Effect on Retail Tenant Mix and Leasing Terms at The Clementi Mall Following Acquisition by Owner of Neighbouring Mall

Mr Speaker, tenancy mix and turnover in commercial developments are the result of commercial decisions made by both property owners and tenants. These decisions are influenced by market factors, such as consumer demand preferences and prevailing economic conditions.

With regard to competition concerns arising from mergers and acquisitions, Singapore adopts a voluntary merger notification regime to balance between effective regulatory oversight and keeping compliance costs low. Merger parties are expected to self-assess whether their transaction may give rise to potential competition concerns. Merger parties may approach the Competition and Consumer Commission (CCS) for pre-notification discussions or seek guidance on whether the merger may be anti-competitive. To support businesses in this process, CCS has published detailed guidance on the circumstances under which mergers may raise competition concerns.

The parties to the acquisition of The Clementi Mall have not formally notified CCS for a merger assessment. CCS will continue to monitor market developments and is empowered to step in, if it obtains information suggesting that a merger may result in potential competition issues.

I thank the Senior Minister of State for her response and reassurance. At the same time, I also want to thank the Minister for his written response to my two Parliamentary Questions yesterday on The Clementi Mall. I would like to assure that, even though the three questions are relating to The Clementi Mall, they address different concerns. I have three supplementary questions.

First, when CCS assessed the effects of competition beyond pricing, does it also consider non-pricing effects, for example, diversity of offerings and consumer choice, particularly in heartland malls? Because these are places where our residents rely on for their daily needs. I raise this because in Clementi today, a single owner controls two malls within the same catchment area. And in my conversation with my Clementi residents, they shared with me their concerns: "David, over time, will The Clementi Mall also have the same resemblance of tenant mix as Grantral Mall?"

My second question is on what basis would the effects of competition warrant intervention by CCS and what forms of intervention are available to CCS, particularly in situations when transaction of sale has already been made?

Third, I understand that CCS may step in when it receives information suggesting potential competition concerns. Could the Ministry clarify what type of information this would look like? And would feedback from residents and the general public serve as such information? If so, how might they be able to convey such information to CCS?

I want to thank the Member, Mr David Hoe, for his three comprehensive supplementary questions. And I will respond this way.

I think it bears repeating, for commercial developments, the tenancy mix is primarily market driven and a result of commercial decisions that is made by mall owners, operators as well as tenants. And over time, many Members who serve on the ground, you have heartland malls and so on, and Members will realise, over time, the tenant mix in a heartland mall often reflects the consumer demand driven by the needs, driven by the preferences of the residents. Customer is king. We need to allow the market forces to be at work. And I think, generally, we will all agree that it is in the mall operators' interest to provide differentiated products and services. If the malls are within near proximity, it will be quite interesting to have the same brand shop operating in both malls, unless it is due to capacity issues.

But I also want to assure the Member that allowing market forces to be at work does not mean CCS is hands-off. At the various platforms that we have shared, CCS has various levers, we have guidelines, very detailed guidelines. With regard to this, it is the CCS Guidelines on the Substantive Assessment of Mergers. We also have measures, and obviously we have law, the competition law or the Competition Act, to maintain a healthy competitive environment. CCS will assess the degree to which competition may be affected or is affected, based on facts, based on circumstances. Certainly, not based on hearsay, uncertainty, projections and so on.

I want to assure the Member that, for example, if any transaction results in substantially less competition that compromises the consumer welfare, CCS will step in. We will step in. And since the Member asked, price obviously is an important indicator. Another example is if CCS observes the behaviour of the organisations and if we pick up signals that they are coordinating the behaviour to raise prices, to reduce quality, to reduce output, to reduce innovation, CCS will step in.

I want to assure the Member that members of the public, including his residents, can certainly provide feedback – qualitative as well as quantitative – to CCS directly. And we will follow up accordingly and seriously. I wish that the Member will now pick up a pen and note this down. Let the Member's residents know to call us via the hotline – 1800 325 8282.

And well, if the Member prefers the web-based approach, we have a very succinct FormSG, where you can just use your handphone and go to www.ccs.gov.sg. There is a module that says, "Contact Us". I check it regularly. There is a link that tells you that if you want to report any anti-competitive behaviour, it points you there.

We welcome the Member's residents to give us the feedback and I assure him that we will follow up accordingly.