The Johor–Singapore Rail Transit System (RTS) is expected to reshape, rather than undermine, Singapore’s retail landscape by facilitating daily cross-border commuting instead of encouraging frequent shopping trips. Maybank Securities’ Liu Miaomiao estimates a modest short-term retail spending leakage of 3–4% to Johor, which she considers manageable, and believes the RTS will ultimately support retail growth over the longer term.

While discretionary spending—particularly at food and beverage outlets in northern Singapore—may soften initially, essential spending such as groceries is expected to remain resilient. Liu also highlighted increased labour inflows from Malaysia as a key upside, helping to ease Singapore’s chronic labour shortages, especially in service and F&B sectors.

In the REIT space, Liu remains cautiously optimistic. Mall owners with northern exposure, such as Frasers Centrepoint Trust, may see weaker footfall in the short term but could benefit over time from lower tenant costs and more predictable consumption as population density rises. CBD-focused REITs—including Suntec REIT, Lendlease Global Commercial Trust and CapitaLand Integrated Commercial Trust—are expected to gain from stronger footfall and stable rental reversions. Liu maintains “buy” calls on Suntec REIT and Lendlease REIT, citing attractive valuations, stronger balance sheets and a supportive interest-rate outlook.

Separately, Phillip Securities’ Hashim Osman pointed to a strong rebound in S-REITs in 2025, supported by falling interest rates, a weaker US dollar, healthy occupancies and steady rental growth. He expects this momentum to continue as lower financing costs lift net asset values and distributions. REITs such as Stoneweg Europe Stapled Trust and Prime US REIT are viewed favorably due to robust balance sheets, improving cash flows and recovery potential as rent-free periods expire and occupancy improves.

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