3 days ago
- Business
- Independent Singapore
A sustainable retail sector needs landlords and tenants to succeed together: Singapore Tenants United for Fairness (SGTUFF)
SINGAPORE: A walk through any heartland mall or reading the news headlines means you'll spot them — 'Closing Down' signs, clearance racks, clearance sales or entire shopfronts shuttered and dark. Or you'll see on social media the news of another restaurant, bakery or business closing due to increased rent.
Post-COVID, it's become a familiar sight for many Singaporeans. Beloved eateries, quirky boutiques, and long-time service shops that once defined a neighbourhood's identity are quietly disappearing. Why? All too often, they are victims of a rental market that's pricing them out.
Terence Yow has seen plenty of this. Now, as the Managing Director of Singapore Tenants United for Fairness (SGTUFF), he's pulled together a growing band of business owners determined to keep Singapore's small shops and eateries alive.
'Retail rents have gone up by 20–30% since COVID,' he says. 'Meanwhile, people are spending less, costs are rising, and tenants are being priced out of the very spaces they helped bring to life.' From a WhatsApp group to a national voice
SGTUFF didn't start large. Its origin is found in early 2020, in the thick of the pandemic, with just a handful of shop owners chatting on WhatsApp.
'It started with 10 to 20 of us,' Yow recalls. 'Sales had collapsed, but we still had to pay rent and staff salaries. We knew trouble was coming.'
That small group quickly swelled to more than a thousand members at the height of the COVID crisis. What began as mutual support turned into coordinated action that saw lobbying for government rental relief and job support schemes. This later helped shape the Code of Conduct for Leasing Retail Premises, which became law in 2024. See also Dr Lee Wei Ling denies supporting Chee Soon Juan
'It was a big milestone,' Yow says. 'But while the Code makes leases fairer in terms of clauses, it doesn't tackle the main problem — rent itself.'
Singapore currently sees pressure on small businesses that's not just about rent. 'It's a triple crunch,' Yow explains. Revenue – Inflation is eroding local spending power, and tourists are cautious. Manpower – Wages are going up with the Progressive Wage Model, but manpower shortages persist. Operating Costs – Rent, utilities, logistics and raw materials are all up 20–30% since COVID.
When all of this combines, these forces some business owners to make painful decisions. It's a matter of cutting staff or raising prices. And in the worst case? Close the business altogether. 'For many, it's a daily struggle just to stay afloat,' says Yow. No rent control — but fair renewals
Some people think SGTUFF is pushing for rent control, but Yow is clear: 'We don't want rent control. We support free negotiation of initial leases. But for renewals, peg the increase to something fair and predictable, like inflation or GDP.'
The aim? Protect stable, established businesses in Singapore from sudden and extreme hikes. 'If you've poured money and effort into building your shop, you shouldn't face a sudden 30% or 50% rent jump just to stay,' he says.
Countries like Sweden, Japan and Korea already have similar systems. 'We can study their models and adapt them for Singapore,' Yow suggests. But Yow also notes it's not just a problem for shop owners. It's something that affects everyone.
'When small businesses die, you lose more than just a shop,' Yow says. 'You lose the flavour of the neighbourhood, the jobs they provide, the unique experiences they bring. And when rent drives prices up, it's the consumer who ends up paying.'
He's noticed more Singaporeans heading to Johor or overseas for shopping and dining. 'In Johor, Korea, Japan — you get better value. If we don't fix core costs here, our malls will keep losing footfall.' Welcoming competition, protecting locals, balancing REITs
Foreign brands, especially from China, have also been expanding aggressively in Singapore. While some have criticised them for squeezing out local businesses, Yow doesn't see them as the enemy. 'We're not against foreign brands. We just want local SMEs to have a fair chance to compete,' he says.
For him, that means tackling the basics. To Yow, it's about balancing out the rent, manpower, utilities, and logistics, so that homegrown businesses can hold their own.
To Yow, Singapore needs to think big and bold about its retail spaces. For one, he reckons that not only Orchard Road, but also the heartlands, need a major rethink.
'Orchard Road used to be the beating heart of shopping here. Now, many Singaporeans skip it altogether,' he says. 'We need to bring back local concepts, create experiences, and make rent more reasonable so new ideas can take root.'
Among his ideas are reserving mall space for SMEs, offering special leases to local brands, and creating 'SME districts' like the vibrant small-business zones in Tokyo or Seoul. He notes: 'We should make it easier for people to try, fail, and try again. That's how entrepreneurship grows.'
But this also needs to factor in the economics of real estate in Singapore. Many malls are owned by real estate investment trusts (REITs), which need to deliver strong returns to investors.
'We get that REITs want profits,' Yow says. 'But short-term rent maximisation can hurt them in the long run if it drives tenants out.'
His solution: variable rent models, where the base rent is modest and a portion is tied to the tenant's sales. 'When landlords have skin in the game, they'll work to bring in footfall. It becomes a true partnership.' Fair terms, collaborative relationships
The 2024 Code of Conduct was a step forward for tenants in Singapore. But Yow says there's more to do. 'It's great for setting fair terms, but to really level the playing field, we need rental renewal caps, better market data, and fair exit clauses for tenants in distress.'
He also calls for a public database of commercial rents, like the URA's residential property price records. 'Transparency helps everyone negotiate more fairly.'
When it comes down to the landlord-tenant relationship in Singapore, Yow says that a dynamic often framed as adversarial can be transformed into one of partnership. The goal is not to pit tenants against landlords.
'We don't see landlords as enemies. We're in a symbiotic relationship. If tenants fail, landlords eventually suffer too,' he says. 'The healthiest retail ecosystem is one where both succeed together.'
That, he believes, will not only keep small businesses alive, but also make Singapore's streets and malls vibrant again. 'We want a city where you can find that unique café or quirky store, where entrepreneurs have a real shot — not just the chains with the deepest pockets.
