Trial reopening for nightspots, but not many will be partying

Singapore

A "SMALL number" of nightlife establishments will be allowed to resume business as early as next month under trials, while those that decide to pivot or exit the industry altogether will receive financial assistance, said the Ministry of Trade and Industry (MTI) and the Ministry of Home Affairs (MHA) on Friday.

The ministries said in a joint statement: "The pilots aim to establish the viability and robustness of stringent safe management measures that will be required to be put in place, and the nightlife industry's ability to comply with them, before the government considers allowing any further resumption of nightlife businesses."

The trial for pubs and bars will start by December and last for two months.

Karaoke lounges and nightclubs under the pilot initiative will reopen by January. They are given more time to prepare as they must ensure that all customers entering their premises have tested negative for Covid-19 in the 24 hours before.

The authorities told The Business Times that the pilot is expected to start with the participation of up to 10 bars and pubs, 10 karaoke establishments and five nightclubs. But the actual number of establishments that may resume under the pilot will depend on the industry's response and the suitability of the applications.

A NEWSLETTER FOR YOU

Friday, 8.30 am

SGSME

Get updates on Singapore's SME community, along with profiles, news and tips.

Sign Up

Establishments will first be nominated by the Singapore Nightlife Business Association (SNBA) and the Singapore Entertainment Affiliation (SEA) respectively, and then assessed by the two ministries.

MTI and MHA will consider the establishments' proposals to implement the prescribed safe-management measures, and their profile or type of business to "ensure diversity" among the establishments participating in the pilot. They may also consider establishments with "economic or social significance and which are strongly supported by other government agencies", such as the Singapore Tourism Board.

Some operators said that the chance to reopen even for a while may have come a tad too late, with industry peers already pivoting or calling it quits.

Christopher Ng, business development manager at Party World KTV, said: "Unfortunately, what I hear from my counterparts is that about half of them are going to pivot. So, this has missed the window slightly. "But we also understand the government is doing all it can to prevent a second lockdown, which won't do anybody good."

Likewise, Simon Sim, a committee member at SEA, said that "most karaoke lounges" have already chosen to move into new businesses. Mr Sim himself has closed his Karaoke Times KTV outlet at City Square Mall and convert his three pubs to food establishments.

Andrew Li, chief executive at Zouk Group, which has found new uses for its dance floor, said the timing of the trials "does not have a huge impact on us as all our pivots utilise our spaces during non-entertainment hours, so we can transition the spaces for these pilots seamlessly".

About 60 bars and pubs have engaged the SNBA to find out how to pivot into new activities, said its president, Joseph Ong.

But he said that nightlife operators should not look at the trials as an option to be weighed against pivoting or shutting down, given the small number that will be chosen and the strict safe-management measures they will have to comply with. Participating establishments will carry the weight of the entire industry, he added. "It's not a comfortable position to be in."

He hopes that more companies, particularly, micro to small players, will consider pivoting instead, in light of the new grants announced by the government on Friday.

Nightlife operators that choose to pivot can now seek up to S$50,000 from Enterprise Singapore to defray costs. Those exiting the industry are eligible for an ex-gratia payment of S$30,000.

MTI and MHA have said that even if the trials "turn out well", it is expected that the nightlife industry will not resume operations for a while more.

Those in the beleaguered nightlife industry, shut since Singapore's "circuit breaker" in April, will have to review their options. They will be eligible only for either one of the financial support packages. And if they receive either of them, they will be barred from the pilot nor any subsequent resumption of nightlife operations for at least a year. Those in the trials will be ineligible for the support packages.

The industry is said to employ some 50,000 people. SEA and SNBA combined have at least 500 members.