Retail grouping seeks landlords' help for tenants hit by virus outbreak
Singapore
THE Singapore Retailers Association (SRA) is calling on landlords to support their retail tenants in this difficult time, through measures such as rent waivers, rent rebates, and allowing shorter hours of operation.
"A lot of retailers are feeling the pinch and they cannot take it," SRA president R Dhinakaran told The Business Times. Several SRA members have already said that they are unable to pay rent due to the fall in sales.
Collecting data from its members on the impact of the Covid-19 outbreak, the SRA found that sales have fallen by 50 per cent on average, and up to 80 per cent for retailers in tourist spots.
After a council meeting last week, SRA sent feedback to the government, requesting for help such as jobs credit, suspension of foreign worker levies for at least six months, and rental aid where possible, said Mr Dhinakaran, who is managing director of Jay Gee Melwani Group.
Government agencies such as the Housing Board and JTC could take the lead in waiving rent, he said. SRA is also working with government agencies to appeal to commercial landlords for rent support.
Noting that CapitaLand is allowing shorter store hours and Jewel Changi Airport is offering a 50 per cent rental rebate, he hoped more landlords would follow suit. Rental support is necessary to ensure that tenants are not forced to fold, he said: "Cashflow is very bad in retail at the moment."
The number of firms unable to pay rent will only rise as the outbreak persists, he added. To contain wage costs, retailers have been reducing shifts and asking staff to take leave. But rent remains the biggest cost pressure, said Mr Dhinakaran.
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