore while attracting more visitors," said Benjamin Boh, president of RAS.
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