Latest News Headlines

Businesses call for more rental reduction, wage support and loan moratoriums amid tightened Covid-19 measures, Economy News & Top Stories


SINGAPORE – Several enterprise associations have known as for assist in areas similar to rental reduction, wage support and loan moratoriums as Singapore tightens measures amid a resurgence in Covid-19 infections in the neighborhood.

The Alliance of Frontline Business Trade Associations on Wednesday (July 21) outlined these three means by which it seeks support to make sure the sustainability of companies within the retail, meals and beverage (F&B) and providers sectors.

It appealed for landlords to supply rental rebates commensurate with the income impression when the tighter restrictions are imposed. It additionally seeks wage support from the Government to assist companies hold as many roles for Singaporeans as potential.

Lastly, it requested for financial institution loan principal moratoriums to be prolonged to June 2022.

The assertion from the alliance got here a day after Singapore introduced that it’s going to revert to section two (heightened alert) from Thursday until Aug 18.

Under these measures, eating in at meals and beverage institutions will likely be banned, with operators allowed to supply solely takeaway and supply providers.

Operating capability for malls will likely be reduce, from a most occupancy restrict of 10 sq m of gross flooring space per particular person to 16 sq m per particular person.

A support bundle for companies and employees affected by the heightened alert section from Thursday is within the works and particulars will likely be introduced quickly, Finance Minister Lawrence Wong mentioned in a Facebook submit on Wednesday. 

The alliance consists of the Association of Small and Medium Enterprises (Asme), the Restaurant Association of Singapore (RAS), Singapore Retailers Association (SRA) and Singapore Tenants United for Fairness (SGTUFF).

At a digital press convention on Wednesday, SGTUFF chairman Terence Yow mentioned that there was “very sporadic and selective help given by landlords”, and that the final time vital assist was prolonged was final yr when it was mandated by the Government.

“The vast majority of front-line businesses have not received significant support from landlords for our rentals, the main rental help (is coming) from the Government and it is coming next month,” he mentioned.

RAS president Andrew Kwan famous the roller-coaster trip which the F&B trade has been by, with varied modifications to eating in capability and allowances over the previous 16 months.

Asked if the most recent measures might sink the trade, he mentioned that like different sectors, many operators are at some extent the place their reserves have been absolutely exhausted.

“If the industry is (left) to its own devices, I think the reading is that many would face a shutdown, and that would not be good overall because not only does the company go down, it carries along with it all the employees as well.”

Acknowledging that there have already been casualties within the trade regardless of varied support measures given out beforehand, Mr Kwan mentioned that there’s prone to be consolidation within the trade, and there’s a want for a brand new enterprise mannequin which takes into consideration the teachings learnt over the past yr and a half.

SRA president R. Dhinakaran, who’s managing director of trend distributor Jay Gee Melwani Group, additionally known as for increased wage support by the Jobs Support Scheme throughout this upcoming heightened alert section, in addition to international employee levy waivers to assist cushion manpower prices.

The retailers’ affiliation, in a separate assertion on Facebook, requested for international employee levies to be waived till the tip of 2021 and for a minimal of fifty per cent of hire support from landlords to be mandated.

Support for companies for the interval until Aug 18 is predicted to take reference from the support supplied within the earlier section two (heightened alert) interval from May 16 to June 13.

Small and medium-sized enterprises and non-profit organisations that are tenants in privately owned industrial properties certified for a direct, half-month rental reduction money payout for the heightened alert interval in May. The reduction will likely be disbursed from mid-August.

Qualifying tenants in government-owned industrial properties will obtain one month of rental reduction for the May 16 to June 13 interval.

Some main landlords, similar to CapitaLand and City Developments Limited, provided varied support measures in the course of the interval, together with rental rebates, delaying hire funds and waiving platform charges.

Affected companies additionally obtained as much as 50 per cent wage support beneath the Jobs Support Scheme for the interval.

Furniture retailer Scanteak, which has 11 retail shops, echoed the call for more support, noting that its enterprise would inevitably take successful, with decrease footfall anticipated throughout this heightened alert interval.

Chief government Jamie Lim mentioned that two of its landlords had supplied further rental reduction in the course of the heightened alert section in May. But they had been exceptions fairly than the norm primarily based on the experiences of most retail tenants, with most landlords opting to see what measures the Government implements, she added.

Scanteak has been planning to broaden its bodily footprint, however these plans are at the moment in flux and will likely be depend upon whether or not they can discover a appropriate place on the proper value, Ms Lim mentioned.

Mr Frank Shen, co-founder of seafood bar Laut, mentioned that the unit’s landlord supplied a one-month delay on hire cost in May in the course of the heightened alert section. 

It is in talks with its landlord and making an attempt to see what concessions may be put in place, however plans are depending on authorities bulletins, mentioned Mr Shen, who can be the co-founder of craft beer bar American Taproom.

His institutions noticed a couple of 65 per cent fall in income in the course of the heightened alert interval in May, though it was taking supply orders.

Mr Shen mentioned that the heightened alert section is “killing a lot of F&B venues”, which have largely been cautious to adjust to secure distancing measures.

“Every restaurant has different concepts. For both my restaurants, we focus on bringing the experience to our diners. No matter what we do for deliver and takeaway, food will never taste the same as dine-in; reheating doesn’t work for all food,” Mr Shen mentioned.

In a press release, landlord City Developments Limited (CDL) mentioned it can proceed to support tenants as Singapore re-enters section two (heightened alert), in areas similar to rental, operations and advertising.

It may also proceed to supply hire restructuring to chose tenants in addition to hire cost flexibility for these going through extreme money circulation points, it mentioned. 

CDL mentioned it had supplied focused rental support to tenants, together with waivers for these which needed to shut and couldn’t function on-line, in the course of the earlier heightened alert section in May to Jun. Close to 90 per cent of its retail tenants have obtained rental help, it added.

A spokesman for CapitaLand mentioned it could present focused help similar to rental restructuring or waivers for tenants, in addition to advertising support to assist tenants proceed gross sales by its digital platforms. 

It can be extending the grace interval for drivers visiting its malls to half-hour from Thursday, to facilitate meals supply orders. 

Comments are closed, but trackbacks and pingbacks are open.