THE first wave of beneficiaries from the Johor-Singapore was residential properties near RTS Bukit Chagar where early buyers positioned ahead of the system’s opening and already enjoyed a visible uplift 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 true economic impact of 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.
Even before the RTS commences, JB malls are already drawing strong Singaporean footfall. Notable beneficiaries include:
i) KSL Mall: The mall is already commanding monthly rental rates that are on par with prime KL malls like Mid Valley / The Gardens.
ii) Mid Valley Southkey Mall: The mall is located slightly further inland vs. KSL Mall.
iii) Paradigm JB Mall: The mall is seeing strong rental reversion rate at low-teens with near full occupancy.
On the horizon, two upcoming malls in JB by Sunway will further enhance Johor’s retail landscape, one integrated with the RTS TOD and another within Sunway Majestic integrated development.
The hotel sector is also gearing up for the anticipated surge incross border tourism. Notably, YTL’s acquisition of Thistle Hotel in JB for RM150 mil, with relaunch targeted in 2026.
On the horizon, Sunway plans to develop a new five-star hotel at its RTS TOD site. These moves signal the start of a broader wave of asset refurbishments and new hotel developments, as operators position to capture higher tourist flows once the RTS shortens commute times to just minutes.
Beyond malls and hotels, retail chains and F&B brands with deep Johor exposure stand out as prime beneficiaries:
i) SDS Group – A Johor-born bakery & 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 uplift from tourist spillover and stronger local spending once the RTS drives higher cross-border economic activity.
ii) Oriental Kopi – With 9 outlets in Johor out of 31 nationwide, the brand has established a strong southern presence. Its positioning as a modern kopitiam chain offers a unique value proposition, appealing to Singaporeans seeking familiar yet differentiated F&B experiences at more attractive price points than back home.
iii) Focus Point – A nationwide optical retailer, with 33 outlets in Johor out of 196 nationwide, stands out for its scale and brand recognition, making it the go-to eye-care retailer for cross-border shoppers. The significant price differential in optical products between Singapore and Malaysia further strengthens its appeal.
With the RTS set to transform cross-border flows, Johor’s retail, F&B, and hospitality sectors are poised to become the next growth engines beyond residential property.
Established malls and hotels stand to benefit from stronger footfall and potential rental re-rating, while Johor-centric consumer names such as SDS, Oriental Kopi, and Focus Point offer direct leverage to rising cross-border spending power. —Sept 17, 2025
Main image: lelongtips.com
