Can rent control protect small businesses?

[SINGAPORE] Last year, the number of food and beverage (F&B) business closures in Singapore hit a 20-year high at 3,047, and it is showing no signs of slowing. Average monthly closures in the first quarter this year are already above 300.

In recent weeks, several of them have made the news: Flor Patisserie is closing its Siglap outlet after a 57 per cent hike in rent; the Cat Cafe at The Rail Mall is bowing out after facing a 50 per cent rental increase.

Such eye-watering increases raise the question of how much rent is too much, and whether the government needs to intervene – even if it has espoused the merits of a free market for years.