REVITALISATION OF RETAIL SECTOR

Mdm Claire Chiang See Ngoh asked the Minister for Trade and Industry, with retail sales now in negative growth for eight consecutive months and showing no sign of reversal due to slowdown in visitor arrivals and declining purchasing power all round, what plans his Ministry has to help revitalise this sector.

Mr Lee Yock Suan: The Government is in regular consultation with retailers, and is mindful that, apart from the structural problem of over-capacity facing the retail sector, retailers have been particularly affected during this economic slowdown. In the recent off-Budget package, several measures were targeted at providing relief to retailers: - A 40% property tax rebate on commercial properties for the year commencing 1st July 1998. This is on top of the 15% rebate announced during the FY98 Budget Statement. Landlords should pass on such tax savings to their tenants. - Suspension of the Carpark Surcharge Scheme with effect from 1st September 1998. Currently, a surcharge of $60 per month is levied on each lot in non-residential car parks with at least 5 parking lots in and around the Restricted Zone (RZ). - From 1st September 1998, when Electronic Road Pricing is extended to the RZ, the Area Licensing Scheme (ALS) operational hours will be shortened on Saturdays.

The Singapore Tourism Board has also intensified its tourist promotion efforts in markets such as Australia, China, Europe, India and USA to make up for the declining number of tourists from ASEAN and Japan. These efforts should have spin-off benefits for our retailers.

Retailers themselves have to act to weather the present downturn and overcome the structural problems. The Government has in place several schemes to promote their long-term upgrading and development. Further details are provided at Annex I (Cols. 743 - 744) . ANNEX 1 - PROGRAMMES/SCHEMES TO HELP RETAILERS (Cols. 743-744)