CNA938 Rewind - Is it too easy to be a home-based F&B business?
Singapore has launched an enhanced technical assistance programme to support Timor-Leste's integration into ASEAN, reinforcing its commitment to regional cooperation. Prime Minister Lawrence Wong announced this during an official four-day visit of Timor-Leste's Prime Minister, Xanana Gusmão, to Singapore – it's been over a decade since his first in the role. Lance Alexander and Daniel Martin find out more from Dr Mustafa Izzuddin, Senior International Affairs Analyst, Solaris.
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CNA
25 minutes ago
- CNA
Bike-sharing is making a quiet comeback – but will Singaporeans give it a second chance?
SINGAPORE: A cautious revival is underway in Singapore's bike-sharing scene, as operators expand their fleet while working to regain public trust lost in the chaos of the industry's early days. On Jul 1, Chinese company HelloRide increased its fleet here from 15,000 to 20,000 bicycles. Local firm Anywheel, which has been gradually scaling up its presence since 2022, operates another 35,000 bicycles. Singapore's total bike-share fleet now stands at 55,000, up from 36,000 three years ago. Both firms told CNA this expansion is more than just a numbers game. It is part of a broader vision to make bike-sharing a reliable, even habitual, part of daily transportation in Singapore. 'For HelloRide specifically, we want to grow beyond a utility – into a brand that Singaporeans associate with freedom, health and modern city living,' said its general manager Hayden Choo. Anywheel founder Htay Aung added: 'Our vision is to grow in Singapore in such a way that … when you go from point A to B, regardless of whether you use us, at least our name will come to your mind.' These aspirations come with an awareness of past missteps. Singapore's bike-sharing boom in 2018 saw the market flooded with more than 200,000 bikes operated by as many as seven different firms. But the rapid growth in the absence of regulations resulted in public frustration over indiscriminate parking, damaged bicycles and abandoned bikes clogging paths. Legislation was subsequently introduced to manage these problems, but this led to the closure of several operators, some of whom exited the market with debts owed to vendors, retrenched staff and without returning user deposits. The sustainability of the industry was cast into question more recently, when SG Bike – once a key player – announced in March 2024 that it was exiting the market after nearly seven years. Mr Htay said the bike-sharing industry is now in its 'second run' – a correction period where companies have to tread carefully. 'We have to be very careful to slowly gain back the confidence of Singapore users,' he said. Mr Choo agreed, adding: 'The other key learning is that trust – with users, with government – this takes time to build but is easily lost.' SLOW, CALIBRATED EXPANSION Both Anywheel and HelloRide are taking a more measured approach to growth, focusing on getting things right this time round. Anywheel is currently holding back from expanding its fleet further, choosing instead to focus on replacing ageing bicycles to improve user experience. When the older fleet is fully replaced, the company will apply to expand its fleet, Mr Htay said. HelloRide's Mr Choo said one of the biggest lessons from the industry's early days was that "scale without control is a recipe for collapse". 'The early wave emphasised growth at all costs – we've learned instead to value sustainable unit economics, operational efficiency and regulatory compliance.' The company began operations in Singapore in 2022 with 1,000 bikes and has expanded in phases – reaching 10,000 in 2023, adding 5,000 more in October last year and another 5,000 this year. The Land Transport Authority (LTA), which approves bike-share fleet expansions, told CNA that its decision to allow HelloRide's latest increase was based on several factors, including the company's track record in managing indiscriminate parking and its efforts to educate users on proper parking behaviour. The authority said it also takes into account the overall bike-sharing fleet size in Singapore, demand for the services and the availability of parking infrastructure when reviewing expansion applications by bike-sharing companies. 'We will continue to closely monitor the supply and demand of the deployed fleets, while ensuring all operators continue to manage disamenities,' an LTA spokesperson said. Whether the bike-sharing business is financially viable remains a challenge for operators. For example, while residential deployment increases accessibility for users, it often makes little business sense. Bicycles placed deep in neighbourhoods tend to generate less ridership and revenue. 'You need an operator to sacrifice their revenue and ridership, to dedicate part of their fleet to do that,' said Mr Htay. Still, Anywheel has taken this step deliberately in the hopes of shifting commuter behaviour over time. For instance, the company has placed bikes in Orchard and Tanglin residential neighbourhoods, where most residents typically drive cars. Though initial ridership was poor, usage increased significantly after six months, Mr Htay said. 'Now, ridership is very high. Even in areas where residents may have two to three cars, with consistent deployment, service and availability, people will pick it up,' he said, adding that Anywheel has been profitable since 2023. Similarly, HelloRide has observed that ridership in heartland areas has tripled compared to leisure hotspots like parks and tourist attractions. 'Riders see it as a viable replacement for first-and-last mile transport … as it might be more cooling in the early mornings and evenings,' said Mr Choo. Mr Htay said Anywheel sees serving residential areas where last-mile transport is a pain point as a duty. 'LTA gave us a bigger licence, so we have the responsibility to serve the heartland from day one,' he said. THE USER EXPERIENCE GAP Despite these efforts, some users still find that locating a bike when they need one remains a hit-and-miss affair. Cleaning supervisor Ng Gim Beng, who prefers to use bike-sharing rather than feeder bus services to get around his neighbourhood, said availability remains an issue near his home in Yishun. 'Especially at the HDB blocks, there isn't a bike, and I have to go and find one through the app,' the 68-year-old said. Fellow Yishun resident and student Naurah Usyazwani, 19, agreed that finding an available bike is "not that easy" unless it is during off-peak hours. 'At any one spot, there needs to be two to three bikes, but it's sometimes empty,' she said. 'When people want to go from their home to the MRT, it's very hard to find a bike.' THE FUTURE OF BIKE-SHARING Bike-sharing has the potential to fill a gap in Singapore's transport system, analysts said. This is helped by Singapore's investment in cycling infrastructure – now over 730km of dedicated paths and park connectors, with plans to reach 1,300km by 2030. 'By expanding the fleet and making cycling more accessible, bike-share operators could help to accelerate this process,' said Dr Che Maohao from the Singapore University of Social Sciences (SUSS), whose research interests include non-motorised transportation. However, challenges persist that could hinder expansion. For example, deploying bikes in residential areas may remain an unprofitable venture, said transport analyst Walter Theseira. The associate professor of economics at SUSS pointed out that the allocation of bicycles is a problem in neighbourhoods. 'Many have talked about first- and last-mile connectivity using dockless bikes between, say, the MRT station and the home or factory or office,' he said. 'That sounds great in theory, but what it means in practice is a lot of one-way rentals that end up with bikes at a factory or office some distance from the station.' These bikes are likely to be under-utilised during the day, but if they are used or relocated, they will no longer be available to the original user at the end of the day. Deploying the bicycles in recreational areas – where bikes are circulated continuously – supports higher utilisation and makes better business sense, Assoc Prof Theseira said. Operators also face regulatory hurdles. New rules banning bicycles from footpaths next to cycling lanes have added uncertainty for riders. 'With the stricter policies on where you can ride, chances are that if I'm a user, I'd be quite worried,' said urban mobility consultant Tham Chen Munn. 'There's this uncertainty, (over whether) I will get caught (if I) go on the wrong path.' This could dampen interest in bike-sharing, he said. 'If we are forever arguing over who to ban and where we can use it, it doesn't make it sexy to even try out.' The analysts highlighted the potential for e-bikes to drive the next phase of growth, with examples from cities like London, where rental e-bikes have fuelled a surge in cycling. Assoc Prof Theseira said electric mobility offers a sweat-free commute and would suit Singapore's climate better. Rental e-bikes opens up the possibility to not just first- and last-mile transport, but that of the 'first five and last five miles', said Mr Tham. Still, concerns around pedestrian safety persist, and there remains a 'lack of a proper system to ensure motorists and PMD users can coexist', said Assoc Prof Theseira. But Mr Tham remains optimistic about the future of bike-sharing. "We already put so much money into the infrastructure," he said, "The question is whether we can efficiently use it while embracing the enhancements in technology."
CNA
25 minutes ago
- CNA
Commentary: India and ASEAN are growing apart. Blame tariffs
NEW DELHI: It's still far from clear what US President Donald Trump's tariffs will eventually look like. But the pressures they will put on stable trading relationships – even those that don't directly involve the US – are already visible. Ties between India and the 10-member Association of Southeast Asian Nations (ASEAN) are already fraying: They're being pushed into different camps, and the free trade agreement they signed in 2010 could become an unexpected victim of the turmoil. Trump might be the immediate cause of this rift, but, as always, China's massive manufacturing overcapacity is at the heart of the problem. Even if no country knows what rates they or others will face, everyone can be reasonably certain that Beijing's tariffs will be the highest of all. Unfortunately, this also means that there's a big incentive to help Beijing game the system enough that we all trust each other less. GAINING FROM CHINA'S OVERCAPACITY Many Asian countries are reasonably pleased at the thought that duties on their exports will be lower than on those out of China: They've all been searching for a way to regain a sliver of competitiveness, and this might help. But the same nations are also a little scared. They fear a flood of underpriced Chinese goods, once meant for the US, will inundate their fledgling manufacturing sectors. In fact, that's already happening to an extent, and policymakers are responding. Vietnam has introduced anti-dumping tariffs on certain kinds of Chinese steel; Indonesia has banned direct-shipping e-commerce apps like Temu. But, for some, there's also the tempting possibility that China's overcapacity can be turned from an enemy into an ally. Any country that remains integrated both with China and those that are putting up tariff walls could, if it wanted, become a location for the trans-shipment of goods. Instead of paying the higher China levies, importers would pay lower ones imposed on the third country – and share a bit of the take with local partners. Tariff arbitrage could become as profitable in the future as interest rate arbitrage is today. The more countries that impose anti-dumping duties on China, the more money the successful trans-shipper would make. The US, for one, is already very concerned that parts of ASEAN might take this route – which is why Trump's trade deal with Vietnam included a clause that any goods suspected of being trans-shipped would pay double tariffs. CLOSED-OFF BLOCS A NIGHTMARE FOR INDIA For countries like India, it's an even greater fear. India's commerce minister caused a bit of a stir recently when he described ASEAN as 'China's B-team'. That was certainly impolitic. But, perhaps, not entirely unjustified. New Delhi has been trying to update its free trade agreement with ASEAN for a while. Its particular focus has been to tighten rules-of-origin requirements – the way in which you ensure that a free trade agreement only benefits local producers in both countries, not those shipping goods that originate elsewhere. Indian officials feel that ASEAN has been going slow on these discussions. Meanwhile, news broke in May that the bloc had expanded the scope of its parallel FTA with China. They achieved that in double-quick time – negotiations only started in November 2022 – which raised a few eyebrows in New Delhi. Some in India, clearly including its commerce minister, now seem to think that tariff-free trade with Southeast Asia is the same as opening your market to China. That isn't true – or, at any rate, not yet. But the fact is that member states simply aren't doing enough to reassure their other trading partners, including India. It would be a nightmare for most countries, including India, if closed-off blocs were to replace today's open trading system. Yet Trump's actions, when combined with China's overcapacity, are taking us there. Any country that wants to trade with both sides of the divide – which, clearly, many in Southeast Asia would prefer – will also need to be able to be very transparent about the goods it is exporting, and how much value has been added domestically. In other words, it's ASEAN's move: They will have to step up and give most of their trading partners, not just India and the US, a clearer view into their supply chains. The US is clearly worried that some countries will evade its tariffs. Those concerns will be shared, especially by India. New Delhi seems to believe that, if world trade blocs form, then ASEAN has already chosen its side – and it won't be the one India picks. Trade's impossible without trust, and these two partners will have to work to rebuild it.
CNA
7 hours ago
- CNA
Asia First - Wed 16 Jul 2025
02:28:20 Min From the opening bell across markets in Southeast Asia and China, to the biggest business interviews and top financial stories, tune in to Asia First to kick-start your business day.
