Hanoi (VNA) – The Rapid Transit System (RTS) Link connecting Singapore and Malaysia's Johor Bahru is expected to significantly boost consumer spending and cross-border trade between the two countries once it becomes operational.
A study conducted jointly by the Singapore Business Federation (SBF), the Restaurant Association of Singapore, and the Singapore Retailers Association, and released on July 15, showed that Singaporean consumers are expected to spend an additional 1.05 billion SGD (about 810 million USD) annually in Johor Bahru, Malaysia's southernmost city bordering Singapore, Xinhua News Agency reported.
Visitors to Johor Bahru are also projected to increase their spending in Singapore by 756 million SGD (about 583 million USD) annually.
Currently, about 19.4 million annual round trips are made from Singapore to Johor Bahru, and 5.9 million in the opposite direction, using existing modes of transport, according to the study.
Once operational, the rail link is expected to generate an additional 11.2 million annual round trips from Singapore to Johor Bahru and 3.3 million from Johor Bahru to Singapore, equivalent to an estimated daily ridership of 39,700 passengers.
The study also noted that the RTS Link could intensify competition for Singapore's retail and food-and-beverage sectors, which are already facing manpower shortages, rising costs and higher rents.
SBF CEO Kok Ping Soon said the shift is structural rather than incremental. He added that businesses must adapt by going beyond price competition, strengthening their product offerings, customer experience and productivity, while the government and industry should work together to help them compete in a more connected cross-border market.
Singapore and Johor Bahru have close socio-economic ties, but congestion frequently occurs at the land crossings linking the two sides, especially during peak hours and public holidays./.
