- Joined
- Apr 14, 2011
- Messages
- 16,884
- Points
- 113
Woodlands shopkeepers lament slow business as easier border crossing draws more shoppers to JB
Some shopkeepers in Woodlands and Marsiling fear that the greater ease of crossing the Causeway to Malaysia using QR codes and the upcoming rail link will make Johor Bahru even more attractive to Singapore shoppers.
A view of Marsiling Mall on Dec 10, 2024. (Photo: CNA/Ooi Boon Keong)
When Mr Jeffrey Neo started his furniture business more than 10 years ago, it was so successful that he had four outlets in public housing estates, including one each in Marsiling and Woodlands.
Things could not be any more different today. He is now left with his last outlet at Block 18 Marsiling Lane after he shuttered his third outlet in Woodlands in June last year. And still, business is continuing to slide.
“Since the Causeway reopened after COVID-19 (in April 2022), business has dropped by at least 50 per cent,” the 66-year-old who owns Eleon Furniture & Renovation said.
This slowdown has been especially pronounced as border congestion eased over the past two or three years.
Even though Mr Neo acknowledged that many factors may hurt brick-and-mortar businesses such as his, he placed the most blame for the business downturn on the competition just over the Causeway in Johor Bahru (JB), Malaysia.
Singapore’s stronger currency and overall higher business costs mean that he could never beat furniture shops up north in terms of price, Mr Neo added.
He told CNA TODAY that he hardly sees young or new faces at his shop, with only older, long-time customers still patronising his business.
Asked what he intends to do to arrest the decline of his business, Mr Neo sounded almost defeatist: “I’ll just continue running the shop until the day I’m forced to close.”
The challenges facing such brick-and-mortar business operators could well increase, with the greater ease in crossing the borderalready making JB an ever more appealing shopping destination for Singaporeans.
Since March, travellers arriving in and departing Singapore at the land checkpoints by car have been able to clear immigration more speedily with QR codes instead of presenting their physical passports. Come Monday (Dec 16), this will be extended to those travelling by bus.
And by the end of 2026, the Johor Bahru-Singapore Rapid Transit System (RTS) Link is expected to be completed, then-prime minister Lee Hsien Loong said in October last year. This is only making Singapore businesses near the border more fearful that their clientele will find it easier to shop up north.
Most of the 18 businesses in the Woodlands and Marsiling area that CNA TODAY visited this week shared similar experiences as Mr Neo. Since the border reopening, sales have dropped between 30 and 50 per cent, they said.
Singapore's land checkpoints with Malaysia have seen greater numbers than in the pre-pandemic years. Five million travellers crossed the Woodlands and Tuas checkpoints during the September school holidays. On Sep 6, a single-day record of 534,000 travellerscrossing the border was set.
Close to 28 million travellers have used the QR code option for immigration clearance at the land checkpoints as of Dec 1, the Immigration and Checkpoints Authority (ICA) said.
Some Woodlands residents told CNA TODAY that they are buying goods from JB either more frequently or in larger quantities in recent years, mainly due to the rising cost of living that adds pressure on them to pinch pennies.
Though crossing the border has been made more convenient, it cannot fully beat the convenience of the neighbourhood shops, which they still turn to for specific items such as perishables goods or things that they need to buy urgently.
In the meantime, merchants are calling for more help to be handed out to ensure that they do not end up shuttering their businesses for good.
Related:
Many retail and service owners in the Marsiling area reported a drop in sales since COVID-19 of up to 50 per cent. Business has been even grimmer this year than the last, they told CNA TODAY.The higher cost of living has pushed consumers to look for cheaper alternatives, including online shopping platforms or by hopping across the border.
For some businesses that used to be situated at the Old Woodlands Town Centre, some 500m from the checkpoint, they never recovered from their relocation back in 2017.
Most of them moved to Marsiling Mall, a 25-minute bus ride from Woodlands Checkpoint.
Mr Chan SK, 60, owner of See Toi Watches at Marsiling Mall, said: “When we were at Old Woodlands, our customers were a good mix of Singaporeans and Malaysians since we were right outside the checkpoint. Now, my customers are regulars from Old Woodlands and the residents around here.”
Mr Chua Lay Sing, 61, is chairman of Woodlands Town Centre Merchants’ Association, which includes operators in Marsiling Mall. He said that in comparison to the Old Woodlands Town Centre location, Marsiling Mall’s location is “not here nor there”, putting businesses at a disadvantage.
Mr Chua, who also runs a dim sum stall, said that four to five retail stores in Marsiling Mall have closed down after the COVID-19 pandemic.
Business has also fallen at blocks 18 to 19 Marsiling Lane, a 10-minute drive from Woodlands Checkpoint.
Due to its proximity, the hawker centre there has long been a hot spot for Malaysians looking to have a meal before their work day starts. But even this is not enough to save the overall level of business there from dwindling.
Mr Ricky Lim operates Marsiling 81, a dried goods store, at Block 19 Marsiling Lane. On the plus side, the 58-year-old observes that customers who still patronise his shop are buying items in bigger quantities.
“My customers told me eating out is getting more expensive, so they are starting to cook at home more,” Mr Lim said.
However, overall sales have still dropped 20 to 30 per cent, he added.
Mr Lim is also the chairman of the 18-21 Marsiling Merchants' & Hawkers' Association, overseeing the hawker centre, wet market and some 30 merchants operating at blocks 18 to 19 Marsiling Lane.
Still, it’s not doom and gloom for all businesses in Woodlands.
For instance, Mr Samuel Pei, co-founder and director of KC Group – parent company of various hairdressing and beauty brands such as Kcuts and Apgujeong Hair Studio – said that the lower-value, quick-service barber businesses are less affected.
This is because a consumer might not find it worthwhile braving a traffic jam for the few dollars that can be saved by going to JB, he explained.
However, for the brands that offer “bigger ticket value with not-so-regular purchase frequency” such as hair and beauty treatments, there has been a “modest” impact, Mr Pei added.
And although many Woodlands and Marsiling shops said that they are languishing, most of the employees at eight shops that CNA TODAY visited in Causeway Point mall said that they had not noticed a significant decline in sales in recent years. They all declined to be quoted because they do not have permission to speak to the media.
Professor Lawrence Loh from the National University of Singapore (NUS) Business School said that the resilience of Causeway Point may be due to the fact that it is located next to a bus interchange and MRT station, having a “larger catchment area than the neighbourhood stores”.
Unlike customers who would typically visit their nearest neighbourhood shop to specifically buy items, visitors patronise big malls to do more than just shopping.
Prof Loh, who is from the school’s department of strategy and policy. added: “Often, the outing is a total experience that may include eating and entertainment conveniently available without having to travel across the country.”
Not every shop benefit equally, though, from Causeway Point’s strategic location and value proposition.
A promoter at Metro said that the department store has been visibly quieter and emptier even during its recent Black Friday sales period, which is usually very busy.
The promoter, who has been working at the store for a few years, added: “My colleagues and I are sure next year will be worse, and I’m worried I will lose my job if this situation persists.”
Some merchants reported an uptick in sales recently, boosted by the expiring Community Development Council (CDC) vouchers and the December cash payout under the government's Assurance Package.
Others noted a brief increase in sales when Malaysia’s Vehicle Entry Permit (VEP) policy was rolled out in October. They believe that this was because some residents who had not received the permit have decided not to enter Malaysia.
Such was the case for 42-year-old Mohd Faizul Abdul Rahim, who has crossed the border only once after its post-COVID reopening.
He said that it was in part due to him getting a better-paying job, which eased the pressure of having to go north to save money while shopping.
Then, most recently, he had his VEP application rejected twice for various reasons and that has put him off from heading to JB.
“I just can’t be bothered to drive up anymore.”
Related:
"SAVE HUNDREDS MONTHLY" BY SHOPPING IN JB
A Woodlands resident who wanted to be identified only as Mr S, 55, estimated that he saves S$200 a month by going to JB once a week to buy groceries and other household items.Like many residents interviewed, the trips he makes to JB include not just shopping, but also having a meal and going for services such as massages.
These residents said that the cost of food in JB is the same as Singapore, but services such as those offered by massage parlours and hair salons are significantly cheaper there.
Mrs Jane Wee, 54, plans to go to JB to buy new clothes for the Chinese New Year. The homemaker frequents malls such as City Square Mall and Mid Valley Southkey, and has her eye on branded apparel, which she said is cheaper there.
Her purchases include clothes for her seven-month-old granddaughter. Baby apparel in Singapore retail stores such as Kiddy Palace can cost twice as much as stores in JB of the same quality, Mrs Wee lamented.
Woodlands and Marsiling businesses are bracing for further impact when the RTS Link begins service, tentatively by end-2026.
The rail line will cut cross-border travelling time to five minutes and is set to be able to transport 10,000 passengers an hour in each direction.
Businesses are concerned that Woodlands residents who are deterred by traffic jams at the Causeway will be encouraged to travel to JB by rail more often.
Public service employee N Goh, in her 30s, said that due to the traffic jams, her family typically plans trips to JB in advance, sometimes staying there overnight to avoid the heavy traffic back to Singapore.
“I see myself going more often to JB via RTS, provided there are no queues,” she added.
"ONE STEP AT A TIME"
Commenting on the competition faced by businesses in Woodlands, Prof Loh of NUS Business School said that retailers in JB and the Woodlands area are vying for “somewhat similar” customer segments: These would be price-sensitive consumers looking for good bargains.He acknowledged that the stronger Singapore currency and high rental costs in Singapore pose “an inherent challenge that is hard to surmount”.
“It will be hard to justify helping businesses in just a specific locality,” he added.
However, businesses still hope that more can be done to help them stay afloat.
A few merchants said that the CDC vouchers have helped them since they encourage spending, but the vouchers are usable only at certain shops.
The voucher scheme was launched in June 2020 to help Singaporean lower-income households defray their cost of living and at the same time, to support hawkers and heartland merchants affected by the COVID-19 pandemic.
Some asked for controls over what goods can be brought into Singapore from across the border, in hopes that this will push Singapore shoppers to choose domestic buys.
There are already existing regulations that prohibit importation of certain goods altogether, or that require specific permission be obtained before a traveller brings the goods into Singapore.
Related:
Generally, items bought from overseas and brought into Singapore are subject to Goods and Services Tax (GST), but travellers are given tax relief based on their duration of stay overseas.If a Singaporean travels overseas for less than 48 hours, they are given a relief for up to S$100 of the items’ value. If they take a trip longer than 48 hours, the GST relief is up to S$500.
On their part, business figures are trying their level best to retain clients and stay competitive.
Mr Pei of KC Group said that for its higher-end salon brands, they differentiate themselves by offering better quality services.
"We have the full Korean experience with Korean director stylists who can give consumers more trendy Korean-themed haircut and styling, which they may not be able to fully achieve in Malaysia," he added.
Mr Chua, the chairman of Woodlands Town Centre Merchants’ Association, said that facing an uncertain future, Marsiling merchants can take only “one step at a time”.
They are banking on their accessibility to continue attracting customers.
Mr Lim, chairman of the 18-21 Marsiling Merchants' & Hawkers' Association, believes that his dried goods business will remain competitive.
His goods are priced lower than in supermarkets and new Build-to-Order flats have popped up in Marsiling in recent years, bringing in a constant stream of customers.
Indeed, Ms Goh who foresees going to JB more often after the RTS Link opens said that she still turns to neighbourhood shops near her house to buy perishables, heavier items or items that she needs urgently.
Retailers who are now seeing a rise in servicing requests hope that this proximity and occasional contact can reap benefits in the long run, even if it does not rake in the dollars in the near term.
An optometry shop employee who asked to be identified only as Ms Lee noted that many customers go to her shop to service spectacles that they bought from across JB.
“By providing services, I hope to build a good relationship with them. Maybe for their next purchase, they can turn to our shop,” she said.
