Singapore’s ‘stingy nanny’ abates and outshines Hong Kong with rental relief to ease retail pain during coronavirus pandemic

Singapore has unveiled almost S$60 billion (US$42 billion) of stimulus amid worsening pandemic fallout, larger than Hong Kong’s measures

The city’s biggest landlords, some of which are controlled or influenced by state investment arm, have quickly passed on the benefits to retailers

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Published: 1:15pm, 18 Apr 2020Updated: 6:26pm, 18 Apr 2020

Singapore was called a “stingy nanny” city state a decade ago, for a low welfare budget relative to its wealth as the world’s third-richest country. That stinginess is changing, as Asian retailers confront their worst business slump in decades in a time of the coronavirus pandemic.

Since the government unveiled S$60 billion (US$42 billion) in stimulus package two weeks ago, an A-list of landlords – some of which majority-owned by state investment arm – have rushed to share the goodies with businesses to protect jobs. The government even enacted a law, just to make sure of that.

That is music to the ears for Bluebell group, the region’s biggest distributor of luxury retail brands with US$2 billion in sales, who pays some of the most expensive retail space in malls across Singapore, Hong Kong and Japan.

“The landlords in Singapore have been more understanding and the government has been giving out subsidies, including property tax rebates, which they can pass to tenants,” said Nelly Ngadiman, managing director for Southeast Asia at Bluebell. “We have seen a slowdown in sales since February, a bit later than Hong Kong.”

Nelly Ngadiman, managing director for Southeast Asia at Bluebell. Photo: Handout

The swift response is a stark contrast to Hong Kong, where landlords have offered what the industry calls “slow-drip” concessions to retailers even as sales cratered under months of social unrest, long before the pandemic pushed Hong Kong to unveil its record HK$137.5 billion (US$17.7 billion) relief package.

While no two programmes are similar, the level and readiness of policy support could shape impressions and decisions among investors long after the current public health crisis is over. Both financial hubs compete for everything from initial stock offerings to talents and billionaires.