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     Measures to help HDB retailers

Continued from FrontPage of Article

ANNEX A1

DETAILS OF THE ROS SCHEME & HEARTLAND RETAIL PROGRAMME

ROS SCHEME


1         The ROS scheme comprises three components, viz. co-funding for upgrading of common area, co-funding for promotional activities and rent-free periods for tenants to renovate their shops. MAs may choose to take up all or a combination of the measures.

Co-funding for Upgrading of Common Area


2         Over the years, several local MAs have worked with Town Councils to carry out physical upgrading works in the common areas in Town Centres and Neighbourhood Centres, so as to improve the shopping ambience. However, shop owners currently have to bear the full cost of items that benefit the shops directly such as block awnings. Under the ROS Scheme, shop owners will only need to pay 50% of the cost, while HDB and Town Councils will bear the other 50% or up to $10,000 per shop. For rental shops, HDB and Town Councils will bear 100% of the upgrading cost, or up to $20,000 per shop. The respective Town Councils will carry out such works in tandem with its upgrading works for the entire shopping area.

Co-funding for promotional activities


3         MAs have also been active in organising promotional activities to attract crowds to their respective Town or Neighbourhood Centres. To assist the MAs, HDB will co-fund up to 50% of the expenditure for promotional activities organised by them. The total funding will be based on the number of MA members, subject to an annual cap of $500 per sold shop and $1,000 per rental shop. To qualify for the funding, MAs will have to plan for at least two thematic events per year. The funding can be used to pay for the publicity and logistics for the events.

Rent-free renovation period for tenants


4         HDB retailers are encouraged to upgrade their shops and business operations, to complement the upgrading of the shopping environment and promotional activities. To facilitate such efforts, HDB will grant its tenants a rent-free period of up to one month, when they renovate their shops. The rent-free period will be offered to the tenants only if the renovation is done together with the overall upgrading/promotional activities. To qualify for the rent-free period, the tenant must be an MA member and have rented the shop from HDB for at least six years.

HEARTLAND RETAIL PROGRAMME


5         Under Heartland Retail Programme, SPRING will provide funding for revitalisation projects such as engagement of consultants to map out strategies to revitalize the shops. SPRING will fund up to 70% of the manpower costs, equipment costs and professional services.

6         As part of the programme, SPRING will also provide a one-time funding to help HDB retailers upgrade both their shops and skills. The funding will be up to 70% of the qualifying costs, subject to a cap of $10,000 per shop. The qualifying costs include layout and space planning, merchandising and display, skills training, purchase of equipment etc.


ANNEX A2

 

LIST OF 14 SITES SELECTED FOR PILOT ROS SCHEME

S/No.
Site
Block No.
1

Marine Parade Town Centre

80, 81, 82, 83, 85, 86, 87 & 89

2

Tampines Neighbourhood Centre 1

136, 137A-D, 138 & 139

3

Jurong West Neighbourhood Centre 5

501 to 504, 506 to 509

4

Serangoon North Neighbourhood Centre

151 to 154, 151A,152A,152B & 153A

5

Bedok Town Centre

202 to 206, 208 to 215, 217 ,218, 207A, 211A & 214A

6

Teck Whye Neighbourhood Centre

137 to 146

7

Toa Payoh Town Centre

175, 177 to 179, 181, 183 to 186, 190 to 192

8

Changi Village Neighbourhood Centre

1, 4, 5

9

Clementi Neighbourhood Centre 1

105 to 109, 107A & 108A

10

Tampines Neighbourhood Centre 8

821 to 829, 823A, 826A & 828A

11

Serangoon Town Centre

253, 254, 254A, 261 to 267

12

New Market Road

32

13

Yishun Neighbourhood Centre 1

101 to 103, 106, 101A-C

14

Tampines Neighbourhood Centre 2

201,201A to 201E, 201G




ANNEX B1

Background Information on Restructuring Programme for Shops (RPS)


1         The RPS, first announced in Mar 2005, is to assist tenants of HDB shops located in areas with an over-supply of shops and with poor business, to retire from business or to restructure and upgrade their business operations.

2         HDB has implemented two batches of RPS, both of which received good support from shop tenants. Of the 453 shops in these two batches, 219 shops (48%) were cleared as these shops were located in blocks where more than 50% of the tenants had opted to give up their businesses.
 

Features of RPS Batch 3


3         In Mar 2007, Minister of State for National Development, Ms Grace Fu announced RPS Batch 3 where the qualifying criterion has been revised to 30% of the tenants who wished to quit their business.

4         Under RPS Batch 3, the qualifying criterion has been revised downwards to 30% from 50% to allow more tenants to benefit from the programme. Before a block can proceed with RPS, the tenants will also need to have a feasible regrouping plan. Under such a plan, those who want to continue their business will be regrouped to vacated shops with other remaining tenants for better business synergy, while vacated shop clusters could be converted into void deck space or allocated for other social communal uses.

5         Tenants who are regrouped will be given a removal allowance of $10,000. However, if the majority of the tenants opt to give up their businesses, leaving behind only 1 or 2 shops, the remaining tenants may have to be regrouped to other blocks where there are available vacancies. Those who wish to give up their business will receive an ex gratia payment of $60,000 if they are eligible.

6         To facilitate the implementation of the RPS, a local RPS Working Committee will be formed for each site. The Committee will comprise grassroots leaders, representatives from the shop tenants and officers from HDB. Besides explaining the objectives and procedures of the RPS, implementing a feasible re-grouping plan, the RPS Working Committee will also advise the remaining tenants on retail promotion plans to improve and upgrade their businesses.


ANNEX B2

BLOCKS MEETING THE CRITERIA UNDER RPS BATCH 3

S/No
Site
Block
No. of Units
1

Bedok North Rd

115
12
2

Bedok Reservoir Rd

150
4
3

Commonwealth Drive

78
2
4

Haig Rd

13
12
5

Hougang Ave 6

528
4
6

Jln Sultan

19
5
7

Jurong East St 21

237
3
8

Kreta Ayer Rd

333
51
9

Mei Ling St

158
8
10

Stirling Rd

171
10
11

Yishun Ring Rd

807
10

 

 

Total
121



ANNEX C

SUMMARY OF EXISTING AND NEW ELECTRICAL UPGRADING CHARGES

 

Loading
Existing charges
New charges
Rental shops
Sold shops
Rental shops
Sold shops
Up to 1 phase 60amp
$45 per amp
$85 per amp
Free
$45 per amp
Beyond 1 phase 60amp
$45 per amp
(no change)
$85 per amp
(no change)


(Note: The full cost of electrical upgrading is about $85 per amp per shop. This cost comprises mainly infrastructural cost such as the construction of electrical substations, switch rooms and switchboards as well as service connection charges that HDB pays to Powergrid.)

Source: www.hdb.gov.sg Press Release 14 Nov 2007