SINGAPORE: In Parliament on July 7, Workers’ Party MP Kenneth Tiong (Aljunied) expressed concerns over the future of some of Singapore’s heartland establishments in light of the opening of the Johor Bahru-Singapore Rapid Transit System (RTS) Link, which is scheduled for early 2027.
He said in a Facebook post on July 7 that “When the RTS opens, what will happen to us?” is a question he has heard from the owners of these businesses.
“The provision shop, the TCM shop, the noodle stall, the barber, the tailor. They read the same reports we do,” he said in Parliament, describing the dread of business owners in light of the ease and speed of travel between Johor and Singapore because of the RTS and Johor’s cheaper prices.
Mr Tiong cited an estimate from DBS that says between S$1.5 to S$2.1 billion in retail spending would move from Singapore to Malaysia, especially for food and personal service shops, and while he acknowledges and supports the help extended by the government by way of upgrades and improvements as well as the disbursement of vouchers, he added, “But we should be honest: for a generation of retailers, they will not be nearly enough.”
Therefore, Mr Tiong proposed “a different deal” that would give Singaporeans an opportunity to become beneficiaries of deeper economic integration between Singapore and Malaysia.
He suggested that Singapore should invest in Johor’s transit-oriented projects around Bukit Chagar and the 32 planned e-ART stations by taking an equity stake in these malls and developments.
In exchange, the government of Singapore could negotiate reserved retail spaces within these developments specifically for affected Singapore small businesses.
The MP noted that this would not be the first example of bilateral co-ownership, citing the 2010 Singapore-Malaysia railway land agreement, which allowed EMASEK and Khazanah to jointly develop Marina One and DUO.
“Johor gains a committed investor in a network it is building anyway; our shopkeepers gain a stake in the very developments drawing their customers across,” the MP wrote in his post.
This would allow around 40,000 provision shops, restaurants and personal care operators to hold a claim, and they could either take up a place, sell it to another operator, or take a cash floor.
He noted in his speech that because of Malaysia’s restrictions on foreign participation, there would need to be negotiations between Singapore and Malaysia’s trade and industry ministries, though there is a precedent, such as foreign businesses in developments such as Forest City.
Mr Tiong’s speech can be read in full here. /TISG
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