With Johor Bahru set to be just a 5-minute train ride away, Singapore merchants need to raise their game
The impact could ripple beyond shops and restaurants, but analysts say that it also offers Singapore businesses a chance to reinvent themselves through better service, stronger brands and new business models.
A new train link connecting Singapore and Johor Bahru, Malaysia is set to open in 2027, which could lead to significant changes for Singaporean merchants. Many businesses, particularly those in grocery, drug stores, F&B establishments, and beauty services, are concerned that the increased affordability of traveling to Johor Bahru will hurt their bottom lines.
Mrs. Ruth Lee, a financial adviser who currently drives to Johor Bahru weekly, expects to visit more frequently once the RTS Link opens, potentially spending more money in the Malaysian city-state. However, small businesses are worried that they may not be able to keep up with the increased competition from Malaysian businesses, as Singapore residents are projected to spend an extra S$1.05 billion a year in Johor Bahru.
The study also found that businesses dealing with groceries and food products are expected to be hit the hardest. Experts suggest that the opening of the RTS Link highlights the challenges that small and micro businesses in Singapore already face, such as rising overheads and limited profit margins. The Singapore government has proposed a series of policy recommendations to help businesses adapt, including measures to stimulate domestic spending and provide targeted support for businesses to cope with the new cross-border trade dynamics.
Written by urgent.news from Channel News Asia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
