SINGAPORE, July 16 (Xinhua) -- Singapore consumers are expected to spend an additional 1.05 billion Singapore dollars (810 million U.S. dollars) annually in Johor Bahru, Malaysia's southernmost city bordering Singapore, once the Rapid Transit System (RTS) Link between the two cities opens, according to a study released on Thursday.
Visitors from Johor Bahru are also expected to spend an additional 756 million Singapore dollars annually in Singapore, the study by the Singapore Business Federation, the Restaurant Association of Singapore and the Singapore Retailers Association found.
Singapore and Johor Bahru already have close economic and social links, with traffic congestion frequently building up at the land crossings connecting the two sides during peak periods and holidays. Currently, about 19.4 million annual round trips were made from Singapore to Johor Bahru, and 5.9 million in the opposite direction, using existing transport modes.
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 trips.
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, cost and rental pressures.
"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," said Kok Ping Soon, chief executive officer of the Singapore Business Federation. ■