The completion of the Rapid Transit System (RTS) Link between Johor Bahru and Singapore will be a game-changer for the retail landscape, bringing both significant benefits and considerable challenges, especially for small businesses. The RTS will increase foot traffic and cross-border spending, but it also intensifies competition and could lead to rising business costs.


Benefits for the Retail Business The primary benefit for Johor Bahru's retail sector is a massive increase in foot traffic from Singaporean shoppers.
With the RTS Link making the journey between Woodlands and Bukit Chagar seamless and fast, Singaporeans who were previously deterred by Causeway congestion will be able to make quick, frequent trips. This surge of cross-border shoppers will boost demand for a wide range of goods and services, including:

Food and Beverage (F&B): Singaporeans are attracted by Johor Bahru's diverse and affordable F&B options, and the RTS will make it even easier to visit for a meal or a cafe hop.

Retail and Wellness Services: Businesses offering services like haircuts, massages, and dental check-ups, as well as those selling groceries and general merchandise, will see a significant increase in customers due to the favorable exchange rate.

Property and Commercial Real Estate: The increased traffic and business activity around the RTS station will likely lead to higher occupancy rates and rental yields for commercial properties, benefiting mall owners and landlords. Challenges for Small Enterprises While the RTS brings opportunities, it also presents serious challenges for small enterprises in Johor Bahru:

Rising Costs:The increased demand for retail space, particularly in prime locations near the RTS station, will likely cause rentals to soar. Small businesses that can't afford these higher rents may be pushed out of prime locations, forcing them to relocate to less strategic areas.

Intense Competition: The influx of foreign shoppers will attract larger, international brands and developers to Johor Bahru. These large companies have the financial muscle to secure prime retail spots and offer a more varied shopping experience, making it difficult for smaller, independent businesses to compete on the same playing field.

Traffic and Infrastructure Strain: While the RTS will ease Causeway congestion, the influx of people within Johor Bahru itself could strain local infrastructure.

This includes feeder buses, local roads, and parking facilities. Without an efficient local public transport network to disperse commuters from the RTS station, the area could become a bottleneck, making it difficult for customers to access businesses further away.


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