Written reply to PQs on impact of RTS Link on various sectors and support measures for affected SMEs

Questions: 

Ms Poh Li San: To ask the Deputy Prime Minister and Minister for Trade and Industry (Trade) (a) what measures will be taken to support retail and food and beverage (F&B) SMEs affected by the Rapid Transit System (RTS) Link; and (b) whether HDB will reduce the rental fees for heartland malls located in the northern region. 

Mr Saktiandi Supaat: To ask the Deputy Prime Minister and Minister for Trade and Industry (Trade) (a) whether the Ministry has studied the likely impact of the Johor Bahru–Singapore Rapid Transit System Link on Singapore's retail, food and beverage, healthcare and personal-services sectors; (b) what are the projected effects on consumer spending, business costs, employment and visitor flows in Singapore; and (c) how will the Government assess the overall economic benefits and adjustment costs arising from the Link. 

Written Answer by Deputy Prime Minister and Minister for Trade and Industry (Trade) Mr Gan Kim Yong 

1.           The Rapid Transit System (RTS) Link is an important bilateral project that will strengthen connectivity between Singapore and Johor Bahru. It will deepen economic and people-to-people ties, and create win-win opportunities for both sides of the Causeway. The RTS Link will bring net benefits to Singapore and Singaporeans. 

2.           The Government recognises that our local businesses are operating in an increasingly competitive environment, shaped by the growth of e-commerce, evolving consumer preferences, and rising operating costs. The RTS Link Taskforce, which was set up in March 2025, has engaged a wide range of stakeholders to study the impact of the RTS Link. 

3.           Through our engagements, we have heard concerns from businesses in consumer-facing sectors such as food services and retail. While businesses have expressed concerns, they also recognise the opportunities the RTS Link offers. For example, with less congestion at the Causeway, transport and import costs may fall. Enhanced connectivity will also attract more visitors from Malaysia to Singapore for recreation, entertainment, dining, shopping and other activities, adding to the vibrancy of our heartlands. 

4.           To support our SMEs and heartland enterprises, the Government has in place a range of schemes such as the Enterprise Development Grant and Productivity Solutions Grant to help businesses adapt. We also have targeted support such as the Enhanced Visual Merchandising Programme for our heartland enterprises, and initiatives such as the Retail Maverick Challenge launched by Enterprise Singapore and CapitaLand Investment, to support local retailers in piloting innovative and experiential retail concepts. 

5.           For the Housing and Development Board (HDB) rental shop tenants facing business challenges and financial constraints, HDB will assist them on a case-by-case basis. This includes offering shorter tenancy periods or facilitating business transitions to other locations. Tenants who face difficulties may approach HDB for assistance.

6.           The RTS Link Taskforce will share its findings and recommendations in further detail later this year.