Oral reply to PQ on managing commercial rentals given rising costs and high churn in F&B sector

Oral reply to PQ on managing commercial rentals given rising costs and high churn in F&B sector

Question

Mr Vikram Nair: To ask the Deputy Prime Minister and Minister for Trade and Industry whether any measures need to be taken to manage commercial rentals given the rising costs and high churn in the food and beverage sector.

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

1. Rent increases for private retail spaces at the aggregate level have generally trended below the inflation rate in the past three years. There are variations in rent at the local level due to locational and property-specific attributes. For example, rents may vary across areas with different population density, whether the retail space is in a shophouse or shopping mall, and the age of the property. Businesses can choose the type of retail space that best meets their needs.

2. To help our businesses manage costs and remain competitive, the Government has introduced the 50% Corporate Income Tax rebate for Years of Assessment 2024 and 2025, capped at $40,000, with a minimum benefit of $2,000 for companies with at least one local employee. Enterprise Singapore (EnterpriseSG) has also rolled out schemes to help F&B businesses innovate their offerings and improve their productivity. For example, FoodX, a programme supported by EnterpriseSG and run by the Singapore Productivity Centre, enables F&B businesses to outsource their food preparation to central kitchens and other manufacturers. This allows them to streamline operations and reduce manpower-intensive processes. In addition, EnterpriseSG also provides support to retailers who embark on experiential concepts that offer stronger value propositions to consumers, as well as formats that improve productivity, such as self-checkout and unmanned stores.

3. In addition, eligible hawkers and heartland F&B businesses which participate in the CDC Vouchers Scheme can benefit from increased patronage from residents using their CDC vouchers and the one-off commemorative SG60 vouchers.