Which Singapore regions face the largest outbound spending decline due to RTS Link?

Question

Accepted Answer

West and North-East Singapore Regions Face Largest Outbound Spending Declines Due to RTS Link

Singapore residents are projected to increase their spending in Johor Bahru by S$1.05 billion annually once the Rapid Transit System (RTS) Link becomes operational in 2027. This increased outbound spending is expected to lead to a net decline in spending within Singapore, with the west and north-east regions anticipating the most significant reductions. The study, commissioned by the Singapore Business Federation, Restaurant Association of Singapore, and Singapore Retailers Association, surveyed approximately 1,700 Singapore consumers and 400 Johor Bahru consumers to assess the RTS Link's potential impact.
West Region Faces S$104 Million Net Outbound Spending Decline

The western part of Singapore is forecast to experience the largest net outbound spending decrease, estimated at S$104 million annually. This outflow is attributed to the enhanced accessibility and convenience offered by the RTS Link, which will facilitate easier travel for Singapore residents to Johor Bahru for shopping and leisure activities. Groceries, drug stores, dining, and beauty services are anticipated to be key categories for this cross-border spending.
North-East Region Projected for S$103 Million Spending Reduction

Following closely, the north-east region of Singapore is projected to see a net outbound spending decline of S$103 million per year. This significant outflow underscores the widespread impact of the RTS Link across different geographical areas of Singapore, as improved connectivity makes Johor Bahru a more attractive destination for everyday purchases and services. The study's findings are based on a combination of consumer surveys, historical credit card data, and government statistics.
North Region Expected to Lose S$82 Million in Spending

The northern region of Singapore is also expected to witness a substantial reduction in domestic spending, with an estimated S$82 million flowing out annually due to the RTS Link. This trend highlights a broader pattern where enhanced cross-border transport links can shift consumer preferences and spending habits, particularly for price-sensitive goods and services. Businesses in Singapore, especially small and medium-sized enterprises, are facing intensified competition from Johor Bahru.
East Region Anticipates S$25 Million Outbound Spending Decrease

The eastern region of Singapore rounds out the areas projected to experience net outbound spending declines, with an estimated S$25 million less spent domestically each year. While smaller in magnitude compared to the west and north-east, this figure still contributes to the overall picture of increased Singaporean spending in Johor Bahru. The RTS Link is scheduled to commence operations in January 2027, connecting Bukit Chagar in Johor Bahru and Woodlands North in Singapore.

Reading history

Hide →

This history is cleared when the page is closed.

Which Singapore regions face the largest outbound spending decline due to RTS Link?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends