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HDB shops to get more aid to revitalise business

SINGAPORE — His shop, which started out in 1984 selling plastic bags and disposable cutlery, had not been renovated for 20 years, but thanks to a scheme under the Housing and Development Board (HDB), Mr Ong Song Huat had new floor tiles installed in 2014 and got a new shopfront.

SINGAPORE — His shop, which started out in 1984 selling plastic bags and disposable cutlery, had not been renovated for 20 years, but thanks to a scheme under the Housing and Development Board (HDB), Mr Ong Song Huat had new floor tiles installed in 2014 and got a new shopfront.

“It is more comfortable for my customers,” the 68-year-old HDB shop owner said. Business has improved slightly since — by 5-10 per cent, he added. 

His shop, located on Jurong West Street 52, is part of a cluster of blocks within the Jurong West Neighbourhood Centre which underwent upgrading works co-funded by the HDB, under the Revitalisation of Shops (ROS) scheme. 

Mr Ong said he paid more than S$7,000 that covered half the costs, while the HDB covered the other portion. 

More HDB shops will soon get greater financial support from the enhanced ROS scheme. 

In details released by the HDB on Monday (May 9), the budget for upgrading common areas was raised from S$20,000 to S$35,000 per shop. 

Shop owners will bear only 20 per cent of costs, capped at S$5,000, down from 50 per cent previously. The HDB and the town councils will fund the remaining costs, capped at S$30,000. To encourage HDB shops without a Merchants’ Association to form one, they will get a new start-up fund of S$10,000. This is because Merchants’ Associations “play a pivotal role in driving the revitalisation efforts”, the HDB said. 

The associations will now also get funding of up to S$10,000 to appoint consultants to help them draw up upgrading plans under the enhanced scheme to address local needs. Consultants could survey retailers, and develop possible plans and artists’ impressions of upgrading works. Shop owners may then be better able to judge upgrading plans. 

These changes were recommended by a committee to revitalise heartland shops that included Merchants’ Associations, retailers and grassroots organisations. 

Mr Desmond Lee, Senior Minister of State for National Development, had announced that the Government would do more to support HDB shops during the Budget debate in Parliament last month. The enhanced ROS scheme is expected to cost about S$15 million annually.

The HDB said that since it began in November 2007, the ROS scheme has benefited 4,684 shops from more than 50 HDB Town and Neighbourhood Centres, covering more than 50 per cent of such centres — 16 of these centres have completed their upgrading, while another eight are at various stages of upgrading. 

The HDB will also continue to co-fund up to half of the spending for promotional events organised by Merchants’ Associations. 

Tenants will continue to enjoy up to one month of rent-free period when they renovate their shops under the ROS scheme, and the upgrading costs for rental shops will continue to be borne by HDB and town councils.

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