Do you know why things are expensive in SG?

[Scrooball (clone)]

Mr Lau and Ms Mah, the husband-and-wife owners of The Skin Pharmacy, at their branch in nex shopping mall. They will be closing their City Square Mall branch as the landlord there is asking for a four-fold increase in rent. Mr Lau is hoping for rent control laws as they will help control rent increases. -- ST PHOTO: LAU FOOK KON

Squeezed by rental and transport costs

Lau Min-Tsek and Mah Mei Hui

Owners of The Skin Pharmacy

The husband-and-wife team founded the firm, which specialises in skincare and skincare products, in 2009.

The Skin Pharmacy has three shopping mall outlets - in City Square Mall, nex and Parkway Parade. Another outlet will open in May at Jem. The chain has 15 staff, including the bosses.

Their main issues

RENTALS are a headache, with contracts often factoring in a yearly increase as well as a percentage cut of sales. The problem is exacerbated when the lease is up for renewal.

The Skin Pharmacy's landlord at City Square Mall had asked for a four-fold increase in rent which Ms Mah, 40, said is "far greater" than projected sales growth.

"We have no choice but to move out of our first outlet at City Square Mall when our lease ends in March," she said.

Transport costs are also an issue. The firm's two vans are more than 10 years old, meaning higher maintenance costs and more breakdowns. But it is difficult to afford a new van with the sky-high certificate of entitlement (COE) prices even for goods vehicles.

Staff costs are less of a bugbear. "(We) are still growing and we can manage our overhead and rental costs without underpaying our staff or relying excessively on foreign workers to lower our cost," said Mr Lau, 42.

What they hope to get

The company is not looking for grants, said Mr Lau. "You need to spend to save (with the grants)... We have learnt that to survive, you cannot rely on the Government for handouts."

But the Government can help by relooking COEs, especially for vans used commercially. "Does the Government want to add to production costs when it is really the private consumption of private cars that needs to be penalised?"

Rent control laws will also help. These will help control rent increases. Mr Lau said such laws exist in many countries and some degree of legislation may be timely.

 

[AhGuan]

Fucking greedy landlords.

Fuck PAP !

 

[Alamaking]

its always the rental, the last time landlord increased the rent up to 30%, i told them to fuck off, lol

 

[Scrooball (clone)]

That's why PAPpy ministers are stupid or turning a blind eye to rental costs. There is no protection from landlords from rental increases. End up those retailers have no choice but to resort to cheap foreign labor.

4 fold increase in rent is no joke!

 

[Narong Wongwan]

Typical sinkie mentality..........landlord see tenant doing well.........upz rental.

 

[Kinana]

The old adage, 'follow the money'. Who pays for all these? The consumers, its you fellas.
If you fellas are not willing to pay you think they can charge?

 

[crackhead]

Capitaland is the biggest retail landlord in SG!!!!

 

[Narong Wongwan]

That's why PAPpy ministers are stupid or turning a blind eye to rental costs. There is no protection from landlords from rental increases. End up those retailers have no choice but to resort to cheap foreign labor.

4 fold increase in rent is no joke!

Many MIWs are landlords themselves

 

[eErotica69]

Demand and supply chump. If you have a shop, will you rent out at $10? You would want to rent at at market rate, right?

Similarly, you can rent your shop for $1 mil per month. See any takers or not?

 

[enterprise2]

With the introduction of Reits, rentals have gone up as the Reits maximize profit for every sq FT for their shareholders. Mapletree, Capitaland, Far East , Cambridge..etc.. Every time they take over any properties, u see them taking out more walkway spaces to rent out to shops or pulley cart vendors.

 

[iamhere]

The old adage, 'follow the money'. Who pays for all these? The consumers, its you fellas.
If you fellas are not willing to pay you think they can charge?

PRECISELY, we shall end the welfare state facilities for PAPees...





we had long been a welfare state for papees n cronies where they first claim that
they should be paid XXX amount of $$$ if not, they would be better off in private sector or in biz themselves.

By "default", since we do not have enough opposition to veto all these "claims", these leeches at the first split second
when they are elected or "elected" thru walkovers, commit FUNDAMENTAL BREACH of what they claim.

They hold tonnes of appointments, directorships and/or in biz themselves.

Having more than one appointment does not give one more than 24hrs per calendar day...

Question remains: WHO did they neglect?

Shareholders of public listed companies?

(Public) Stakeholders of GLC or statutory boards?

or???


We had long been providing WELFARE STATE facilities for PAPees n CRONIES....


MY FELLOW SINGAPOREANS PLEASE...

REMEMBER to

VOTE papees OUT


do yrself, yr forefathers and yr generations to come, a favor, a service and a long-awaited justice

 

[Scrooball (clone)]

PAPpy dogs are really useless. Failed to address the root problem of rocketing rental and still blame us for not allowing them the option of bringing in foreign trash to provide cheap labor.

 

[Kinana]

Demand and supply chump. If you have a shop, will you rent out at $10? You would want to rent at at market rate, right?

Similarly, you can rent your shop for $1 mil per month. See any takers or not?

these people have no clue about economics. They just go thru life blaming others for everything. These ppl will end up losers in life for sure.

 

[laksaboy]

If I were to hazard a guess... it's because of those REITs. They only care about maximizing profits, shareholder value and returns on investment. They are nothing more than rent vampires. They don't care if you've been in business for decades, or have built up a clientele at that location.

Malls and public commercial space needs to be co-owned by a public trust.

 

[lifeafter41]

If I were to hazard a guess... it's because of those REITs. They only care about maximizing profits, shareholder value and returns on investment. They are nothing more than rent vampires. They don't care if you've been in business for decades, or have built up a clientele at that location.

Malls and public commercial space needs to be co-owned by a public trust.

Co owned or co-ops owned - NTUC

 

[enterprise2]

Only way is for HDB or JTC to run shopping malls. Maybe HDB should do it since they landlord to shops at HDB blocks.

 

[lifeafter41]

With the introduction of Reits, rentals have gone up as the Reits maximize profit for every sq FT for their shareholders. Mapletree, Capitaland, Far East , Cambridge..etc.. Every time they take over any properties, u see them taking out more walkway spaces to rent out to shops or pulley cart vendors.

REITs is just another layer to collect fat fees and screw shareholder and tenants.
Consumer is the one ultimately being screwed.

 

[Narong Wongwan]

Demand and supply chump. If you have a shop, will you rent out at $10? You would want to rent at at market rate, right?

Similarly, you can rent your shop for $1 mil per month. See any takers or not?

There is market rate and there is profiteering....know the difference CHUMP!

 

[lorrydriver]

Only way is for HDB or JTC to run shopping malls. Maybe HDB should do it since they landlord to shops at HDB blocks.

yes agree. close off all the suburban malls, bring back the shophouses town centres. I prefer those days. We don't need food courts, coffee shops enough. Anyone want to waste money, go orchard and pay tourist prices..

 

[enterprise2]

yes agree. close off all the suburban malls, bring back the shophouses town centres. I prefer those days. We don't need food courts, coffee shops enough. Anyone want to waste money, go orchard and pay tourist prices..

Actually u need a couple of combinations to bring down costs. Lets say HDB build a mall and rent space to a not so profit driven company like NTUC, then u take out rental costs and tenant greed. But remember NTUC still got to import the stuff from overseas since we don't make or produce anything here. Maybe NTUC can go into services like hair saloons or skin care! to bring costs down. They r already running some food courts or coffee shops.