Mainstream media reports that over 300,000 people cross the Johor-Singapore Causeway daily. Commuters can choose from various options, including private hire vehicles like ComfortDelGro C52 (CDG) taxis or several bus services, such as Bus 170 from Kranji MRT Station, operated by SBS Transit. SBS Transit, a 75%-owned subsidiary of CDG, is also listed on the Singapore Exchange S68 (SGX).
The new Rapid Transit System (RTS) Link connecting Johor Bahru and Woodlands, which will be jointly operated by SMRT Corporation and Malaysia’s Prasarana, is expected to alleviate some of the passenger load handled by SBS and CDG.
According to the Land Transport Authority’s (LTA) website, the RTS Link will have the capacity for up to 10,000 commuters per hour and in each direction, translating to an added capacity of 60,000 users crossing the Causeway during peak hours.
The train will transport passengers between Singapore’s Woodlands North station and Johor’s RTS Link Bukit Chagar station. Woodlands North is connected to the Thomson-East Coast Line (TEL). The RTS Link is set to begin operations by the end of 2026 and is expected to replace the current KTM Intercity Shuttle Tebrau service between Woodlands Checkpoint and JB Sentral.
The opening of the RTS Link is also said to cut travel time to as low as 15 minutes, marking a vast improvement from the hours spent on the Causeway, especially during peak hour traffic.
RHB Bank Singapore head of equity research Shekhar Jaiswal says the RTS Link’s impact on public transport in Singapore will be generally positive. The impact on CDG and SBS should not be negative due to spillover traffic into their networks.
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While SMRT will be the current obvious beneficiary of the RTS Link as it will connect to the TEL in Singapore, he adds that there is still scope for significantly larger cross-border travel, especially when Singaporean businesses start building offices and factories in the Malaysian city.
“If you’re talking about 10,000 people who can swiftly move across the borders seamlessly without much waiting time and with travel time reduced, the traffic to the TEL [from the RTS Link] has to spill over to other MRT networks,” says Jaiswal, pointing out that once commuters reach Singapore, they can take the MRT to their destination instead of having to wait for a bus at Woodlands.
With the TEL running in a similar direction to the North-South Line, the latter may see lesser traffic, although SMRT manages both. However, the advantages to SBS and CDG come from traffic venturing further out into Punggol, Kaki Bukit, Ubi and Tampines.
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“The faster people move, the easier it comes for ridership to improve,” says Jaiswal.
Furthermore, the tenders for the two new MRT lines in Singapore, including the Cross Island Line, have not been awarded and can go to CDG or SMRT.
The Johor-Singapore Special Economic Zone (JS-SEZ) will benefit both countries. Singapore and Malaysia signed a memorandum of understanding (MOU) in Johor Bahru on Jan 11 to develop the SEZ. “When the MOUs are signed, and you know which sectors will be focused on, greater clarity should evolve,” says Jaiswal. However, the analyst does not expect Singapore-listed companies to enter the SEZ just yet, as infrastructure must be put in place first.
Maybank Securities analyst Eric Ong thinks the enhanced transport link, when fully operational at the end of 2026, could help boost CDG’s rail ridership. “[This comes] from better connectivity and increased traffic between Singapore and Johor Bahru.”
CGS International analyst Ong Khang Chuen also sees “minimal impact” on CDG from the RTS Link development.
“CDG’s subsidiary SBS Transit has two cross-border bus services (160 and 170) serving the Johor Bahru-Singapore border. Fare revenue risk is borne by the government while SBS Transit is paid a service fee to operate the bus services under Singapore’s bus contracting model,” he notes.
“[A] potential negative will stem from reduced bus frequency piling the routes; which we think is immaterial to group earnings even if it materialises,” he adds.
According to media articles, the construction was about 77.61% completed as of May 31.
