BUSINESSES WITHIN RESTRICTED ZONE (Survey to determine impact of full-day Area Licensing Scheme)

Mr Robert Chua Teck Chew asked the Minister for Trade and Industry if the Government has conducted a survey of retailers and other businesses operating within the restricted zone to determine the amount of losses suffered or expected to be suffered by them as a result of the implementation of the full-day Area Licensing Scheme; and what assistance, if any, will be given by the Government to help those who are thus adversely affected.

The Minister for Trade and Industry (Mr Yeo Cheow Tong): Mr Speaker, Sir, my Ministry has not conducted a survey of retailers and other businesses operating within the CBD specifically to determine the impact of the recently introduced whole-day Area Licensing Scheme (ALS). However, the Department of Statistics carries out a monthly survey of business activities in Singapore including that of the retail sector. About half of the January returns have been received so far. The data shows that retailers within the CBD had about the same growth in sales in January as those outside the CBD.

The Government implemented the whole-day Area Licensing Scheme in order to ease the worsening traffic condition in the CBD during business hours. This will ensure that our limited road space in the CBD will be optimally used for the benefit of our economy.

Initial surveys by the PWD have shown that the number of cars going into the CBD has dropped by about 10% with the implementation of the whole-day ALS resulting in a smoother traffic flow. This will benefit retailers as an increasingly congested CBD will only deter shoppers who wish to drive into the CBD to shop. Shoppers can also use the extensive public transport system serving the CBD. Furthermore, those who are deterred by the ALS from entering into the CBD during the day can also do their shopping during the evenings and weekends.

As more shopping complexes are developed outside the CBD, retailers within the CBD will need to adapt and respond to the new competition. The best assistance the Government can give to retailers is to smoothen traffic flow within the CBD and help maintain it as an attractive shopping location.

Mr Robert Chua Teck Chew: Sir, will the Minister consider conducting such a survey, maybe jointly with the Singapore Retailers' Association, because some of them are complaining that they are badly hit?

Mr Yeo Cheow Tong: Sir, there are many factors that affect the retail business just like any other business. Some of the factors are competition from other retailers, even within the same shopping complex, the attractiveness of the business location or shopping complex, the merchandising capability of the retailer, the quality of the services offered by the retailer, and of course the product mix offered by the retailer and whether it is relevant to the needs of the potential customers. These and other factors probably have far greater significance than the $2 ALS fee that is being charged. It is therefore not possible to attribute the performance of those who did not do well purely to the presence of the whole-day ALS scheme. Therefore, we do not intend to conduct a survey specifically to find out whether there is any impact of the ALS scheme.

Mr Chng Hee Kok: Mr Speaker, Sir, will the Minister tell the House what is this growth in retail sales in January that he mentioned just now?

Mr Yeo Cheow Tong: The preliminary data indicate that retail sales grew by about 1% for businesses within the CBD as well as those outside the CBD.

Mr Low Thia Khiang (Hougang): Sir, the Minister mentioned just now that the sales level of the retail sector is determined or influenced by many other factors. So how does the Department of Statistics determine whether the growth of sales is not affected by the ALS?

Mr Yeo Cheow Tong: I did not state that the sales were not affected by the ALS. I said it is not possible to attribute any change to the introduction of the ALS.

Mr Robert Chua Teck Chew: Will the Minister consider having a dialogue with the Singapore Retailers Association on this issue?

Mr Yeo Cheow Tong: Sir, there is no need to. We will monitor the data for the following months and see what is the sales performance like.