Measures

HDB adopts a 3-pronged approach to help our retailers: 
  • Upgrade the common area to improve shopping ambience
  • Organise promotional activities to attract shoppers
  • Encourage retailers to upgrade their shops and business operations
   

Revitalisation of Shops (ROS) scheme

The ROS scheme is part of our measures to help HDB retailers. It has benefitted more than 4,600 shops from 57 HDB Town Centres and Neighbourhood Centres.

We introduced the ROS scheme in November 2007 to boost the vibrancy and competitiveness of HDB shops. Where HDB retailers or the local Merchants' Associations (MAs) are keen to spearhead revitalisation efforts, the ROS scheme can help retailers upgrade the shopping environment and carry out promotional events. 

Enhanced ROS Scheme

The ROS Scheme comprises the following components:
  • Co-funding for upgrading of common area
  • Co-funding for optional shopfront improvement works
  • Co-funding for promotional events
  • Rent-free periods for tenants to renovate their shops
  • Start-up fund for formation of Merchants' Association

Co-funding for upgrading of common area

Over the years, many MAs have worked with Town Councils and Grassroots Organisations to upgrade the common property in the Town Centres and Neighbourhood Centres to improve the shopping ambience for our residents.

For the upcoming Batch 8 which will be announced in the later part of 2023, shop owners will bear 5% of the upgrading cost. HDB and Town Councils will bear the remaining upgrading cost. The budget per shop for upgrading works (inclusive of the shop owner’s 5% share) is capped at $35,000.

For rental shops, HDB and Town Councils will bear 100% of the upgrading cost, up to $35,000 per shop.

To support HDB shops to kick-start their revitalisation efforts, HDB will provide a funding of up to $10,000 for MAs to appoint consultants to provide preliminary concepts/artist's impressions of ROS upgrading.

Co-funding for optional shopfront improvement works

For shop owners who opt to carry out shopfront improvement works (e.g. replacement of signboard/ roller shutter) in tandem with ROS, HDB will co-fund 80% of the costs, capped at $3,000 per shop. Shop owners will need to bear the remaining 20% of the costs.

Co-funding for promotional events

HDB co-funds up to 50% of the costs for MAs’ promotional events to attract crowds to their towns and neighbourhood centres. 

The total funding will be based on the number of MA members, with an annual cap of $500 per sold shop and $1,000 per rental shop. MAs need to plan at least 2 events per year in order to qualify for the funding. The funding can be used to pay for the events’ publicity and logistical costs.

The co-funding for promotional events will be limited to no more than 6 consecutive years, subject to application each year. For the first 3 years of co-funding, the funding will be capped at 50% of the expenditure, or 50% of the total funding for the year for each event, whichever is lower.

For the fourth to sixth years of the co-funding, the amount will be gradually reduced (fourth year – 40%, fifth year – 30%, sixth year – 20%), subject to yearly application.

Rent-free renovation period for tenants

You are encouraged to upgrade your shop and business operations to complement the efforts made to upgrade the shopping facade and to carry out promotional events. If you renovate your shop in conjunction with the overall upgrading/ promotional efforts of the ROS scheme, you can enjoy a rent-free period of up to 1 month.

To enjoy this rent-free period, you need to be an MA member and have rented the shop from us for at least 6 years.

Start-up fund for formation of Merchants’ Association (MA)

For town and neighbourhood centres without an existing MA, a start-up fund of $10,000 will be made available to encourage the retailers to organise themselves to form an MA.

 

Support for Social Enterprises and SMEs with Inclusive Hiring Practices

HDB's Social Enterprise policy helps social enterprises to set up businesses at HDB shops at affordable and discounted rental rates. This contributes to the vibrancy and inclusiveness of our HDB neighbourhoods.

Under HDB’s Social Enterprise Policy, social enterprises which are members of the Singapore Centre for Social Enterprise (raiSE) can apply for direct allocation of an HDB shop or office space and benefit from a 30% discount in monthly rental rates (up to a maximum discount of $18 per square metre) for a 3-year term, with the option of renewing for another 3 years. The extended period of enjoyment of this discount is to give certainty to these social enterprises. Interested Social Enterprises can contact raiSE at enquiries@raiSE.sg for more details.

 

These benefits are also open to businesses that hire persons with disabilities or persons with special needs for at least 20% of their manpower in their premises. Interested businesses can contact SG Enable at opendoor@sgenable.sg for more details.

Eligibility Open to Social Enterprises who are a member of raiSE, as well as SG Enable-supported inclusive-hiring businesses (IBs) which hire persons with disabilities/ persons with special needs for more than or equal to 20% of their manpower on premises.
Rental Discount Benefits  30% discount for a 3-year term, with the option of renewing for another 3 years, capped at $18 per square metre.
Allocation and Quota

Direct allocation of a shop of their choice from any of HDB’s vacant commercial properties, at valuer-assessed market rent. 

 

Up to 30 shop spaces will also be made available for direct allocation each year, doubling from the current 15 units. 

 

FAQs

 

Q1 What is HDB’s Social Enterprise policy?


A1 Piloted on a small scale from 2012-2019, HDB’s Social Enterprise policy provides new and growing social enterprises with shop spaces at subsidised rent. In 2019, the policy was further enhanced and extended to all members of raiSE.


We also expanded the scheme to benefit SG Enable-supported Inclusive-Hiring Businesses (IBs), which hire persons with disabilities/ persons with special needs making up more than 20% of theirmanpower on premises.  

 

Q2 Will there be a cap on the number allocated each year, why? 


A2 There will be a cap of about 30 premises allocated each year to keep the scheme sustainable and to retain other HDB shop spaces for other businesses.

 

Q3 Can existing beneficiaries on board the enhanced scheme (e.g. to enjoy the additional rental discount)? 

 

A3 Yes, existing beneficiaries will enjoy the 30% rental discounts at their next tenancy renewal if they continue to deliver good social outcomes in the existing HDB premises. 

 

Enhanced Entrepreneur Scheme

HDB's Enhanced Entrepreneur Scheme encourages start-ups or existing businesses with innovative and productive business models to set up businesses in the HDB heartlands. These enterprises will refresh and enliven our HDB neighbourhood offerings.

The Entrepreneur Scheme was first introduced in 2018 to encourage start-ups or existing businesses with innovative and productive business models to set up businesses in HDB’s new generation neighbourhood centres (NCs) by allocating them HDB shop spaces.


HDB will work with Enterprise Singapore to enhance the Entrepreneur Scheme by identifying promising and innovative entrepreneurs to set up businesses in the heartlands and assessing their eligibility to do so. This will help to refresh and boost the range of goods and services offered in HDB estates.  


More support will be provided for budding entrepreneurs. Eligible start-ups will benefit from a 10% rental discount for their first 3-year tenancy. They will also be allocated HDB shop spaces beyond new NCs. This will allow start-ups to operate from HDB shop spaces located in existing NCs and precinct clusters. As HDB’s Enhanced Entrepreneur Scheme complements EnterpriseSG’s Heartland Innovation & Transformation Programme, interested entrepreneurs may submit an application to EnterpriseSG. More details can be found here and interested parties may also reach out to EnterpriseSG at HED@enterprisesg.gov.sg.

Pro-business measures for shop tenants

If you are our shop tenant, we have the following assistance measures for you.

E-Payment Solution for Coffee Shops

HDB and Enterprise Singapore have appointed NETS as the master acquirer to provide e-payment solution in coffee shops.

With this solution, coffee shop operators can accept payment from 20 payment schemes without needing to liaise with different individual payment schemes and acquirers. Payment transactions will be credited directly into your bank account within one day after the close of business for most payment schemes, and within two days for transactions via American Express, Mastercard and Visa. Transaction receipts will be consolidated into a single report for your convenience. The e-payment terminal can also be integrated with your point of sales system for better tracking of sales performance and consumer behaviour.

You will enjoy a low merchant discount rate (MDR) of 0.5% for monthly payment transactions, which is below the average industry MDR of 2% to 5%. Operators who sign up before August 2020 will enjoy a MDR of 0% and a waiver of the e-payment terminal rental fee.

To sign up, please contact NETS at 6274 1212 or CFCepayments@nets.com.sg.

Rent-free period for renovation works

We aim to facilitate the upgrading of the overall shopping environment in our estates, and in the process, help our shops improve their business viability. Hence, you can enjoy a rent-free period of half a month when you fulfil either of these conditions:

  • Renovate your shop within the 6-month period after renewing your tenancy
  • Renovate your shop in conjunction with the makeover of complexes/ rejuvenation programmes, such as Remaking our Heartland, Neighbourhood Renewal Programme, and Town Council improvement works

To qualify, you must have rented the shop from us for at least 3 years and fall under the following use classes as defined by the Urban Redevelopment Authority - shop, restaurant, amusement centre, and pet shop. Each tenancy can enjoy the rent-free period a maximum of once every 3 years. When you submit the renovation plans and costs to us, the renovation plans should be holistic and give your shop a refreshing new look with:

  • A more attractive shop front design
  • Better internal layout
  • An improved ambience within the shop

Upon approval, you can proceed with the renovation works and will receive the rent-free period after the works are completed and verified.

The rent-free benefit does not cover renovation undertaken to rent out part of your shop. If you assign your shop within 6 months from the completion of the renovation works, you need to return the half-month rent to us.
To apply for the half-month rent-free period, please submit the application form together with the required supporting documents to HDB within 6 months after renewing your tenancy.

Higher rental rebates during upgrading

You will receive a 75%, 50%, or 25% rental rebate if upgrading works are carried out in your shop, block, or precinct respectively. 

In situations where upgrading works have caused business operations to stop completely, you will be given a 100% rental rebate.

Lower electrical upgrading cost

We have reduced the cost to upgrade the electrical loading for our commercial premises. For electrical upgrading to 1 phase 60amps, the charge is $45 per amp, instead of the previous $85. To let businesses of different scales enjoy this benefit, we have also removed the minimum charge requirement.

Staggered rent for newly constructed shops

As HDB builds more shops in new estates to serve our residents, we also help our retailers ease into their businesses in the newly constructed shops. For shop tenants of all newly constructed shops with tender/ e-bidding closing from 1 Aug 2017 onwards, they can enjoy staggered rents, at 80% of tendered rent in the first year and 90% in the second year, before the full tendered rent kicks in during the third year. 

Staggered rent for tenancy renewals

To assist our tenants who renew their tenancy for more than a year, and whose rents are increased by more than 10% at renewal, we will adjust the rents gradually over the renewal period.

% of Rent Increase

1stYear*

2ndYear

3rdYear^

≤ 10%

Market rent (no staggering)

Market rent

Market rent

> 10% to 20%

Up 10% from existing rent

Market rent

Market rent

> 20%

Up 10% from existing rent

Up 20% from existing rent

Market rent

* 1st year if renewal is for a 2-year term
^ 2nd year if renewal is for a 2-year term

You can renew your tenancy for a 1, 2, or 3-year term. You can also choose shorter-term tenancies if you expect market rents to fall over time.

Renting out of shop space

If you would like to scale down your business operations, you can rent out up to 50% of the shop space to 1 sub-tenant.

Instalment plan for tenants in arrears

If you are in financial hardship, you can pay your arrears by instalments.

Change of trade

Since August 2002, you only need to notify us through a standard notification form and submit the administrative fee of $100 (excluding GST) if you would like to engage in an approved trade. Please note that fees for applications are different for rental shops and HDB shopping complexes. If a valuation is required, the MA will advise and collect the amount accordingly. An acknowledgement letter will be issued on the same day and you can start your new trade immediately.

Since 11 March 2011, you can change your trades to non-retail uses, such as offices, office-related trades, showroom, sale of take-away food, and single-operator family restaurant. However, you cannot change trades to uses that will inconvenience residents, such as eating houses and industrial trades.

Higher ex-gratia payment under clearance / Selective En bloc Redevelopment Scheme

The ex-gratia payment will be increased from $48,000 to $60,000 for tenants affected by land clearance or Selective En-bloc Redevelopment Scheme. Shop tenants eligible for ex-gratia include:

  • Tenders before 4 March 1999
  • Assignments before 1 June 1999
  • Businesses fully owned by Singapore Citizens

Reduced rental deposits for discharged bankrupts

If you are a discharged bankrupt who would like to take up an HDB shop, you only need to pay a 1-month rental deposit. You also need not have a personal guarantor. Previously, you would have to pay a 2-month deposit and have 2 personal guarantors.

Home Improvement Programme (HIP)

Besides flat owners, commercial retailers can also benefit from HIP. HIP will help you with common maintenance matters related to ageing premises. HIP works are carried out in a systematic and comprehensive manner to minimise any inconvenience. 

There are 2 main categories of works under the HIP: essential improvements and optional improvements. 

Essential improvements include:

  • Replacement of waste pipes and pipe sockets
  • Repair of spalling concrete and structural checks
  • Upgrading of electrical supply

Optional improvements include upgrading of toilets/ bathrooms, and replacement of the entrance door and gate, and the refuse chute hopper.

 

Pro-business measures for shop owners

If you are an HDB shop owner, we have the following assistance measures for you.

E-Payment Solution for Coffee Shops

HDB and Enterprise Singapore have appointed NETS as the master acquirer to provide e-payment solution in coffee shops.

With this solution, coffee shop operators can accept payment from 20 payment schemes without needing to liaise with different individual payment schemes and acquirers. Payment transactions will be credited directly into your bank account within one day after the close of business for most payment schemes, and within two days for transactions via American Express, Mastercard and Visa. Transaction receipts will be consolidated into a single report for your convenience. The e-payment terminal can also be integrated with your point of sales system for better tracking of sales performance and consumer behaviour.

You will enjoy a low merchant discount rate (MDR) of 0.5% for monthly payment transactions, which is below the average industry MDR of 2% to 5%. Operators who sign up before August 2020 will enjoy a MDR of 0% and a waiver of the e-payment terminal rental fee.

To sign up, please contact NETS at 6274 1212 or CFCepayments@nets.com.sg. 

Lower electrical upgrading cost

We have reduced the cost to upgrade the electrical loading for our commercial premises. For electrical upgrading to 1 phase 60amps, the charge is $45 per amp, instead of the previous $85. To let businesses of different scales enjoy this benefit, we have also removed the minimum charge requirement.

Conversion to 30-year leases

Even if you purchased your shop at a longer lease, you can convert to 30-year leases to reduce your operating costs under the Sale of Tenanted Shops Scheme.

We will buy back your shop for the balance lease and sell the shops at 30-year leases to you. The buy-back price and selling price for the shops are based on the lower of the net original price, or the prevailing market price (less discount if applicable). You will not be eligible for this scheme if you purchased your shop from the open market or by tender (Sale of Shops Scheme). 

Home Improvement Programme (HIP)

Besides flat owners, commercial retailers can also benefit from HIP. HIP will help you with common maintenance matters related to ageing premises. HIP works are carried out in a systematic and comprehensive manner to minimise any inconvenience.

There are 2 main categories of works under the HIP: essential improvements and optional improvements.

Essential improvements include:

  • Replacement of waste pipes and pipe sockets
  • Repair of spalling concrete and structural checks
  • Upgrading of electrical supply
Optional improvements include upgrading of toilets/ bathrooms, and replacement of the entrance door and gate, and the refuse chute hopper.

Enterprise Singapore

Learn more about how Enterprise Singapore can help your business grow.

Enterprise Singapore is the government agency championing enterprise development. The agency works with committed companies to build capabilities, innovate and internationalise.

It also supports the growth of Singapore as a hub for global trading and startups, and builds trust in Singapore’s products and services through quality and standards.

Find out how Enterprise Singapore can work with you to grow your business.

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