SINGAPORE – When the Johor Bahru-Singapore RTS Link begins passenger service in January 2027, Singaporeans are projected to spend $1.05 billion across the Causeway – nearly 40 per cent more than the $756 million JB visitors are expected to spend in Singapore.
The projections come from a joint study released on July 16 by the Singapore Business Federation (SBF), the Restaurant Association of Singapore (RAS) and the Singapore Retailers Association (SRA), examining how the RTS Link could reshape consumer spending, tourism flows and business competitiveness in Singapore’s retail and food and beverage (F&B) sectors.
The study projects a 51 per cent annual increase in Singapore consumers crossing over to JB once the railway shuttle opens, with groceries, drug stores, dining and beauty currently topping the list of categories Singaporeans spend on.
Among JB respondents, 34 per cent said they intend to visit Singapore once the RTS Link opens, with annual visits by public transport users projected to rise by 57 per cent on average, the study found. Visitors who previously drove into Singapore said they would switch to the RTS Link, with a preference for overnight stays and spending on entertainment.
Currently, public transport options between both cities are the KTM Shuttle Tebrau train or cross-border buses and taxis. The RTS Link is intended to offer a faster, higher-frequency alternative to the KTM service.
Worries about competition, manpower and cost pressures
Businesses across Singapore’s retail, F&B and wider business ecosystem said they were concerned that the RTS Link would intensify competition from JB, particularly in price-sensitive segments such as groceries, pharmaceuticals and beauty services, where lower cross-border prices are already shaping consumer spending patterns.
Beyond pricing, businesses said they could differentiate through service quality, customer experience and distinct offerings – but pointed to persistent manpower, compliance and cost pressures as barriers to innovating and scaling.
Small and medium-sized enterprises (SMEs) were particularly concerned about adapting as quickly as larger operators, and called for more support to strengthen competitiveness and capture new opportunities from increased cross-border flows.
Still, the billion dollars Singaporeans are projected to spend in JB is a small portion of Singapore’s retail and F&B sector, which contributed about $16.6 billion to the economy in 2025.
Support for SMEs
The SBF, RAS and SRA said the industry and government could first focus on increasing local and tourist spend, and help retail and F&B businesses adapt and seize new opportunities by addressing structural cost pressures and supporting new operating and business models.
To help businesses better respond to changing consumer trends and increased cross-border connectivity, the study underscored the need for stronger collaboration among trade associations, landlords, tourism stakeholders and government agencies.
Mr Kok Ping Soon, SBF’s chief executive officer, said the RTS Link will create opportunities for Singapore businesses to attract more visitors, but noted that it also raises competitive pressure, particularly for the retail and F&B sectors.
“This shift is structural, not incremental. Businesses must adapt beyond price competition by strengthening their offerings, experiences and productivity, while industry and government must work together to help them compete in a more connected cross-border market,” he said.
SRA’s president Ernie Koh said they anticipate a “measurable shift in consumer behaviour” with the opening of the RTS. “While local retailers pivot heavily towards experiential concepts, and malls actively curate tenant remixes, we look forward to specific government mitigation measures such as increased manpower flexibility and support over the next three to five years.”
Mr Benjamin Boh, president of RAS, said: “Singapore’s F&B sector currently operates in a dynamic and cost-sensitive climate. With increased cross-border travel, we can expect new pressures to be introduced on an already highly competitive F&B industry at large, and opportunities for selective players based on where inbound visitors typically spend their money.
“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.”
