FCT weighs Johor Bahru retail threat with RTS Link, bets on Northern Singapore
Retail sales leakage to Johor Bahru is expected to increase from about 4 per cent to about 5 per cent
[SINGAPORE] The manager of Frasers Centrepoint Trust (FCT), which owns retail mall Causeway Point in Woodlands, told unitholders on Friday (Jan 16) that it is “cognisant” of market concerns regarding a shift in retail spending towards Johor Bahru, Malaysia in view of the upcoming Johor Bahru-Singapore Rapid Transit System (RTS) Link.
The manager, which was responding to unitholders’ queries ahead of the company’s annual general meeting (AGM) on Jan 23, added that it had “reviewed the matter extensively” and also engaged market consultancy firm CBRE Research to conduct independent market studies and shopper surveys to assess the current market trends and implications.
“The manager is confident that growth opportunities from upcoming developments in the northern region of Singapore will outweigh the potential increase in cross-border retail spending in Johor Bahru,” it said.
The RTS Link is set to connect Singapore’s Woodlands North MRT station with Bukit Chagar station in Johor Bahru with a five-minute journey time. Services are expected to begin in December this year, with co-located immigration facilities at each end allowing travellers to clear both countries’ immigration at one go.
The easier transportation links have raised fears that shoppers will prefer to stretch their dollar in Johor Bahru instead of at local malls.
According to CBRE’s Retail Property Market Overview, the estimated retail sales leakage is expected to rise from its current level of around 4 per cent, to about 5 per cent by 2032.
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Betting on the North
The manager of FCT said that it is banking on a 25 to 27 per cent population surge in Singapore’s North region and the Woodlands Regional Centre development to drive shopper traffic to Causeway Point.
A growing working population and residential catchment in the north of Singapore, alongside a “proactive tenant mix” strategy should help FCT outweigh the potential increase in cross-border retail spending in Johor Bahru, said the manager.
More than 50,000 residential units are expected to be added there in the next 10 to 15 years, while the Woodlands Regional Centre should see the creation of about 100,000 jobs, said the FCT manager. This will increase the shopper catchment in the North region of Singapore, it said.
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The North-South corridor, which will directly connect Woodlands, Sembawang and Yishun to the city centre, should also “expand the catchment area for FCT’s malls” and drive greater retail spending, it added. The trust also owns Northpoint City in Yishun.
The presence of Malaysian food and beverage brands like Zus Coffee in its malls, will also reduce the likelihood of cross-border travel and prevent leakage of shoppers to Johor Bahru, added the manager.
“More importantly, the manager will continue to proactively enhance the retail and F&B offerings across FCT’s portfolio, with a keen focus on Causeway Point,” it said. “Plans are underway to transform Causeway Point into a regional mall with refreshed retail concepts and a well-diversified, more differentiated tenant mix to meet the evolving needs of its shoppers.”
This change will include a reduction of exposure to trade categories affected by cross-border shopping, alongside increased representation in “more resilient sectors” such as education and enrichment, essential services, as well as international fashion and accessories brands, said the manager.
It added that more details would be shared at the upcoming AGM.
Cathay cinema replacement tenants found
The Securities Investors Association (Singapore), or Sias, had also asked FCT about a decline in its retail portfolio occupancy to 98.1 per cent as at 30 September 2025, down from 99.7 per cent a year ago, which was attributed to the exit of Cathay Cineplexes. Cathay had cinemas in FCT’s Causeway Point and Century Square malls.
FCT’s manager said “some rental arrears were recovered” after the collapse of the mm2 Asia-owned cinema chain, but noted that Cathay accounted for less than 1 per cent of FCT’s total gross rental income and less than 2 per cent of net lettable area.
The manager added that it “successfully secured replacement tenants” for both the vacated spaces this month and will be providing an update in its upcoming first quarter business update.
In October last year, FCT filed a S$2.6 million claim against mm2 Asia, which guaranteed lease obligations of its Causeway Point cinema.
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