COMPETITION LIKELY TO EASE OVER TIME

While businesses in northern Singapore could face pressure when the RTS Link opens, Prof Sing said the impact is unlikely to be permanent.

Drawing parallels with Hong Kong and Shenzhen, which are linked by road and rail border crossings, he said the cost gap between Singapore and Johor Bahru could narrow over time.

"In the long term we’ll probably see a kind of equilibrium. This is what we also observe between Hong Kong and Shenzhen, where a lot more people go to Shenzhen to do their shopping."

But businesses in Singapore will first have to weather the initial impact of the RTS Link, he said.

"They have to be able to hold on to their business, at least in the medium term. In the short term, definitely there will be some impact, especially the leakage of consumers to the other side."