Can central Singapore benefit from increased Johor Bahru visitor spending?

Question

Accepted Answer

Central Singapore Could See a Spending Boost from Johor Bahru Visitors

Central areas of Singapore are projected to experience a financial uplift from increased spending by visitors from Johor Bahru, following the opening of the Johor Bahru-Singapore Rapid Transit System (RTS) Link. This boost is estimated to contribute S$25 million, primarily through spending in premium retail, entertainment, hotels, and dining establishments within these central districts. The RTS Link, connecting Bukit Chagar in Johor Bahru and Woodlands North in Singapore, is slated for operation in January 2027.
Projected Increase in Cross-Border Travel

The RTS Link is anticipated to significantly alter travel patterns between Singapore and Johor Bahru. A study commissioned by the Singapore Business Federation, Restaurant Association of Singapore, and Singapore Retailers Association forecasts a 51 per cent rise in trips by Singaporean consumers to Johor Bahru, amounting to an additional 11.2 million return journeys annually. Concurrently, trips from Johor Bahru to Singapore are expected to increase by 3.3 million return journeys per year.
Shift in Consumer Spending Habits

Singapore residents are expected to increase their annual spending in Johor Bahru by S$1.05 billion once the RTS Link becomes operational. This outbound spending surge from Singapore is projected to surpass the estimated S$756 million that visitors from Johor Bahru are forecast to spend in Singapore each year. Consequently, Singapore could see a net increase in outbound spending of approximately S$290 million annually, which represents about 0.4 per cent of the country's projected total retail and food and beverage sales for 2025.
Spending Categories and Regional Impact

Groceries are anticipated to constitute the largest portion of Singapore's increased outbound spending in Johor Bahru, followed by expenditures at drug stores, dining establishments, and beauty service providers. While central areas may see a net gain, non-central regions of Singapore are expected to experience the most significant spending outflows. The west region is projected to face a net decline of S$104 million, followed by the north-east (S$103 million), the north (S$82 million), and the east (S$25 million).

Reading history

Hide →

This history is cleared when the page is closed.

Can central Singapore benefit from increased Johor Bahru visitor spending?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends