Proposed RTS2 Could Transform Iskandar Puteri and Forest City

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Johor Proposes RTS2 Link Between Tuas and Iskandar Puteri

Daily commuters from Johor’s southwestern townships may soon see a game-changing transport option. Johor Chief Minister Onn Hafiz Ghazi has proposed a second Rapid Transit System (RTS) Link, connecting Tuas in Singapore to Iskandar Puteri in southern Johor.

This RTS2 link would complement the under-construction RTS between Bukit Chagar and Woodlands North, due to open in early 2027, and directly benefit residents in Pontian, Iskandar Puteri, Kulai, and other west Johor districts.

Currently, commuters relying on Causeway Link buses face long waits and no alternative public transport across the Tuas Second Link, unlike the Woodlands Causeway which has multiple cross-border options.

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Why RTS2 Could Be a Game Changer

For residents like Foh, who spends up to two hours each way on packed buses to Singapore, an RTS station in Iskandar Puteri would mean:

  • Shorter travel times with fewer queues

  • Greater reliability compared to bus services

  • Direct train access to Singapore’s Tuas area

Similarly, Puteri Harbour resident Muhammad Syahmi Sarbani believes an RTS station would revitalise the area, making it more attractive for both residents and businesses.

Potential Benefits for Property and Economic Development

Property analyst Samuel Tan of Olive Tree Property Consultants says RTS2 could rejuvenate Johor’s southwest, similar to how the first RTS has boosted land values in Johor Bahru’s city centre. Land near Bukit Chagar rose from RM700 to RM1,500 per square foot after the first RTS announcement.

Key beneficiaries of RTS2 could include:

  • Iskandar Puteri – home to high-rise apartments, Legoland, Gleneagles Medini Hospital, and retail hubs

  • Forest City – part of the Johor-Singapore Special Economic Zone (JS-SEZ), planned as a financial hub and family office destination

  • Surrounding industrial and commercial areas that could attract Singaporean businesses looking to expand into Johor

Academic Serina Rahman from the National University of Singapore notes that better connectivity would enhance the SEZ’s appeal, enabling smooth cross-border movement for both people and goods.

Challenges: Connectivity and Viability

Despite its promise, experts caution that RTS2 faces hurdles:

  • Last-mile connectivity in Iskandar Puteri is limited, with public transport networks underdeveloped and reliant on private vehicles

  • Proposed ART (Autonomous Rail Rapid Transit) lines in Johor may not fully integrate with RTS2 unless specifically planned

  • Tuas station integration in Singapore would be tricky, as Tuas MRT stations are in an industrial zone far from major residential areas

Transport experts like Walter Theseira stress that without integration into both countries’ existing rail and bus networks, RTS2 may not be viable for daily commuters.

Another concern is passenger volume. Tuas Checkpoint processes around 123,000 travellers daily—less than half of the Causeway’s volume—with 68,000 being motorcyclists who may prefer their current, toll-free commute.

Funding and Political Will

Analysts agree that Johor’s proposal shows serious intent backed by both the state government and the Johor royal family. However, Singapore’s participation and funding commitment remain uncertain.

The first RTS costs RM10 billion, with Singapore funding 61% and Malaysia 39%. Given RTS2’s potentially lower ridership, experts like Terence Fan from Singapore Management University doubt the same cost-sharing ratio will appeal to Singapore.

Fan warns that without sufficient daily travellers, ticket prices could be high and the project may struggle to justify construction costs—raising the question of whether improved bus, taxi, or ferry services could be a more practical alternative.

What RTS2 Could Mean for Property Investors

If realised, RTS2 could drive property value appreciation in Iskandar Puteri, particularly around Puteri Harbour, Medini, and Forest City.

  • Residential: Potential for higher occupancy rates in existing high-rises

  • Commercial: New demand for retail, hospitality, and office space near the station

  • Industrial: Attraction of Singapore-based companies seeking expansion within the JS-SEZ

For investors already holding KL properties, RTS2 offers a diversification opportunity into transit-oriented developments in southern Johor.


Bottom Line: RTS2 has the potential to reshape Johor’s southwest, but its success will hinge on integrated transport planning, clear funding commitments, and realistic passenger projections. If implemented well, it could be a catalyst for growth in Iskandar Puteri and beyond.

Explore Malaysia’s evolving property hotspots—from KL’s city centre to Johor’s emerging SEZ corridors—at klproperty.cc.