Economic Impacts of Halal-Based Tourism: Assessing Challenges in Singapore and Johor

Abstract

This study examines the economic trajectory and structural challenges of halal-based tourism in the interconnected jurisdictions of Singapore and the Malaysian state of Johor. Amid a strong post-pandemic recovery, the global Muslim travel market is projected to reach 245 million international arrivals by 2030, with associated expenditure of approximately USD 230 billion (Mastercard & CrescentRating, 2025). Using a comparative case-study methodology that synthesizes data from the Global Muslim Travel Index (GMTI), the Singapore Tourism Board (STB), and Malaysia's Department of Statistics (DOSM), the study finds that Singapore, despite its status as a non-OIC nation, has sustained its leadership through world-class infrastructure and an increasingly sophisticated digital-assurance approach to halal-friendly services, while Johor has positioned itself as a high-impact industrial and heritage destination under the Johor-Singapore Special Economic Zone (JS-SEZ). Critical challenges nonetheless persist, including an over-reliance on food-based services in Singapore and significant certification barriers facing small and medium enterprises (SMEs) in Johor. The analysis suggests that aligning halal-tourism development with the Sustainable Development Goals (SDGs) and operationalizing a Responsible, Immersive, Digital, and Assured (RIDA) framework are essential for long-term competitiveness. The study concludes that regional synchronization of halal standards between Singapore and Malaysia, together with the completion of the Rapid Transit System (RTS) Link, will be among the primary drivers of economic value in the corridor's post-2026 landscape