Johor Bahru’s Shifting Shopping Landscape: “Singapore Pricing” and the Rise of Suburban Spending
Johor Bahru (JB) is experiencing a notable shift in consumer behavior this Chinese New Year, as locals sense increasingly “priced out” of their own city. A phenomenon dubbed “Singapore pricing” – where businesses cater to the stronger Singapore dollar and adjust prices accordingly – is driving residents to seek more affordable options further from the city center and online.
The Impact of “Singapore Pricing”
The trend isn’t simply about expensive goods; it’s about a perceived shift in who businesses prioritize. As one resident, James Chia, a real estate managing director, noted, he’s accumulated enough CNY goodies over time and is now turning to online platforms like Shopee for better deals. This reflects a broader pattern of locals curbing spending and seeking value.
“Being located just beside Singapore causes spillover economic effects in Johor,” explains Noranita Abdamia, a senior lecturer of economics at MARA Technological University’s Pasir Gudang campus. “When the Singapore dollar is stronger than the ringgit, items sold in ringgit are seen as cheaper by Singaporean buyers, but expensive for locals. Businesses will likely price their goods based on the spending power of their customers.”
From Downtown Bazaars to Suburban Hypermarkets
This price sensitivity is leading shoppers away from traditional CNY bazaars in downtown JB and towards more budget-friendly hypermarkets in areas like Masai, Permas Jaya, Pulai, and Skudai. Gelang Patah resident Albert Yap exemplifies this trend, preferring to shop near his home in Iskandar Puteri to avoid the higher costs in the city center. He was observed loading multiple cartons of mandarin oranges and soft drinks into his vehicle at NSK Trade City.
The shift isn’t limited to groceries. Vendors at CNY bazaars across the state capital report “gradual business” this festive season, with Singaporeans making up a larger portion of their customer base, but even those shoppers are buying less. Abalone and bird’s nest vendor Yeo Tung Siong expressed concern, stating that without Singaporean customers, sales would be significantly lower.
The JS-SEZ and Rising Costs
Beyond the influence of Singaporean spending power, broader economic factors are at play. The upcoming Johor-Singapore Special Economic Zone (JS-SEZ) is contributing to rising costs, as companies compete for workers and anticipate increased investment. Sunway University economics professor Yeah Kim Leng points out that businesses are raising wages and prices in anticipation of the JS-SEZ, further exacerbating the issue.
The JS-SEZ, a joint initiative between Malaysia and Singapore, is expected to span 3,571 sq km across southern Malaysia. Singapore-based firms have already invested over $5.5 billion in Johor since the memorandum of understanding was signed in January 2024.
Inflation and the Strengthening Ringgit
Johor experienced the highest inflation among Malaysian states in December 2025, at 2.3%, exceeding the national average of 1.6%. This, coupled with the strengthening ringgit against the Singapore dollar (reaching 3.089 per Singapore dollar as of February 13, 2026), is further discouraging cross-border shopping.
As Tey Tian Hwang, president of the Johor Bahru Small Businesses Association, notes, even Singaporeans earning in Singapore dollars are questioning the value of driving to JB to shop.
What Does This Mean for Johor’s Retailers?
The combination of these factors presents a challenging environment for Johor’s retailers. With both locals and Singaporeans tightening their belts, businesses are facing an uncertain festive season. Many are reporting significantly lower sales compared to previous years, with some seeing a drop of over 50%.
Frequently Asked Questions
- What is “Singapore pricing”? It refers to the practice of businesses in Johor Bahru adjusting prices upwards to cater to the spending power of Singaporean shoppers, making goods more expensive for locals.
- Where are Johor Bahru residents shopping instead of downtown? They are increasingly turning to suburban hypermarkets and online platforms like Shopee and Lazada.
- What is the JS-SEZ? The Johor-Singapore Special Economic Zone is a joint initiative to boost business and investment in the region.
- Is inflation a factor? Yes, Johor experienced the highest inflation rate among Malaysian states in December 2025.
Pro Tip: If you’re planning a CNY shopping trip to Johor Bahru, consider exploring areas outside the city center for better deals and lower prices.
What are your experiences with shopping in Johor Bahru? Share your thoughts in the comments below!
