Expected Impact of RTS Link's Opening on Businesses in Singapore's Northern Region
Ministry of Trade and IndustrySpeakers
Summary
This question concerns the expected impact of the Rapid Transit System (RTS) Link on Singapore businesses, particularly in the northern region, and the support measures queried by Ms Mariam Jaafar and Dr Choo Pei Ling. Deputy Prime Minister Gan Kim Yong replied that while the RTS Link offers net benefits, consumer-facing sectors like food services and retail in the North face increased competition from cross-border travel. He highlighted counterbalancing opportunities, including reduced Causeway congestion lowering transport and import costs, alongside more Malaysian visitors patronising heartland businesses. To help enterprises adapt and innovate, the Government provides the Enterprise Development Grant, Productivity Solutions Grant, Enhanced Visual Merchandising Programme, and the Retail Maverick Challenge. Deputy Prime Minister Gan Kim Yong added that the RTS Link Taskforce, established in March 2025, will share its findings and recommendations later this year.
Transcript
140 Ms Mariam Jaafar asked the Deputy Prime Minister and Minister for Trade and Industry (Trade) (a) what data or analysis the Government has on the expected impact of the RTS Link's opening on businesses in Singapore's northern region, given the joint Singapore Business Federation, Restaurant Association of Singapore and Singapore Retailers Association study's finding that these businesses will be less affected due to existing familiarity with cross-border competition; and (b) whether transition support measures for affected businesses, particularly SMEs in the north, are sufficient.
141 Dr Choo Pei Ling asked the Deputy Prime Minister and Minister for Trade and Industry (Trade) (a) whether the Government has assessed how the Johor Bahru-Singapore Rapid Transit System Link is expected to reshape cross-border consumer spending and business activity; (b) which sectors in Singapore are expected to experience the greatest opportunities and competitive pressures, if any; and (c) how the Government is supporting Singapore businesses to strengthen their competitiveness and tap into new opportunities.
Mr Gan Kim Yong: The Rapid Transit System (RTS) Link is an important bilateral project that will strengthen connectivity between Singapore and Johor Bahru. It will deepen economic and people-to-people ties, and create win-win opportunities for both sides of the Causeway. The RTS Link will bring net benefits to Singapore and Singaporeans.
The Government recognises that our local businesses are operating in an increasingly competitive environment, shaped by the growth of e-commerce, evolving consumer preferences and rising operating costs. The RTS Link Taskforce, which was set up in March 2025, has engaged a wide range of stakeholders to study the impact of the RTS Link.
Through our engagements, we have heard concerns from businesses in consumer-facing sectors, such as food services and retail. These concerns are particularly pronounced in the North, as residents living in that area may travel more frequently to Johor Bahru after the RTS Link opens.
While businesses have expressed concerns, they also recognise the opportunities the RTS Link offers. For example, with less congestion at the Causeway, transport and import costs may fall. In addition, enhanced connectivity will also attract more visitors from Malaysia to Singapore for recreation, entertainment, dining, shopping and other activities, adding to the vibrancy of our heartlands.
To support our SMEs and heartland enterprises, the Government has in place a range of schemes, such as the Enterprise Development Grant and Productivity Solutions Grant, to help businesses adapt. We also have targeted support, such as the Enhanced Visual Merchandising Programme, for our heartland enterprises and initiatives, such as the Retail Maverick Challenge launched by Enterprise Singapore and CapitaLand Investment, to support local retailers in piloting innovative and experiential retail concepts.
The RTS Link Taskforce will share its findings and recommendations in further detail later this year.