Koh said that this is inevitable given the push factors in Singapore, such as high costs of rental and labour, and the pull factors in Johor Bahru – including the upcoming Johor-Singapore Rapid Transit System (RTS) Link which is set to increase the city’s accessibility to shoppers from Singapore.
He added that this is especially so for the service-oriented retailers like hair salons, nail salons, dentists and optometrists.
“With the RTS Link coming in 2026, I always like to say ‘Empty hands go, empty hands come back’ meaning Singaporeans will increasingly travel across to JB for services relating to their hair, eyes, face, teeth, so they can travel over and take the train back without carrying too many things,” said Koh.
Joshua Koh, president of the Singapore Furniture Industries Council (SFIC), told CNA that Singapore retailers are losing business to competitors from China and Johor due to costs.
For instance, because of high rental costs, Singapore retailers have to actively manage their offerings to maximise the rental yield.
This is different in Johor where lower rentals mean retailers have much larger showrooms and a wider variety of products “at significantly lower prices”.
“We are concerned that the opening of the RTS will further add on to this trend of consumers going overseas for their furniture purchases as travel in and out of Johor will be much more convenient,” he added.
“Unless there are more cost effective measures to bring costs down, the only way to level the playing field is for Singapore retailers to set up shop in Johor.”
Bedding company Epitex told CNA that it plans to expand its market into Johor Bahru because it is targeting Singaporean visitors or Malaysians who work in Singapore but live in Johor Bahru.
Epitex’s retail and operations manager Tan Shea Hao told CNA that the chain has 24 outlets in Singapore and that the competition is “quite packed already” so it plans to open outlets in Johor Bahru.
Tan noted that its outlet in Woodlands, near Johor, is its best performing one. So the company is looking to open stores across the Causeway and price the goods at slightly levels lower than in Singapore.
“We have two outlets in Malaysia (in the Klang Valley) but we are spending more to open more shops in the different states, especially in Johor,” said Tan.
Meanwhile, QB House’s Matsumoto said that the main target customer base for its upcoming Johor stores are locals.
But he acknowledged that Singaporeans may also patronise these outlets given that the prices are slightly lower than in Singapore.
https://www.channelnewsasia.com/asia/singapore-retailers-johor-bahru-expand-sez-rts-rent-5164431
