By train
Singapore is the southern terminus of Malaysia's Keretapi Tanah Melayu (Malayan Railway or KTMB) network. It runs two day trains (the Ekspres Sinaran Pagi and Ekspres Rakyat) and a sleeper service (Ekspres Senandung Malam) daily from Kuala Lumpur. From Singapore to Kuala Lumpur, the Sinaran Pagi departs at 8:40AM, the Ekspres Rakyat at 1PM and the Senandung Malam at 10:15PM. There is also a day train (the Lambaian Timur departing Singapore at 6AM) and sleeper (Ekspres Timuran departing at 6:15PM) daily along the "Jungle Railway" between Singapore and Tumpat, near Kota Bharu in the East Coast of Malaysia. Trains are clean and fairly efficient, but slower than buses.
Trains arrive at the small colonial-era railway station in Tanjong Pagar at the southern edge of the CBD, a bit of a hike from Tanjong Pagar MRT station. There's no ATM in the immediate vicinity, but there is a money changer, a simple restaurant and a taxi stand just outside to the right. Alternatively, you can also get off in Woodlands right after immigration and continue into Singapore by bus or taxi.
Note that KTMB tickets in Singapore will be charged in dollars, while those bought in Malaysia will be charged in ringgit at a 1:1 rate. A ticket which costs RM10 in Malaysia will thus cost $10 if bought in Singapore! There are three ways to avoid paying double:
1. Book your tickets as return tickets from Malaysia. For example, KL-Singapore-KL will be charged at the ringgit rate.
2. Cross the border by road and then board the train at Johor Bahru. Note that making a reservation is highly advisable; the easiest way is to book online.
3. Buy the cheapest ticket you can from Singapore to JB, then your 'real' ticket from JB onward. Change to your 'real' seat after crossing the border.
Also note that you will not get a Malaysian entry stamp in your passport if you enter the country by train, so don't panic. Passports are checked (but not stamped) by Malaysian immigration before you enter the platform to board the train in Tanjong Pagar but you will only get a Singapore exit stamp at Woodlands station, about half-an-hour's journey away. Coming in from Malaysia, the situation is much more conventional - Malaysia stamps you out in Johor Bahru (you don't even need to get out of the train) and Singapore stamps you in at Woodlands (you will have to disembark and walk through immigration, though).
-information courtesy of wikitravel, as accurate as date of publishing-
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