Oral reply to PQ on Effect on Retail Tenant Mix and Leasing Terms at The Clementi Mall Following Acquisition by Owner of Neighbouring Mall

Question:

Mr David Hoe: To ask the Deputy Prime Minister and Minister for Trade and Industry regarding the acquisition of The Clementi Mall by a property firm which owns Grantral Mall@Clementi, (a) whether the Competition and Consumer Commission of Singapore (CCS) has assessed the competition effects on retail tenant mix and leasing terms in the Clementi catchment; and (b) whether the Ministry will issue guidance on when such mall acquisitions shall be notified to CCS for competition review.

Oral Answer (to be attributed to Senior Minister of State for Trade and Industry Low Yen Ling)

1.      Tenancy mix and turnover in commercial developments are the result of commercial decisions made by both property owners and tenants. These decisions are influenced by market factors, such as consumer demand preferences and prevailing economic conditions. 

2.      With regard to competition concerns arising from mergers and acquisitions, Singapore adopts a voluntary merger notification regime to balance between effective regulatory oversight and keeping compliance costs low. Merger parties are expected to self-assess whether their transaction may give rise to potential competition concerns. Merger parties may approach the Competition and Consumer Commission (CCS) for pre-notification discussions or seek guidance on whether the merger may be anti-competitive. To support businesses in this process, CCS has published detailed guidance on the circumstances under which mergers may raise competition concerns. 

3.      The parties to the acquisition of The Clementi Mall have not formally notified CCS for a merger assessment. CCS will continue to monitor market developments and is empowered to step in, if it obtains information suggesting that a merger may result in potential competition issues.