From July 22 onwards, Singapore will once again head back into Phase 2 (heightened alert) (Phase 2ha), just shortly after the previously Phase 2ha progressed into Phase 3 last month. This was due to recent spike in Covid-19 cases within the community, with several clusters emerging too. As at July 20, there were 195 cases in Singapore, with 182 locally transmitted cases.
After 16 months of a roller coaster pandemic crisis, businesses who have managed to survive thus far are burdened by the loss of revenue and their ability to sustain jobs and afford rentals, the two largest cost components of businesses in retail, F&B and services.
In order to have some semblance of credible retail, F&B and services business sectors left after this crisis, the alliance of frontline business trade associations is appealing to all Singaporeans, landlords and the government to work together for Singapore to emerge stronger.
The Alliance of Frontline Business Trade Associations is made up of the Association of Small & Medium Enterprises (ASME), Restaurant Association of Singapore (RAS), Singapore Retailers Association (SRA) and the Singapore Tenants United for Fairness (SGTUFF).
In a media briefing on 21 July, Andrew Kwan, president of RAS, representing the alliance says, “With yesterday’s announcement on the return to Phase 2ha, all sectors of frontline businesses, including the retail, F&B, services and other businesses, are deeply concerned with the sustainability of our businesses. After some 16 months of a roller coaster endemic crisis, businesses who have managed to survive thus far are burdened by the loss of revenues and our ability to sustain jobs and afford rentals.”
With that, the associations are appealing for help from landlords to take on a fair share of the burden with their tenants across all sectors including F&B, retail, services and other frontline businesses. Timely rental rebates commensurate with revenue impact whenever mandatory dine-in or social movement restrictions are in place will be appreciated.
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According to Kurt Wee, president of ASME, “Since the last Phase 2ha in May, the vast majority of frontline businesses have not received significant support from landlords for our rentals. The main rental help came from the government and it is coming next month.”
“There has been sporadic and selective help given by landlords… We can easily say that about 80-90% of tenants within our communities have yet to receive any help from landlords since May. In fact, the last time we had any significant help from landlords was last year during the circuit breaker when it was mandated by the government,” adds Wee.
The associations are also pleading for support to all frontline businesses including retail, F&B and services on the cost of wages for both local and foreign employees so that businesses can keep as many jobs as possible, as well as an extension of bank loan principal moratorium to June 2022.
Nonetheless, the alliance remains fully supportive of and in agreement with the government’s plan to accelerate and expand the vaccination, testing and contact tracing programs so as to turn this pandemic into an endemic issue.
“All of us here would like to jointly appeal to all Singaporeans to encourage your loved ones and those within your own social circles to please support the national [vaccination] drive to achieve herd immunity quicker. That is ultimately our true ticket out of this cycle.” says Kwan.
Photo: The Edge Singapore
