Asia First - Fri 6 Jun 2025
02:27:55 Min
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Independent Singapore
3 hours ago
- Independent Singapore
‘Make space for Singaporeans to dream': Business struggles spark debate featuring Calvin Cheng over rent, manpower, and the future of local business
SINGAPORE: A recent Facebook post by businessman and former Nominated Member of Parliament Calvin Cheng has stirred heated conversation online, after he suggested that rising rents are not the primary cause of Singapore's F&B crisis—and that the government should resist interfering in the free market, especially by imposing rental controls or mandating support for local entrepreneurs. Cheng didn't shy away from admitting that the closures have been heartbreaking—familiar neighbourhood hangouts, late-night bars where friends gathered, even family-run cafes that felt like home, have all folded one after another. Yet he urged us to pause before pointing fingers at landlords. 'Most mall spaces are still taken,' he reminded readers, suggesting that behind every lease negotiation is a landlord weighing risks—sometimes betting on higher rents only to discover too late that demand has shifted. In his view, it's not a matter of landlords callously letting spaces sit empty; it's a delicate, often agonising decision that can leave both tenant and landlord worse off if the timing or market dynamics don't line up. 'It is simplistic to just blame rentals,' he wrote. 'Most of the time, landlords also take a gamble during renewal… If they make the wrong decision, they may end up with a lower rent.' Cheng also claimed that many local F&B entrepreneurs overestimate their financial capacity and falter due to inexperience, rather than being unfairly priced out. Manpower shortages and government policy While defending the market's self-regulation on rents, Cheng was more critical of the government's stance on manpower quotas, especially in the service sector. He asserted that tight restrictions on hiring foreign workers could have led to increased labour costs and service inefficiencies. See also Stories you might've missed, June 16 'I am often served by young, inexperienced and/or disinterested local service staff who never see F&B as a long-term career,' he said. 'If the government really wants to do something, they should relax the quotas on foreign manpower.' Cheng concluded that excessive government intervention in the market often leads to unintended consequences: 'When local entrepreneurs shut down, everyone loses their livelihoods anyway.' Yet Cheng's criticism of young local workers in the F&B sector has struck a raw nerve among many Singaporeans, especially youth and their families, who see part-time service jobs not as careers, but as lifelines. In a country where the cost of living continues to rise sharply—from transport fares to food prices and education costs—40% of polytechnic and university students take up part-time work at cafés, fast-food chains, or bubble tea outlets simply to make ends meet. For some, it's pocket money. For others, it's helping to pay for tuition fees, rent, or to lighten the financial burden on their families. To many of these young workers, the implication that they are 'disinterested' or 'inexperienced' misses the point. The service roles they hold are rarely career pathways—they're a means of economic and social survival in the city. For every customer served with a weary expression, there may be a backstory of exams, caregiving duties, or savings goals stretched thin by the realities of urban school life. Backlash from entrepreneurs and advocates His remarks were met with swift rebuttals from industry figures and local entrepreneurs, many of whom argue that the state has a responsibility to protect small businesses in the face of mounting structural disadvantages. Credit: Calvin Cheng Facebook Wally Tham, owner of the social impact marketing agency Big Red Button, issued one of the most widely resonant rebuttals. 'If the government doesn't protect small local businesses, and Singapore cannot produce large enterprises, we won't have a local culture of business,' Tham wrote. 'Imagine all restaurants only serving Mala offerings and all services imported from the West.' Tham's emphasis on preserving space for uniquely Singaporean business voices—both literal and symbolic—was echoed by other commenters who see rental costs as more than just an economic issue. Cheng, however, dismissed this framing. 'Business is not a culture. Business is about making money,' he replied. 'Good service is a business proposition… Culture is just a misnomer.'hmm. The emotional economics of leasing In a separate comment, Kina Huang, who identified herself as having three decades of experience working with landlords, shared a more human-centred critique. She called attention to what she described as a growing ruthlessness in commercial leasing practices, even toward long-standing, loyal tenants. Credit: Calvin Cheng Facebook 'If a business has been around for more than 15 years, they must have been doing something right. And if they have to close, something external must have gone terribly wrong,' she said. See also MOM: 3 workplace fatalities in 2020 to date 'Lease renewal should be renamed Lease Increment Exercise,' she concluded her comment. Huang recounted how only one leasing agent she encountered in 30 years showed genuine empathy toward tenants, suggesting that most decisions in the space are coldly transactional. A bigger question: What kind of country do we want? Do we want a country where only the biggest players can afford the rent and survive, or do we want to make sure there's still breathing room for the smaller spots that give our neighbourhoods personality? It's tempting to let free-market forces decide—after all, high-profile brands bring in foreign investments and big leases fuel massive growth. But when a local hawker or startup can't renew their lease because the rent jumps too much, it isn't just a business closing: it's one less place where friends meet for kopi, one less corner of our community. If the sheer cost of business keeps squeezing smaller operators, soon there won't be any local names left on the storefronts—just global logos. The real test is whether we can find a way to let big and small businesses coexist, so that big brands, aspiring and small entrepreneurs feel at home here. That balance can shape what Singapore looks and feels like in the years ahead.
CNA
3 hours ago
- CNA
Japan trade negotiator says progress made in US tariff talks
TOKYO: Japan had made some progress in a fifth round of trade talks with United States officials aimed at ending tariffs that are h urting Japan's economy, Tokyo's chief tariff negotiator said. "Tariffs have already been imposed on autos, auto parts, steel and aluminum, and some of them have doubled to 50 per cent along with 10 per cent general tariff. These are causing daily losses to Japan's economy," Ryosei Akazawa, said in Washington on Friday (June 6) after talks with officials, including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick. Akazawa declined to say what progress they had made. The latest round of talks may be the last in-person meeting between senior Japanese and US officials before the Group of Seven (G7) leaders summit that starts on June 15, where US President Donald Trump is expected to meet Japanese Prime Minister Shigeru Ishiba. Japan also faces a 24 per cent tariff rate starting in July unless it can negotiate a deal with Washington. "We want an agreement as soon as possible. The G7 summit is on our radar, and if our leaders meet, we want to show what progress has been made," Akazawa said. "Still we must balance urgency with a need to guard our national interests," he added. Last month Japan's trade negotiator said US defence equipment purchases, shipbuilding technology collaboration, a revision of automobile import standards and an increase in agricultural imports could be bargaining chips in tariff talks. In a bid to reach an agreement with the US, Japan is also proposing a mechanism to reduce the auto tariff rate based on how much countries contribute to the US auto industry, the Asahi newspaper reported on Friday.
CNA
5 hours ago
- CNA
US, China to hold trade talks on Jun 9 in London, Trump says
WASHINGTON: Three of President Donald Trump's top aides will face their Chinese counterparts in London on Monday (Jun 9) for talks to resolve a trade dispute between the world's two largest economies that has kept global markets on edge. US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer will represent Washington in the talks, said Trump, who announced the talks in a post on his Truth Social platform but provided no more details. It was not immediately clear who would represent China. The Chinese embassy in Washington did not immediately respond to a request for comment. The White House did not immediately respond to a request for more details. "The meeting should go very well," Trump wrote. Trump also said on Friday that Chinese President Xi Jinping had agreed to restart the flow of rare earth minerals and magnets to the US. Asked directly by a reporter aboard Air Force One whether Xi had agreed to do so, Trump replied: "Yes, he did." He added: "We're very far advanced on the China deal. The scheduling of the meeting comes a day after Trump spoke to Chinese President Xi Jinping in a rare leader-to-leader call amid weeks of brewing trade tensions and a battle over critical minerals. Trump and Xi agreed to visit one another and asked their staffs to hold talks in the meantime. Both countries are under pressure to relieve tensions, with the global economy under pressure over Chinese control over the rare earth mineral exports of which it is the dominant producer and investors more broadly anxious about Trump's wider effort to impose tariffs on goods from most US trading partners. China, meanwhile, has seen its own supply of key US imports like chip-design software and nuclear plant parts curtailed. The countries struck a 90-day deal on May 12 in Geneva to roll back some of the triple-digit, tit-for-tat tariffs they had placed on each other since Trump's January inauguration. That preliminary deal sparked a global relief rally in stock markets, and US indexes that had been in or near bear market levels have recouped the lion's share of their losses. The S&P 500 stock index, which at its lowest point in early April was down nearly 18 percent after Trump unveiled his sweeping "Liberation Day" tariffs on goods from across the globe, is now only about 2 percent below its record high from mid-February. The final third of that rally followed the US-China truce struck in Geneva. Still, that temporary deal did not address broader concerns that strain the bilateral relationship, from the illicit fentanyl trade to the status of democratically governed Taiwan and US complaints about China's state-dominated, export-driven economic model. Since returning to the White House in January, Trump has repeatedly threatened an array of punitive measures on trading partners, only to revoke some of them at the last minute. The on-again, off-again approach has baffled world leaders and spooked business executives. Beijing sees mineral exports as a source of leverage, halting those exports could put domestic political pressure on the Republican US president if economic growth sags because companies cannot make mineral-powered products. In recent years, the United States has identified China as its top geopolitical rival and the only country in the world able to challenge the US economically and militarily.
