Johor’s rapid development draws Singaporeans, but locals face soaring food and housing costs

As Johor’s economy accelerates, its cost of living is climbing just as fast — and locals are paying the price. The state’s strategic proximity to Singapore is fueling cross-border spending, pushing food and property prices to levels previously unseen in southern Malaysia.

Rising Demand From Across the Causeway

Johor’s Chief Minister, Datuk Onn Hafiz Ghazi, recently spotlighted the state’s inflation woes during a key business event in Johor Bahru. He pointed to a surge in Singaporean shoppers as a major contributor to rising prices, especially in food and rental sectors.
“Thousands of Singaporeans come here every weekend for grocery shopping,” Onn Hafiz noted, emphasizing the impact this has had on local pricing. A simple plate of nasi lemak with ayam goreng now costs RM9 (S$2.71), compared to RM7 (S$2.11) in Kuala Lumpur.

Property Boom Leaves Locals Behind

Real estate demand is also surging, driven by Singaporeans seeking affordable alternatives just minutes away from home.
A local developer informed Onn Hafiz that 300 new housing units were “completely sold out,” demonstrating how hot the Johor property market has become. But the downside, the Chief Minister warned, is that property prices are now “either rising or already higher than some in Singapore,” potentially locking out Malaysian residents from the market.

Government Promises Balanced Growth

Speaking at the 79th annual general meeting of the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), Onn Hafiz promised that his administration is actively working on inflation control measures.

“We must ensure this is not a zero-sum game,” he said. “Affordability must accompany prosperity.” He also urged businesses to collaborate with the state government in balancing growth and living costs.

Need for Affordable Housing

With Johor aiming to attain developed status by 2030, Onn Hafiz stressed the importance of ensuring local families aren’t priced out of their own communities. He acknowledged that while demand from Singapore is boosting the economy, it must be matched by a clear strategy for affordable housing.
He promised initiatives to build more budget-friendly homes and regulate housing supply to avoid speculative inflation.

A Cross-Border Ripple Effect

Johor’s economic boom, while promising for investors, is becoming a double-edged sword for residents. As food stalls adjust their prices and housing becomes scarcer for locals, the affordability gap continues to widen. This trend also holds broader implications for Indonesians commuting or migrating to Johor for work — potentially driving them to neighboring areas with lower costs.

Johor’s transformation into a regional economic magnet is undeniable, but unchecked price hikes threaten to alienate the very communities powering its growth. For Singaporeans, the weekend grocery run might be a bargain — but for Johoreans and nearby Southeast Asians, it’s a growing burden.

Sources: Mothership (2025) , Malay Mail (2025)

Keywords: Johor Chief Minister, Rising Prices, Singaporean Shoppers, Affordable Housing, Economic Growth, Inflation Control