The Johor Bahru-Singapore Rapid Transit System (RTS) link under construction near Johor Bahru Sentral Station in Johor Bahru, Malaysia, Tuesday, September 24, 2024.
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Robert Kuok began studying in Singapore when he was seven years old, commuting every day to his home in Johor Bahru, the capital of southern Malaysia.
She then attended the National University of Singapore and worked in the city-state for more than 30 years before finishing her studies.
She is now back in her hometown, living in a two-storey semi-detached house with her Singaporean husband and their three dogs. Although they eat out most of the time and their shopping list includes lots of imported foods such as milk and cheese, their monthly expenses are about 30% to 40% lower than in Singapore.
“We thought Malaysia would be a cheaper place to retire. We chose Johor Bahru (Johor Bahru) because that’s where I’m from and it’s close to Singapore,” she said.
Robert Kuok is one of the little people An increasing number of Singapore residents They moved to Johor, where the cost of living was much lower. Some, like Intan Syuhada, senior director of Asia Pacific at Messe Berlin, are based in Johor but travel to Singapore for work every day via one of the two bridges connecting the two sides.
Mercer is a human resources consulting company. Earlier this year, Singapore was named the second most expensive city Among the world’s best cities for international workers, Johor Bahru ranks 214th out of 226 cities on the list. Items that are expensive in Singapore include cars, petrol, and utilities such as water and electricity.
Many Singaporeans have begun traveling to Malaysia regularly to shop and enjoy services such as car repairs, massages and haircuts.
The number of Singaporeans visiting or relocating to Johor is likely to increase in the coming years when the rail link between Singapore and Johor Bahru is completed and the planned Johor-Singapore Special Economic Zone (JS-SEZ) comes into effect.
Passport-free travel
First proposed in January 2024, JS-SEZ would allow passport-free travel and digital cargo clearance between Singapore and parts of Johor state, including Johor Bahru, significantly shortening the time for cross-border movement of people and goods.
Singapore will benefit from smoother access to Johor’s plentiful land and cheaper labor, while Johor and Malaysia will receive new investment, potentially bringing high-paying jobs. According to Johor state officialsThe JS-SEZ could create up to 100,000 new jobs in the state and boost the Malaysian economy by approximately US$26 billion annually over the next six years.
On March 17, 2020, Singapore, the day before Malaysia closed the border, vehicles continued to drive into Singapore on the causeway bordering the southern Malaysian state of Johor Bahru and Singapore.
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Malaysia had hoped to finalize the deal by September, but Singapore media quoted sources as sayingsaid the deal was stalled due to several sticking points, such as contributions to a facilitation fund for companies seeking to expand operations into Johor and rules on the movement of skilled workers.
The two countries now hope to reach an agreement when their leaders meet in December.
rapid transit system
The upcoming Rapid Transit System (RTS) connecting northern Singapore to Johor Bahru will facilitate transportation between Singapore and Johor. The system is expected to be completed by the end of 2026 and will be able to carry up to 10,000 passengers per hour, reducing travel time in both directions from more than an hour to just a few minutes.
Hasan Jafri said: “The RTS will have a huge impact as the Johor-Singapore border is one of the most visited in the world. If JS-SEZ wants to succeed, it has only two landmasses. Linking doesn’t work.
Currently, more than 300,000 Malaysians travel to and from Singapore every day Wages there are often three times higher, and you have to overcome traffic jams and cumbersome customs and immigration checkpoints that can sometimes take hours to get through.
Due to this bottleneck, few Singaporean companies utilize Johor for time-sensitive activities as supply chains may be disrupted.
historical baggage
Singapore and Johor have tried to better integrate their economies in the past, but cooperation was hampered by animosity between the former leaders of Singapore and Malaysia. At the time, Malaysia saw itself as a rival to Singapore, hoping to build its own ports and high-tech industries, while the city-state was only prepared to shift lower value-added activities to its northern neighbor.
“The situation is different now. Economically, Singapore has widened the gap with Malaysia, while Malaysia remains trapped in the middle-income trap with competition from Vietnam and India. In order to move up the value chain, Malaysia needs to cooperate with Singapore,” Jafri said explain.
Nonetheless, the smooth operation of the JS-SEZ may be hampered by domestic pressure if intensified movement of people leads to a sharp drop in retail sales in Singapore and rising inflation in Johor. Singaporean businesses considering relocating to Johor must also consider the risks posed by Malaysia’s inefficient bureaucracy.
Seen from Singapore at the border crossing into the southern Malaysian city of Johor Bahru.
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According to RTS data, retail sales in Singapore may fall by 3% to 4% once the RTS is completed. a studyas residents do more shopping and entertainment in Johor. Meanwhile, Johor residents such as Robert Kuok and Andan worry that the surge in tourists and immigrants from Singapore will trigger inflation and change living conditions.
“I would feel uncomfortable if Johor Bahru became like Singapore, because it means the cost of living continues to rise,” Kuok said.
“I firmly believe that JB must maintain its own identity, and chaos and inefficiency are part of its charm.”
