Heroes Unmasked: Businessman offers to lend S$50,000 of own cash to fellow retailers hit by Covid-19 outbreak
SINGAPORE — At a time when the earnings of retailers and food and beverage (F&B) outlets are taking a hit due to the Covid-19 outbreak, businessman Mr Logan Wong is forking out S$50,000 of his own savings to lend to other retailers hit by financial hardship.
As Singapore battles the Covid-19 outbreak, TODAY’s Heroes Unmasked series highlights those who are doing their bit to spread kindness and compassion during this period. In this instalment, we speak to Mr Logan Wong, founder of the distributor of Yankee Candle, on why he is dipping into his personal savings of S$50,000 to help fellow retailers.
SINGAPORE — At a time when the earnings of retailers and food and beverage (F&B) outlets are taking a hit due to the Covid-19 outbreak, businessman Mr Logan Wong is forking out S$50,000 of his own savings to lend to other retailers hit by financial hardship.
The loan is on offer to firms that are part of an informal support group of retailers, which has more than 300 members. Five companies of this group will get S$10,000 each.
Mr Wong, 44, who is the founder of a firm which distributes Yankee Candle, a brand of aromatic candles, is also spearheading a related “Covid-19 Pledge”, where he and other business owners are joining hands to offer cash allowances to staff whose income falls below S$2,000 a month.
Staff members of companies that are part of the Pledge will get a S$30 cash payout for the months of February, March and April.
“This Covid-19 cash allowance is aimed at helping our colleagues to relieve the additional cost of buying supplies such as face masks, hand sanitisers, and disinfectants to cope with a heightened level of hygiene for themselves and their family,” Mr Wong said.
Speaking to the media on Wednesday (March 4), Mr Wong said he recognises that the cash payouts and business loans are not much.
Using a Mandarin idiom to refer to a situation where people provide needed help even in dire circumstances, Mr Wong said: “The whole point is to show the employees that you care and for those businesses who see that they can survive this, they want to make sure that they use the opportunity to build a great relationship with their employees.”
“To the business owners, what we are saying is hang in there.”
Mr Wong, who has 12 stores around Singapore, is by no means cruising through the Covid-19 outbreak unaffected by the business downturn.
“Those who can hang in there doesn't mean that their business is not affected. It simply means that we are lucky enough to have a sum of money to tide us through this,” he added.
In fact, Mr Wong said sales at his business have fallen by 23 per cent over the first two months of 2020, compared to a year earlier, which translates to a S$225,000 drop in revenue.
He hopes that other companies who have the cash reserves will join him in these initiatives.
“There will be companies who are very well equipped, their cash position is good enough to handle this,” he said.
Some have already joined Mr Wong in the Covid-19 Pledge including bag retailer Bagzx, maternity wear shop Bove, waxing salon Pink Parlour, and F&B outlet Wok Hey.
The group will also match the cost of the cash allowance one to one, for companies who are keen to make the payment to staff but are unable to fork out the entire amount, the group said in a media statement on Wednesday.
As for the business-to-business loan, Mr Wong said the lending is so far restricted to only businesses in the informal support group as there is no way he can do the necessary due diligence like banks in relation to firms he is not familiar with.
“Frankly whoever wants to give that S$10,000 must be prepared that they lose the money. That's the truth because there's no approval process. There is no interest. There's no reason you will do this,” he said.
All companies need to do is prove to him that they are a registered business owner with Accounting and Corporate Regulatory Authority and have at least S$20,000 in paid-up capital when registering and sign a promissory note, which will lay out the repayment plan.
LANDLORDS YET TO GIVE CONCRETE DETAILS OF REBATES
Mr Wong emphasised that he is not asking for more Government handouts but suggested that landlords need to provide rental rebates, above and beyond just passing on the savings from Government tax rebates to tenants.
Assuming the landlords would pass on the full savings of the 15 per cent property tax rebate, which was announced by Deputy Prime Minister Heng Swee Keat during Budget 2020 on Feb 18, he said he would get a rebate of S$15,000 from the annual rent.
Also announced during the Budget was the Jobs Support Scheme, where the Government will pay for 8 per cent of the wages of Singaporean workers, up to a monthly cap of S$3,600 for three months. Mr Logan said his savings from this scheme would be about S$40,000.
The cuts in corporate income tax would save him another S$15,000.
Mr Wong said his total savings from Budget 2020 would add up to about S$70,000, which is way below the drop in revenue of S$225,000.
He said in Hong Kong, he has been offered as much as a 50 per cent cut in rent for two months for his shops there.
In his media comments, Mr Wong also said the seven landlords of shops where he retails Yankee Candle have not provided concrete details relating to the relief package to assist businesses unveiled by the Government in Budget 2020. The landlords are: CapitaLand, Lendlease, Asia Malls, Suntec City, Mapletree, Mercatus Properties, and Sun Venture.
He said that he has only received some letters from landlords to say that more information on the relief package will be made known “in due course”.
“The landlords really need to give us a ‘by-when’ date. You cannot launch something and then not give us a ‘by-when’ date because the businesses need to plan when your money is coming in so that they know how they can go and borrow or do whatever to fill in their short term needs,” he said.
Mr Wong’s concerns mirrors that of the Restaurant Association of Singapore (RAS), who sent out a statement on Monday, expressing their deep disappointment that landlord’s promises of rebates have not come through.
A day later, Trade and Industry Chan Chun Sing said during Parliament that landlords who “stinge” and do not pass on savings from the rebate are “very short-sighted”.
Various landlords responded by saying they were in the process of arranging to pass on the rebates.