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Data from Singapore's United Overseas Bank (UOB) shows that Johor logged the fastest retail spending growth among Malaysian states between 2022 and 2024, averaging a 60 per cent increase annually. It also accounted for nearly half of all retail spending in Malaysia during the first half of 2025.

Transactions on Singapore-issued credit cards in Johor more than tripled over the same time period, the bank said, with denizens of the city state making more frequent or longer trips across the border - even though most purchases were for smaller items.

In light of this, UOB recently launched a new redemption scheme, enabling its Singapore-based customers to offset purchases at more than 150 Johor merchants using rewards points earned at home.

Oversea-Chinese Banking Corporation, meanwhile, saw a more than 20 per cent year-on-year rise in spending by Singaporeans in Malaysia in September, according to Regina Lim, head of the bank's group lifestyle financing and ecosystems.

"What we've observed so far suggests that Singaporeans are making everyday purchases rather than shifting their spending wholesale," she said.

"With careful planning and ongoing dialogue, the RTS has the potential to foster balanced growth that benefits communities, consumers and businesses on both sides of the border."

Retail spending in ringgit by customers of Singapore's largest bank, DBS, soared by more than 30 per cent in the first eight months of 2025, compared to the same period last year, said Chan Sow Han, its head of consumer banking payments and platforms. This growth spanned both credit and debit card transactions, as well as transfers via Malaysia's DuitNow payment platform.

Chan attributed the trend to three factors: a strong Singapore dollar, attractive incentives, and easier border crossings enabled by QR code clearance at immigration.

 

Банкоматы UOB и DBS в аэропорту Чанги в Сингапуре. Оба банка сообщили о росте розничных транзакций по своим кредитным картам, выпущенным в Сингапуре в Джохоре. Фото: Reuters

Ashley Thomas, head of strategy and operations at Revolut Singapore, said total spending by the digital bank's customers in Malaysia had grown over 25-fold since 2022 and the third quarter of this year, with transaction volumes increasing more than 40 times.

Meanwhile, YouTrip's Chief Operting Officer Kelvin Lam attributed the three-fold rise in Johor-bound transactions by Singapore-based users over the past two years to domestic inflation and the increase in the city state's goods and services tax from 7 to 9 per cent. 

After the Malaysian ringgit hit a record low of 3.55 to the Singapore dollar in February last year, many Singaporeans began closely tracking exchange rates, Lam said, with 40 per cent of the multicurrency mobile wallet's users in the city state converting funds into ringgit in advance whenever the rate was favourable.

"Instead of cutting back, Singaporeans are redirecting their budget by crossing the border to buy groceries, shop and dine at familiar brands such as Uniqlo, Haidilao and Ding Tai Fung at a lower price tag," Lam said.

Облегчение езды

Both governments have sought to tighten cross-border regulations this year. Malaysia has rolled out vehicle entry permits for Singapore-registered cars, while Singapore has impounded unauthorised Malaysian taxis.

Bilateral talks are reportedly under way to expand taxi services, which could further boost cross-border commerce. Currently, only licensed taxis may carry passengers across the causeway and they must pick up and drop off at designated terminals - Larkin Sentral in Johor Bahru and Ban San Street Terminal in Singapore.

 

Таксист на светофоре в Сингапуре. Правительства обеих стран стремятся расширить услуги такси в Джохоре. Фото: EPA

Last month, Singapore's Land Transport Authority said it had investigated more than 100 foreign-registered vehicles for illegal cross-border passenger services this year, with most still impounded pending investigations and court proceedings.

Singapore's Senior Minister of State for Transport Sun Xueling announced on Wednesday that bilateral talks were under way to allow Malaysian taxis to drop off passengers anywhere in Singapore and vice versa for Singaporean taxis in Johor Bahru. 

Malaysian Transport Minister Anthony Loke said last month that his government was "100 per cent ready" to legalise cross-border e-hailing, while acknowledging Singapore's concerns that its higher vehicle ownership costs could disadvantage local drivers.

"We have to find a way to allow it, so I think this will come sooner or later," Loke said.

Джентрификация Джохора

As connectivity improves, inflation has become a pressing issue for Johor, which aims to achieve developed state status by 2030. Johor's Chief Minister Onn Hafiz said in July that the influx of Singaporeans buying groceries and property was driving up local costs.

As a case in point, he cited a plate of nasi lemak with fried chicken costing around 9 ringgit in Johor vs 7 ringgit in Kuala Lumpur.

 

Рыбные прилавки на мокром рынке в малайзийском районе Джохор-Бару. По словам экономистов, цены на продукты питания в штате Джохор росли быстрее, чем в целом по стране. Фото: Reuters

While Johor's overall inflation rate has largely tracked the national average, its food and drink prices have climbed more rapidly in recent months, according to Lavanya Venkateswaran, a senior Asean economist with OCBC.

"Even so, should modestly higher inflation be accompanied by strong economic growth and better employment prospects, these would still constitute positive moves," she said.

"The authorities are focused on developing the JS-SEZ, ushering in manufacturing and associated services while providing employment opportunities to local Johor residents. These efforts suggest that economic growth will remain supported and could be higher than the national average."