Assistance for Shops and Retail Outlets in HDB Estates to Boost Vibrancy and Competitiveness

Mr Murali Pillai asked the Minister for National Development what steps are being considered to assist shops and retail outlets in HDB housing estates to boost their vibrancy and competitiveness and address the general drop in patronage at these locations.

HDB shops not only provide residents with convenient access to essential goods and services, but also serve as a social node for residents to mingle and enhance the vibrancy of HDB communities. HDB shops are well-patronised by our residents  and overall vacancy rate for HDB shops remains low. Nevertheless, our heartland shops do face challenges given changing consumer habits and preferences, and most recently, the COVID-19 pandemic.

Given the important role the heartland shops play in our HDB estates, the Government has put in place various short- and medium-term measures to tide them through difficult periods and to help them transform for the future.

In the past one to two years, the Heartland Digitalisation and Revitalisation Committee (HDRC), co-chaired by Senior Minister of State Sim Ann and Minister of State Low Yen Ling, supported heartland merchants in advancing their digitalisation efforts and growing their revenue streams. The HDRC worked with agencies to introduce initiatives such as Heartlands Go Digital to accelerate the adoption of digital solutions and Visual Merchandising to improve heartland shopfront aesthetics to attract customers. Events were also organised to attract footfall. For example, the three-month long Heartlands Festival, which commenced in November 2021, resulted in 20% more footfall in participating precincts and up to 30% more revenue among some shops. Support packages such as rental waivers for our HDB merchants and Community Development Council (CDC) vouchers were also given out to Singaporean households to use at participating hawkers and heartland merchants.

Beyond the business impact of the COVID-19 pandemic, however, there is a need to undertake deeper measures to help our shops remain competitive and relevant to customers and the community. Firstly, under the Revitalisation of Shops scheme (ROS), HDB provides co-funding to help retailers upgrade their shopping environment or carry out promotional events to attract crowds. HDB is currently reviewing how it can further improve this scheme, to enhance its attractiveness and increase the take up rates. More details will be announced in the coming months.

Secondly, as announced during Committee of Supply 2022, HDB partnered Enterprise Singapore (EnterpriseSG) to launch Our Heartlands 2025 programme. Over the next four years, up to $50 million will be set aside to support heartland shops, (i) continuing to deepen digitalisation and manpower capabilities; (ii) enhancing liveliness of shopfronts and supporting events to draw footfall; and (iii) upgrading capabilities of Trades Associations and Chambers to better support heartland shops.

Finally, HDB has also partnered with EnterpriseSG and the Prime Minister's Office to undertake the Heartlands Shops Study, which is a study on the social and economic value of heartland shops for various stakeholders such as residents, business owners and merchant associations. Over 2,800 stakeholders were engaged through the study to gather feedback and ideas on how to increase vibrancy, inclusiveness and heritage in our heartland shops. We will reference the views and study new measures to further enhance the vibrancy and relevance of heartland shops.