logo
Final market study being done to determine JB-S'pore RTS Link fares: M'sian transport minister

Final market study being done to determine JB-S'pore RTS Link fares: M'sian transport minister

Straits Times2 days ago
Acting Transport Minister Jeffrey Siow (right) and his Malaysian counterpart Anthony Loke speaking at SRTC on June 30. ST PHOTO: KEVIN LIM
SINGAPORE - The operator of the upcoming Johor Bahru-Singapore Rapid Transit System (RTS) Link is in the midst of conducting a final market study to determine the fares for the cross-border rail link, and a decision on the price of a ride will be made closer to the start of operations.
Malaysia's Transport Minister Anthony Loke and Singapore's Acting Transport Minister Jeffrey Siow said this to reporters on June 30 after the unveiling of the first of eight trains that will serve the light rail line when it opens at the end of 2026.
Mr Loke said RTS Operations (RTSO) – a joint venture between Singapore transport operator SMRT and Malaysian public transport firm Prasarana – will determine the fares of the 4km rail link.
'Of course, we hope that the right price mechanism is in place to ensure that we can encourage more people to use the RTS Link,' he added.
'The whole idea of this project is to make the modal shift, to ensure that more people use public transport to cross the Causeway. So I think that is one of the important considerations,' Mr Loke said.
Mr Siow said the RTS Link fare has to be determined commercially, and RTSO will need to take into account demand and supply, as well as the alternative transport options , such as cross-border public buses, and how much they cost.
He added: 'We'll have to leave it to (RTSO) to figure it out, and I think they will do that probably closer to the service commencement.'
Regarding what a fair price would be , Mr Loke later said that the fare must be less than what it costs for passengers to use their own means of transport.
'For example, if a worker lives farther away and rides a motorcycle across the Causeway to come to Singapore, he may have to pay for fuel and other costs... If the RTS fare is lower than his expenses, it will definitely encourage him to use the RTS,' Mr Loke added.
'In the end, this is a huge expense, a huge investment for us,' he said. 'Both governments have invested a lot of money in this project, so we must meet that goal.'
Asked whether the RTS Link's operating hours would be adjusted to suit the travel patterns of Malaysians who travel to Singapore for work, Mr Loke said that some leave their homes as early as 5am and this is something that RTSO will need to take into account.
RTSO has said that trains on the line will run from 6am to midnight daily.
Mr Loke also said that Malaysia and Singapore are pushing for an open payment system with multiple ways to pay for an RTS Link ride , adding that this is a trend for public transport operators worldwide.
Meanwhile, Mr Siow was asked whether the opening of the RTS Link will have an impact on other transport modes, including the reduction of cross-border public bus frequencies.
To this, he said the intent of the rail link is to create more mobility, and there are no immediate plans to adjust bus schedules.
The event on June 30 was the first time that Mr Siow in his capacity as Acting Minister had met Mr Loke and Johor Chief Minister Onn Hafiz Ghazi.
Mr Siow said the RTS Link is dear to his heart, as he was part of the joint conceptualisation at the early stages of the project.
'We needed the right opportunity and the leadership to see it through, and we have that today. And it is almost surreal to me to see the RTS Link emerge out of the agreement that we signed eight years ago,' he said.
He added: 'I, and many Singaporeans and Malaysians, look forward to the continued close cooperation between both sides and the successful delivery of the project.'
Join ST's WhatsApp Channel and get the latest news and must-reads.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

The US sends lots of plastic trash overseas. Malaysia just said no thanks
The US sends lots of plastic trash overseas. Malaysia just said no thanks

Straits Times

time3 hours ago

  • Straits Times

The US sends lots of plastic trash overseas. Malaysia just said no thanks

Sign up now: Get ST's newsletters delivered to your inbox American scrap brokers sent more than 35,000 tonnes of plastic waste to Malaysia in 2024. KUALA LUMPUR - In the shadow of US President Donald Trump's tariff fights, a different kind of trade war is playing out involving candy wrappers and plastic bottles. On July 1, Malaysia, which received more discarded plastic from rich nations than any other developing country in 2024, effectively banned all shipments of plastic waste from the United States. That might not seem like a big deal. But the United States has increasingly relied on countries like Malaysia to deal with plastic trash. American scrap brokers sent more than 35,000 tonnes of plastic waste to Malaysia in 2024, according to trade data analysed by the Basel Action Network, a non-profit group that tracks plastic waste issues. In 2024, after seizing more than 100 shipping containers of hazardous materials sent from Los Angeles that had been improperly labeled as raw materials, Malaysian environment minister Nik Nazmi told reporters that 'we do not want Malaysia to be the world's rubbish bin'. The country's Ministry of Investment, Trade and Industry did not respond to a request for comment July 1. Turmoil in the little-known trade in plastic waste has its roots in a decision by China in 2018, for the same reasons as Malaysia, to ban imports of wastepaper and plastic. Before that, China had for years accepted as much as half of the globe's discarded plastic and paper. Western nations have since struggled with a buildup of plastic trash. The United States recycles less than 10 per cent of the plastic it discards. Food and other contamination in plastic waste hinders recycling, and a significant portion of plastic, like chip bags that contain layers of different plastics and other materials, simply can't be recycled economically. The rest ends up in landfills, is burned or is shipped overseas. And while new overseas destinations have emerged, a growing number of countries are starting to say no to trash. In 2025, Thailand and Indonesia also announced bans on plastic waste imports. The world produces nearly 500 million tonnes of plastic each year, more than double the amount from two decades ago, and a growing amount of plastic waste is turning up on coastlines and riverbanks, as well as in whales, birds and other animals that ingest them. Researchers have estimated that one garbage truck's worth of plastic enters the ocean every minute. China's ban 'sent shock waves through the global plastic waste trade,' said professor Tony R Walker at the School for Resource and Environmental Studies at Dalhousie University in Halifax, Nova Scotia, who researches the global flow of plastic waste. The countries that started to accept that discarded plastic 'quickly became overwhelmed,' he said. Much of that plastic trash ends up dumped in landfills or is burned, which releases harmful air pollution, or is simply released into the environment. People in rich countries may assume the plastic they diligently separate is being recycled, he said, something he termed 'wish cycling'. However, instead of going into a recycling stream, 'a lot of it gets redirected to waste,' he said. Malaysia's amended Customs Act bans all plastic waste shipments from countries that have not signed the Basel Convention, a global agreement that regulates hazardous waste, including plastic. That puts the United States, the only major country that is not a party to the agreement, in a particularly tricky spot. The amended law also sets stringent restrictions on plastic waste imports from other countries, saying they must contain only one type of plastic, with at most two per cent contamination, to ensure that the imported plastics are recycled and not discarded. That level would be challenging to meet for any plastic waste collected from consumers. In an email to clients sent June 20 and shared with The New York Times, chief executive Steve Wong of global plastic waste broker Fukutomi said shipments of scrap plastic to Malaysia had already 'come to a virtual standstill'. Ross Eisenberg, president of America's Plastic Makers, an industry group, said the effects of Malaysia's import policy on plastic waste remained unclear. Nevertheless, 'our industry remains focused on scaling up the use of recycled plastics in new products,' he said. 'These efforts support American jobs and drive economic growth, while conserving our natural resources and helping to prevent plastic pollution.' Malaysia's ban on plastic waste imports from the United States was prompted by the discovery of hundreds of containers filled with hazardous electronic and plastic waste that had been falsely declared as raw materials in order to bypass the country's trade control laws, said researcher Wong Pui Yi at the Basel Action Network. But local industry associations have urged the government to lift the ban on clean, recyclable plastic imports, arguing that the imports are necessary to help manufacturers meet their recycled-content targets. Brands like Nestlé, Coca-Cola and Pepsi have committed to using more recycled material in their products, said president CC Cheah of Malaysian Plastics Manufacturers Association, and the Malaysian recycling industry could still play a role. Dr Kate O'Neill, a professor of environmental science, policy and management at the University of California, Berkeley, said Malaysia's ban could mean that plastic waste starts flowing to other countries that are less able to handle the waste. Monitoring will be important, she said. 'The recycling industry still hasn't caught up with the disruption, so these exports are still needed.' That's why experts increasingly say that, on top of investing in recycling infrastructure, policies are needed to help rein in plastic production itself, for example by curbing demand for single-use plastics. Some countries negotiating a new treaty aimed at curbing plastic pollution have also called for caps on plastic production. That could come from packaging designs that cut down on plastic use, measures like plastic bag bans and overall policies that make manufacturers more responsible for the waste their products generate. Those policies have been spreading across the United States as well as globally. On July 1, a law went into effect in Illinois that prohibits large hotels from providing small, single-use plastic bottles for toiletries like shampoo and conditioner. Smaller hotels have until 2026 to comply. Also on July 1, Delaware began prohibiting restaurants from providing foam food containers, plastic beverage stirrers and plastic cocktail and sandwich picks, and requires that single-use plastic straws are only given out at the customer's request. NY TIMES

CNA938 Rewind - RTS Link to boost Johor, Singapore property markets
CNA938 Rewind - RTS Link to boost Johor, Singapore property markets

CNA

time4 hours ago

  • CNA

CNA938 Rewind - RTS Link to boost Johor, Singapore property markets

CNA938 Rewind More than just a solution to daily commuting woes, the Johor Bahru-Singapore RTS Link is poised to reshape the property market – driving demand, boosting property values, and spurring broader economic growth for both countries. Andrea Heng and Hairianto Diman chat with Terence Fan, Assistant Professor of Strategy and Entrepreneurship at SMU. They assess the economic impact of the upcoming cross-border train service on Johor and Singapore.

Johor-Singapore cooperation: Boom, bane or both?
Johor-Singapore cooperation: Boom, bane or both?

Business Times

time5 hours ago

  • Business Times

Johor-Singapore cooperation: Boom, bane or both?

Corporate Singapore has long moaned about high real estate costs and the lack of affordable labour – problems that the Johor-Singapore Special Economic Zone (JS-SEZ) is expected to tackle. On Jan 6, Singapore and Malaysia inked a formal agreement to establish the JS-SEZ to attract businesses in every thing ranging from manufacturing, to health and to digital. With a land area four times that of our tiny island-state, the JS-SEZ opens up the possibility for Singapore companies to set up in Johor Bahru. In May, a convenient light rail transit system connecting Singapore and JB was announced. Slated for launch end-2026, the JB-Singapore Rapid Transit System (RTS) Link will be able to serve up to 10,000 commuters during peak periods for every hour and in each direction, with a journey time of about five minutes. This should significantly reduce congestion along the Causeway and reduce travel times between JB and Singapore. While lowering costs and increasing efficiency should be golden words to corporate leaders' ears, every conversation I have had with business owners or CEOs have so far started with a grimace and ended with a groan. Clearly, the JB-Singapore story is more than cost reduction and transport efficiency. Competition with Singapore The closer linkage may offer opportunities, but it also presents formidable competition to Singapore – at least in the short term. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up RM1 is currently worth 30 Singapore cents. For Singaporeans, the favourable exchange rate means that prices are lower in Malaysia. Already, many are making day trips to JB to stock up on diapers, enjoy cheap meals and get pampered in a spa. And they are there not just for basic necessities. They are also going to Malaysia for health check-ups and simple medical treatments. Pharmaceuticals, too, are cheaper across the Causeway. Business owners in Singapore are worried that this will hollow out local demand in supermarkets, food and beverage (F&B) outlets and other specialised services. If the product is something that Singaporeans can buy in JB and carry home, it appears they are already doing it. As Singaporeans enjoy their days off across the Causeway, the dollars they would have spent at home otherwise is now being converted into ringgit (and if they fail to declare it, the purchases are not attracting goods and services tax). This has already happened in Hong Kong, where residents eat and play on weekends in nearby Shenzhen for half the cost. Hong Kong, as I have heard, is a thriving metropolis five days a week but a ghost town come Saturday. A more divided Singapore? The supply of land in Johor should ease commercial and industrial real estate prices here, which should have an eventual knock-on effect on residential real estate, making housing more affordable for first-time Singaporean homeowners. But as one business leader pointed out, if a guy loses his job or has to shutter his business, he will not be able to buy a house anyway. Also, existing homeowners will not be celebrating property prices coming down. Cost of living issues – so central to the discussions during the recent General Election and already exacerbated by the US tariffs – could loom even larger in the national consciousness. Middle and lower-income Singaporeans have been talking about buying a retirement home in Malaysia where housing is cheaper and savings stretch further. With JB becoming such an efficient commute away, will more than just silver-haired Singaporeans relocate? Working individuals, while continuing to be employed in Singapore for higher salaries, may consider commuting from homes in Forest City. Singapore businesses, to retain customers, may move with them. Such businesses could enjoy cost savings and offer lower prices in JB. However, the same products and services would not become cheaper in Singapore where the savings do not apply. This cannibalisation of a company's own business may lead it to bifurcate offerings between high-end Singapore stores and more basic shops across the Causeway. Think premium CS Fresh versus Cold Storage's standard fare. If their Singapore offerings become more high end, the less well-off would simply shop in Malaysia. Local outlets may increasingly cater principally to the well-heeled, likely to comprise a larger component of expatriates and uber-wealthy new citizens or permanent residents. If our country becomes a place where only the rich can afford to work and live, but the everyday Singaporean can only travel in to work, that may have an impact on the fabric and cohesiveness of our society. Will we see a 'two-speed Singapore' with a hollowing out of the middle and lower middle income demographic? And even if this does not happen at significant scale, will the everyday Singaporean start to feel less rooted in their home country? Intentional policies for social cohesion The issue is a complex one. Sure, Singapore needs to address property prices. Rent is becoming an untenably high portion of business costs; and citizens need access not just to affordable public housing, but the ability to aspire to upgraded homes. If the JS-SEZ ameliorates that problem, this would be a good long-term outcome. Likewise, productivity enhancements from efficiency of the RTS Link should be embraced. But in the near term, there will be discomfort and discombobulation. As the JS-SEZ and RTS Link come into operation, Singapore businesses and landlords will be affected. This may result in more precarious businesses failing or choosing to relocate offshore. That will in turn have an impact on their employees' livelihoods. So far, there has not been much discussion on this – but I think it is an issue that needs to be unpacked and tackled openly. We need to assess and address the implications that the new linkages will have in the short term, even while celebrating anticipated future upsides for big corporates and small businesses. On the employment front, upskilling and training need to be core. Singapore will have to accelerate its development into a higher-up-the-value-chain hub, especially in the services sector, where compensation packages are most attractive. Local businesses also need to upgrade to stay creative and relevant. This could be in the form of curating new concepts or offering innovative experiences unique to Singapore. The consequences to our social fabric must not be less front-of-mind. We need intentional policies to build community cohesion and make Singaporeans feel that this, here, is – and always will be – our home. On the business front, this could entail holding space for local entrepreneurs, F&B startups or small businesses. If a home-grown clothing label starts to feel squeezed out by big-name international brands, they will decamp offshore. On the community side, we must be purposeful in building a local identity – be it ever so diverse and messy – with shared spaces and events to enjoy and build cohesion and belonging. The economic benefits of JB-Singapore collaboration will take time to be felt, and in the near term, individuals and businesses will be economically discomfited. Let us not allow that uncomfortable adjustment to lead to a more divided Singapore community. The writer is joint managing partner at TSMP Law Corporation

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store