Impact on SME Tenants following Major Acquisitions of Heartland Malls

Mr David Hoe asked the Deputy Prime Minister and Minister for Trade and Industry in view of the acquisition of The Clementi Mall by a property firm which also owns Grantral Mall@Clementi (a) whether the Ministry has assessed how a concentrated tenant mix from one overseas market in heartland malls may affect inclusion and social cohesion; and (b) what levers are available to engage owners to support a diverse mix and local small and medium enterprises.

Mr Kenneth Tiong Boon Kiat asked the Deputy Prime Minister and Minister for Trade and Industry (a) whether the Competition and Consumer Commission of Singapore is evaluating the reported potential CapitaLand–Mapletree merger and will mandate a formal Phase 1 or Phase 2 review; (b) if so, how will the relevant market be defined to ensure accurate assessment; and (c) whether additional safeguards to protect SME tenants from possible abuse of dominant position in lease renewals will be considered.

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. Under this regime, merger parties are not required to notify the Competition and Consumer Commission of Singapore (CCS) of their merger transactions under the Competition Act to balance between effective regulatory oversight and keeping compliance costs low. Instead, merger parties are expected to self-assess whether their transaction may give rise to potential competition concerns. Nevertheless, CCS is empowered to step in if it obtains information suggesting that a merger may result in potential competition issues. Merger parties may approach CCS for pre-notification discussions or seek guidance on whether their 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.

In the cases of the acquisition of The Clementi Mall and the reported potential CapitaLand-Mapletree merger, the parties concerned have not formally notified CCS for a merger assessment. The CCS will continue to monitor both developments.

Separately, apart from competition oversight under the Competition Act, the Government has put in place measures to support fair and balanced lease negotiations between property owners and tenants. The Government worked with the Fair Tenancy Industry Committee (FTIC) to publish a Code of Conduct for Leasing of Retail Premises in Singapore. Since February 2024, all qualifying retail lease agreements must comply with the Code of Conduct under the Lease Agreements for Retail Premises Act. The Code sets out leasing principles to prevent the inclusion of unreasonable clauses in lease agreements, such as prohibiting landlords from charging a markup on electricity costs. In the event of disagreements over the lease negotiations or terms, the parties may bring their cases to the Singapore Mediation Centre for mediation or adjudication.

More broadly, the retail scene in Singapore remains competitive and vibrant, offering a wide range of options to consumers. The Government continues to support local retailers and SMEs in strengthening their capabilities.

Enterprise Singapore supports local retailers through schemes that help SMEs enhance productivity, transform their businesses and expand overseas. These include the Productivity Solutions Grant, the Enterprise Development Grant and the Market Readiness Assistance Grant.

The Government also supports targeted programmes that encourage local retailers to innovate and provide differentiated offerings. These include the Retail Maverick Challenge, which enables local retailers to pilot innovative and experiential retail concepts; as well as Design Orchard Retail Singapore (DORS), which showcases over 80 local design brands.

The Government will continue to partner with industry stakeholders and key trade associations, such as the Singapore Retailers Association (SRA), to explore additional ways to support local retailers and maintain the vibrancy of Singapore's retail sector.