INDUSTRY players in Johor Baru are bullish about the economic opportunities the Johor Baru-Singapore Rapid Transit System (RTS) Link service is expected to bring.
Business groups expect the new rail link to boost cross- border connectivity, driving fresh investment, visitor traffic and commercial growth across Johor Baru.
Malaysia Budget Hotels Association (MyBHA) Johor chapter chairman Jarod Chia said the RTS Link would be a boon for local businesses, particularly those operating within the city centre.
“The RTS will make travel between Singapore and Johor Bahru far smoother, unlocking economic growth not just for the city, but across the entire state,” he said when contacted.
Chia said budget hotel operators viewed the RTS Link, which promises faster and more efficient travel across the Causeway, as a potential game changer for the tourism industry.
However, he acknowledged industry concerns that many visitors might opt for day trips rather than staying overnight, capping the benefits for local hotels.
“Few visitors may choose to stay more than a single night – at budget options or hotels in general – if they are coming purely for a quick trip,” he said.
To encourage longer visits, Chia said the association was in talks with Tourism Johor, retailers, and other key stakeholders on a joint marketing drive.
The campaign aims to entice Singaporeans and other international travellers using the RTS Link to stay in Johor Baru for more than a single night.
He added that anticipation surrounding the RTS Link had already fuelled strong investor interest in properties within and around the city centre, driving up real estate values.
“Even with the RTS still under construction, we are seeing many investors buying properties not only in the city area but also nearby locations.
“Property prices in Johor Baru have increased three to four times compared with their original market value,” he said.
Johor Indian Business Association (JIBA) president P. Sivakumar said the city was witnessing an increase in business activity as entrepreneurs prepared for the RTS Link’s completion.
“We are seeing more cafes, restaurants, hotels and retail shops either opening or relocating to Johor Baru city despite rising rental rates,” he said.
“This is good for the local economy and will also create employment opportunities for locals.”
Sivakumar added that the growing number of businesses would help breathe new life into the city.
He said improving traffic management should now become a priority to ensure the city could cope with the anticipated increase in visitors once the RTS Line is operational.
He added that the government should encourage the development of more public parking facilities and greater use of public transport to help reduce the number of vehicles entering the city centre.
The RTS Link is on track for completion by the end of 2026, with passenger services expected to begin in January 2027 after testing and safety certification are completed.
The cross-border rail system will connect Bukit Chagar in Johor Baru with Woodlands North in Singapore.
