HLIB Research said the true economic impact will materialise once the RTS becomes operational and daily cross-border traffic ramps up.
PETALING JAYA: The Johor Baru-Singapore Rapid Transit System (RTS) Link is set to transform cross-border flows, with Johor’s retail, food and beverage (F&B) and hospitality sectors poised to become the next growth engines beyond residential property.
Hong Leong Investment Bank Research (HLIB Research) said established malls and hotels stand to benefit from stronger footfall and potential rental re-rating, while Johor-centric consumer names such as Oriental Kopi Holdings Bhd
and Focus Point Holdings Bhd offer direct leverage to rising cross-border spending power.
“The Johor–Singapore RTS has already boosted residential values near Bukit Chagar, but the next growth wave will come from retail, F&B and hospitality once daily cross-border traffic becomes a reality,” HLIB Research told clients in a report on the property sector.
It noted that the first wave of beneficiaries were residential properties near RTS Bukit Chagar where early buyers ahead of the system’s opening had already enjoyed a visible rise in property values.
In contrast, for retail, F&B and hospitality, such early positioning is not possible as consumers cannot “buy ahead” of the RTS, the research house said.
The true economic impact for these sectors will materialise only once the RTS becomes operational and daily cross-border traffic ramps up, setting the stage for retail and hospitality to emerge as the next play in the Johor growth story, it added.
Beyond malls and hotels, retail chains and F&B brands with deep Johor exposure stand out as prime beneficiaries, it said.
Among these is SDS Group, a Johor-born bakery and café chain, with 28 of its 38 outlets located in Johor, making it arguably a pure Johor consumption proxy.
With a presence across both malls and townships, SDS is well positioned to capture the dual benefits of tourist spillover and stronger local spending once the RTS drives higher cross-border economic activity, said HLIB Research.
It also said Oriental Kopi with nine outlets in Johor out of 31 nationwide, has established a strong southern presence.
Focus Point, a nationwide optical retailer, with 33 outlets in Johor out of 196 nationwide also stands out for its scale and brand recognition.
