Oral reply to PQ on Ensuring Commercial Rent Affordability for SME Tenants at JTC and HDBs

Question

Mr Kenneth Tiong Boon Kiat: To ask the Deputy Prime Minister and Minister for Trade and Industry (a) what oversight ensures (i) commercial rents by landlords such as JTC and HDB remain affordable for SME tenants and (ii) that tenant-mix diversity by gross-floor-area includes a substantial share of SMEs or local brands; and (b) if not, how does the Government reconcile SME support with allowing purely commercial operations.

Oral Answer (to be attributed to Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong)

1. JTC and HDB have frameworks in place to ensure that competitive rents are offered to tenants, including SMEs. JTC also monitors industrial rents closely to guide the release of new industrial land plots to meet the demand for industrial land and space. Industrial rents for JTC’s developments are currently at an average of ~10% below prevailing market rates. Similarly, commercial properties let out by HDB are generally priced below market rates, and 90% have not seen an increase in rents in the last five years.

2. Both JTC and HDB offer staggered rent adjustments for eligible tenants that are renewing their leases, to help them manage increases in rentals. HDB also has schemes in place to support startups and social enterprises by providing rental discounts. Currently, the majority of JTC’s and HDB’s tenants are SMEs. JTC and HDB do not impose controls on tenant mix by business size or ownership.

3. The Government will continue to support SMEs holistically through a comprehensive suite of measures, such as the Enterprise Financing Scheme, which supports businesses by sharing the risk on loans extended by Participating Financial Institutions. There are also schemes such as the Enterprise Development Grant and Productivity Solutions Grant to help businesses upgrade and improve their productivity.