Monday, December 30, 2013

JTC equivalent for retail shops?

I think what is very lacking in Singapore now is a JTC equivalent for retail shops. Many of the retail shops are now increasingly being driven out of their shop space due to the ever increasing rents charged by the landowners.

For some retailers, the shop rent could increase as much as 100% per renewal of contract. With this kind of rental increase, how could any small retailers survive, let alone try to expand their business and handle the manpower issue?

In short, they are unable to. That is why it is of no surprise that few Singaporeans dare to venture out to setup their own business due to this insane high rental cost. They cannot afford the capital to seed their venture.

If the retail shop rentals can be controlled, similarly to how JTC charges for the office/warehouse JTC buildings, there might be hope for the Singaporeans who hope to setup their own retail shops. Otherwise, I think entrepreneurship will always take a backseat in Singapore.

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