Moderating Shop Rental Increases in Heritage Precincts Such as Chinatown and Kampong Gelam

Mr Fadli Fawzi asked the Minister for National Development (a) whether the Government is aware of the trend of bidding wars and subletting driving up rents in Kampong Gelam; and (b) if so, whether the Government intends to take any action to curb this practice, and if not, why not.

My response will also cover matters raised in the questions by Ms Nadia Ahmad Samdin and Mr Saktiandi Supaat, which are scheduled for a subsequent Sitting.

The Government carefully monitors retail rents across Singapore. As shared recently by the Urban Redevelopment Authority (URA), median rents for retail spaces in historic districts of Kampong Gelam, Little India and Chinatown, including sublet arrangements, have increased at a moderate pace of around 2% per annum over the past two years. These increases were comparable with rental increases of conventional retail space in the Central Area and lower than nominal gross domestic product (GDP) growth over the same period.

There has also been some interest about the recent closure of Warong Nasi Pariaman in Kampong Gelam. It was reported in the media that a representative from the family recently clarified that the closure was not related to rental issues and we should not wrongly conclude that this was due to high rental. That notwithstanding, Mr Speaker, like many Singaporeans, I am saddened by the sudden closure of this heritage business, and the agencies are in touch with Warong Nasi Pariaman to discuss how we can facilitate their continuation should they decide to do so.

The Government will continue to support our heritage businesses. The Inter-Agency Task Force for Heritage Businesses, Traditional Activities and Cultural Life has also introduced new measures, such as marketing and business consultancy support under the National Heritage Board's (NHB's) SG Heritage Business Scheme. This also includes enhanced place management support to better showcase the heritage trades and activities in each historic district.

Thank you to the Senior Parliamentary Secretary. My first supplementary question is, may I ask the Ministry to provide the source of data to say that the rental hike is comparable to the central district, and if the central district, which is really big, is really the appropriate segment to compare those rentals with? And also, to specify where the data says that a lot of these rental hikes are lower than the GDP growth?

My second supplementary question is, with Minister Faishal Ibrahim and myself, we work quite closely in, for example, the Kampong Gelam area. We know that the rental hikes are not an issue that is easily managed and that there are different views and interests of the different stakeholder groups, like the tenants, the landlords, the public and the heritage groups. Can the Ministry advise how and when it will coordinate with the relevant agencies, like the Ministry of National Development (MND), the Ministry of Trade and Industry, the National Arts Council, NHB and URA, for instance, one, to identify what qualifies as a heritage business; two, to list the different options available and being considered to balance the interests of the different stakeholder groups? Landlords, of course, want higher rates, tenants want as low as possible, and the heritage folks want the nature of heritage to be preserved. So, questions for you, Sir.

I thank Ms Denise Phua for her supplementary questions. Indeed, when it comes to heritage businesses where there is so much character as well as value that they bring to the society, when one closes, it really hits the heart quite strongly, especially for the specific communities relating to Kampong Gelam, Chinatown as well as Little India.

The first question was relating to the source of the data and the Member alluded to the statement made by URA some days ago with regard to the moderate rental increases. The majority of leases in Kampong Gelam saw moderate rent increases below that of nominal GDP growth and comparable to the increases of conventional retail spaces in the Central Area. This is based on comprehensive rental records submitted for the stamp duty purposes. So, this is where URA's data came from. We understand that some of the data cited in some media reports may be based on anecdotal or incomplete data, and this data may not be representative of the overall rental situation in Kampong Gelam.

We note that the rentals might not be homogeneous across the entire district. As the Member has alluded to, the Kampong Gelam district is actually quite big. While the median rents of the historic shophouses in Kampong Gelam increased at a moderate pace, there was also a small proportion of leases signed between 2023 and 2025 which did see higher rental increases of 25% or higher. In this particular aspect, these included leases in streets with high footfall – in Kampong Gelam specifically, such as Haji Lane and Bali Lane. And some of these leases were previously contracted at below market rates, and therefore, subsequent to that, they may have experienced a larger increase from their low base when the rates normalised toward the prevailing market rate.

Notwithstanding the rental increases, their rental rates remained around 20% to 60% below that of conventional retail spaces in the Central Area as a whole.

On to the second question by the Member, with regard to the variety of views from the members of the public and from heritage groups, indeed, there are a wide variety of stakeholders interested in preserving our heritage as well as culture. Specific to that, the Member has already alluded to the promulgation of the Inter-Agency Task Force for Heritage Businesses, Traditional Activities and Cultural Life that brings together key agencies to develop policies and schemes to better support heritage businesses in historic districts.

In October 2025, NHB launched the SG Heritage Business Scheme to recognise heritage businesses and encourage public appreciation of their cultural value. Today, 42 businesses have been designated under the scheme, including 21 in Kampong Gelam and Chinatown. NHB's Organisation Transformation Grant also supports heritage businesses to adopt innovative projects for long-term viability.

So, we do recognise that it takes a whole-of-Government approach, spanning a few different Ministries, to be able to look at the heritage space. One aspect of it is with MND, but we are also working with the Ministry of Culture, Community and Youth, which looks at NHB and certainly, with URA. In parallel, URA works with local business associations to curate and support businesses that contribute to the place identity of such historic districts.

It takes an entire village to be able to raise the awareness of heritage and its value for our society and that is something that the Government will continue to work towards.

Thank you, Speaker. I have three supplementary questions. Firstly, in light of the sustained increase in shophouse transactions and prices over the past years, does the Government have any plans to extend the Additional Buyer's Stamp Duty (ABSD) and Seller's Stamp Duty (SSD) to commercial properties in heritage districts, considering their limited supply and heritage value?

My second supplementary question is, will the Government consider changing the way property tax is calculated for commercial purposes in heritage districts to incentivise or reward landlords who reduce the rents for their tenants and/or take steps to retain the character of their heritage district?

For my third supplementary question, I refer to my written Question No 66 on the Order Paper. I asked about the number of shophouses in Kampong Gelam that are on Wakaf land. I want to ask whether MND has any plans to work with Warees Investments to protect the cultural identity and historical value of such shophouses, and if not, why not?

I thank the Member for his three supplementary questions. The first, in relation to plans for ABSD or property tax changes to commercial property, there are no current plans that the Ministry has with regard to these two steps. With regard to the question on Wakaf land and shophouses within, I believe that is not within the remit of the questions that I will be answering for this set of Parliamentary Questions.

(In Malay): [Please refer to Vernacular Speech.] Thank you, Mr Speaker, and also to the Senior Parliamentary Secretary for the explanation. I would like to add two supplementary questions.

If I am not mistaken, there are already planning guidelines for the types of activities and use of premises in the areas closest to Sultan Mosque. Will the Government consider reviewing whether the coverage of that area should be extended to other parts of the Kampong Gelam area to ensure that business activities are aligned with cultural heritage values and local community functions, as well as promote suitable activities that foster local entrepreneurial spirit?

(In English): And the second supplementary question in English, please. Heritage districts, such as Kampong Gelam, often function not only as conserved heritage spaces but also as natural entry platforms for culturally rooted and community-based enterprises because they offer visibility, clustering effects and market access that support early brand formation. And I am sure many agree that there have been younger brands that have grown in Kampong Gelam, which introduced local flavours to the community and to tourists.

Has the Government considered whether conservation and place management approaches could also incorporate elements of business incubation and structured tenant mix to encourage some of these younger businesses?

I thank the Member for her two supplementary questions. With permission, I will answer both in English, even though I understood quite clearly the first question in Malay.

With regard to the Member's question on ensuring the appropriateness of the activity within the heritage district, which is her first question, and wanting to be able to strengthen the businesses there in keeping with the intent of the heritage districts, I wish to reassure the Member that to safeguard the vibrancy of our historic districts, whether they be Kampong Gelam, Chinatown or Little India, the URA has put in place controls to exclude non-heritage users, such as fast food restaurants, supermarkets and new bars, even to the extent of ensuring the number of souvenir shops are maintained by a certain measure, from the core areas of these historic districts. This helps to shape the tenant mix that aligns with the district's historic character as well as unique identity.

In terms of potential expansion of the space, I think the current delineation of the districts are also related to their historical significance to the community there. But that is something we can take back and see whether the borders of the district or certainly, the activities within the district, can be further expanded and enhanced. And that is certainly the intent – to be able to enrich and enliven the activities there.

On the Member's second question with regard to historic districts being a natural entry platform and clustering access especially for younger brands, I was at Kampong Gelam over the weekend where there was the Urban Arts Festival and certainly, there is also a very thriving youth community there. I wish to reassure the Member that the work continues through the work of the Inter-Agency Task Force where therein lies a very close partnership, for example, in the upcoming Ramadan bazaar between URA as well as Kampong Gelam Alliance. At the same time, you see similar patterns in the heritage district of Chinatown, where you find that the local community is there, including the People's Association as well as the Citizen's Consultative Committee (CCC), engaging the trade associations to promote the Chinese New Year Festive Fair this year.

So, you see that the partnership is not only on account of the Government alone, but also together with the ground, including the businesses, the trade associations as well as their relevant alliances within the heritage districts and also the natural organic community that arises from the different districts to make sure that our heritage districts continue to be protected and preserved, especially given the deep value that they have for our communities.

Thank you, Mr Speaker. I do not want to belabour the point that was raised earlier by earlier Members about the support for heritage-linked small and medium enterprises (SMEs) to balance between sustainability and market forces. It is especially so, with the closure of Pariaman, because a lot in the Malay community are very sad to hear about the closure of Pariaman. Many of us go there over the past decades. So, it is the multi-year food and beverage (F&B) businesses, such as those in the area, being affected, which affects some of those in the Malay community.

My question is, Mr Speaker, beyond this, the Senior Parliamentary Secretary mentioned about the Kampong Gelam Alliance, my main question is, in terms of support for businesses – not just F&B businesses around the Sultan Mosque area, but also, in general, heritage businesses – but in particular, for example, around the Sultan Mosque, some of the non-F&B businesses around the area provide a distinctive feel to the area around the Sultan Mosque.

My question is whether there will be further support, going forward, to work with the Kampong Gelam Alliance, or other alliances for that matter, in other heritage areas, and possibly with the SME Centres to make sure that we find out the issues that they face – whether it is non-rental or rental or manpower issues – so that they can be addressed beforehand. And whether there can be more proactive action to be done together with the Government and non-governmental consulting services to help them before they reach a situation where there is no turning back, so that we can maintain the distinctive feel of those businesses.

I thank the Member for his supplementary questions as well as his deep concern for the SMEs within the area, specifically Kampong Gelam.

As I mentioned in my Parliamentary Question reply, certainly, it is within the scope and attention of the Inter-Agency Task Force for Heritage Businesses, Traditional Activities and Cultural Life to be able to further amalgamate the interests and concerns of the diverse stakeholders, already mentioned by Ms Denise Phua earlier, to be able to understand and see how best we can move forward. It takes beyond the Government to be able to find some of the solutions as well as navigate through the different challenges and interests of the different stakeholders. And certainly, as alluded to by the Member earlier, we will be looking towards wanting to partner the different alliances and the different stakeholders to be able to find the most suitable outcome moving forward for our businesses.

To that end, I would also stretch it further. Beyond the aspects of costs, through the work of the SG Heritage Business Scheme, they have also looked at how to uplift the businesses, specifically the designated heritage businesses, in terms of marketing as well as consulting support. We have been working together. And the bazaar is one such example that is coming up, towards ensuring that the space is well and alive, where people come to congregate and also support the local businesses as well.

It continues to be a work-in-progress. It continues to be up to the stakeholders to be able to guide and support our businesses in turn, so that the heritage businesses can continue to flourish in the relevant districts.