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Introduction
1
As the Members have mentioned, HDB retailers are facing
competition from suburban shopping malls and hyper marts.
2
Member has rightly focused on the role of HDB shops
in meeting the needs of local residents. They add to
the vibrancy of HDB communities.
3
To enable HDB retailers to adapt to changing market
conditions, HDB has progressively relaxed its policies
on shop tenancy such as change of trade, subletting
and assignment. However, HDB retailers must take the
lead in upgrading and revitalising their shops.
4
Members have called for HDB to enhance the vibrancy
of HDB shops and help HDB retailers adapt to changing
lifestyles. Where retailers are keen to improve the
competitiveness of their shops, I am pleased to announce
that the Government will provide assistance to help
them upgrade the physical environment and business operations.
Measures
to Help Revitalise HDB Shops
5 HDB will be introducing a new package of measures
called the Revitalisation of Shops Scheme (ROS). The
ROS will be targeted at areas where the HDB retailers,
whether sold or rental shops, are prepared to organise
themselves and take the lead to drive the revitalisation
project. Under the scheme, assistance will be provided
through three components, namely:
| a.
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Upgrading
of the common area. HDB will co-fund upgrading of
common area and facilities. For rental shops, HDB
and the Town Councils will pay for 100% of the upgrading
cost, up to $20,000 per shop. For sold shops, HDB
and the Town Councils will pay up to 50% of the
upgrading cost or $10,000 per shop. The balance
will be borne by the shop owners; |
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| b. |
Promotional
activities organised by the local Merchants Associations
(MAs). To encourage more MAs to organise promotional
activities to draw crowds to their neighbourhood
centres, HDB will co-fund 50% of the expenditure
incurred for the promotional activities, or up to
$1,000 per rental shop per year and $500 per sold
shop per year; |
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| c. |
Rent-free
period for HDB retailers to renovate their shops
while undertaking the overall upgrading and promotional
activities. |
6 To qualify for the ROS, the retailers must be represented
by a Merchants Association to ensure that there are
collective efforts and a common vision for their area.
They can apply for all or a combination of the above
items.
7
Besides the assistance provided by HDB, SPRING has also
enhanced its assistance for HDB retailers through the
Heartland Retail Programme which comprises two initiatives:
| a.
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Firstly,
SPRING will provide funding for revitalisation projects
driven by the MAs, such as the engagement of consultants
to develop marketing strategies to revitalise the
shops. SPRING will co-fund up to 70% of the costs
of manpower, equipment and professional services. |
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| b. |
Secondly,
SPRING will fund individual shops to upgrade their
business operations, skills or premises. SPRING
will co-fund up to 70% of the upgrading cost or
$10,000 per shop. |
8
We will launch this new series of assistance measures
on a pilot basis in a few clusters of shops in the later
half of this year and provide more details of the schemes
later.
9
In addition, the Workforce Development Agency (WDA)
is looking into a new Skills Upgrading Programme for
individual HDB retailers.
Review
of RPS
10 Meanwhile, HDB will continue with the Restructuring
Programme for Shops (RPS), to assist HDB shop tenants
located in areas where there is an over-supply of shops
and where business is poor, to exit the business. The
aim is to reduce supply of shops judiciously so that
the remaining shops will become more viable.
11
Since the RPS was announced in March 2005, HDB has offered
the programme to a total of 455 shops in 44 blocks.
Twenty blocks comprising 219 shops or 48% of the shops
will be cleared.
12
Under the present scheme, HDB will consider only those
blocks where more than 50% of the tenants wished to
quit. With the majority expressing desire to quit, HDB
will clear the entire lot of shops. Now that we have
cleared the shops in relatively large numbers, we are
ready to fine-tune our programme. Henceforth, HDB will
also consider blocks where at least 30% of the tenants
opting to quit, while those remaining agreeing to regrouping
where necessary. Regrouping of remaining shops is necessary
to avoid interspersed vacancies and inconveniences to
the residents. As per the current RPS, eligible tenants
who opt to quit will receive an ex gratia payment of
$60,000. Those who need to be regrouped will receive
a $10,000 removal allowance.
13
With this revision, we believe we would have reached
an optimal level of shops considering the needs of both
the tenants and the residents. Therefore, we are likely
to discontinue RPS after the next offering. Shop tenants
who are keen to participate in the programme should
take this opportunity to nominate themselves to HDB
for the RPS through their Advisers.
Wet
Markets and Hawker Centres
14 The Member has asked the Government to build wet
markets and market centres in the newer HDB towns. We
recognise that wet markets and hawker centres are focal
points for community interaction. However, with the
changing lifestyle of Singaporeans, the general demand
for traditional wet markets and hawker centres has trended
downwards over the years. Singaporeans, including the
elderly, are turning to modern amenities like supermarkets
for their grocery needs.
15
Currently, the Government sets aside land in the new
towns for commercial space development. The commercial
operator is free to decide the type of eating and marketing
facilities to provide, whether coffee shops or air-conditioned
food courts, wet markets or supermarkets. At the precinct
level, HDB will ensure that basic facilities in the
form of eating houses and mini-marts are provided to
meet residents’ needs.
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