*Platinum Member*
Centennial Member
Posts: 104723
Liked By: 62413
Joined: 30 Jun 10
Followers:
3
Tipsters
Championship:
Player
has
not started
|
(Singapore 16th) DBS Group released a latest research report. Once the Malaysia-Singapore MRT is opened, it may have an impact on Singapore’s retail industry, especially the catering and service industries. It is estimated that Singaporean merchants may lose S$1.5 billion (about 52 billion U.S. dollars) per year in the medium term. 18.695 billion) to S$2.1 billion (approximately RM7.36173 billion), which is equivalent to 3% to 4% of Singapore’s retail consumption.
The report pointed out that when the Malaysia-Singapore Rapid Transit System is expected to open to traffic at the end of 2026, it will shorten the commuting time between Singapore and Johor Bahru from more than an hour currently to 15 to 30 minutes, which will become a "game-changer". At the same time, the capacity of Singapore's Woodlands Checkpoint will be increased by 35%, which means that Singapore's outbound travel demand is expected to further increase.
The report revealed that the consumption of catering and services in Johor Bahru is as much as 50% lower than that in Singapore. It is expected that Singapore may lose S$1.5 billion to S$2.1 billion in the medium term, which is equivalent to 3% to 4% of Singapore's retail consumption last year.
Analysts are based on data from Tourism Malaysia, assuming that an average person spends between S$100 (approximately RM347, 91 cents) and S$141 (approximately RM490, 56 women) per day in Malaysia, and that after the Malaysia-Singapore MRT is opened at the end of 2026, the number of people spending from Singapore The number of visitors to Johor Bahru is expected to increase by 40,000 per day, which leads to the above mentioned potential loss of retail sales in Singapore.
Data from Tourism Malaysia shows that Singaporeans and Bruneians are the biggest shoppers in Malaysia. From 2018 to 2019, Singaporeans accounted for 43% of their overall consumption in Malaysia; Bruneians accounted for 51% of their total consumption.
The report points out that Singapore's catering and service industries will face a greater "substitution effect", which is the impact of changes in commodity prices on the demand for another commodity. This is because the Singapore dollar’s strong exchange rate against the ringgit makes it more cost-effective for Singaporeans to spend in Malaysia.
The exchange rate of the Singapore dollar against the ringgit has been rising steadily, rising by more than 17% since January 2019. The exchange rate that year was 1 Singapore dollar to 3.03 ringgit, and now it has risen to 1 Singapore dollar to 3.47 ringgit.
The report mentioned that Singapore's supermarket trade should be more resilient because it is inconvenient to carry heavy items across the embankment, and the money saved in this regard is not high.
According to analysts' on-site inspection of the retail situation in Johor Bahru, among the many retail trade industries, the consumer prices of beauty, hairdressing, massage and other services between Singapore and Johor Bahru are quite different, ranging from 30% to 50%. Service and entertainment prices also vary by 50%. Therefore, among the many retail trade industries, the catering and service industries are expected to face a larger "substitution effect."
(Google Translate)
https://www.orientaldaily.com.my/news/spr/2024/07/16/665973?utm_source=mobile-share
|
Main Menu >
Gossip Corner >
M’sian developer to build S$10 billion ‘mega-townships’ JB
1
) 
Find all Topics Started by LONGSTER
Find all Posts by LONGSTER
Follow / Unfollow
PM LONGSTER
23-Jul 2024 Tuesday
10:25 AM (47 days ago)
1 Likes
Like
