Measures

Enhanced Support Measures to help Businesses

On 28 May, 23 July, 24 September and 20 October 2021, the Government announced support packages to help affected individuals and businesses during the periods of tightened measures from 16 May-13 Jun, 22 Jul-18 Aug and 27 Sep-21 Nov. As part of these packages, the Government will provide rental relief to SMEs, to support businesses with rental costs.

Sold shops: Qualifying SMEs in HDB sold shops will receive four tranches of half-month rental relief (total 2-month rental relief) via Rental Support Scheme (RSS) cash payouts from mid Aug-2021 for the first tranche, disbursed by IRAS to the end-tenants / owner-occupiers.

Additionally, under the Rental Waiver Framework for Businesses Impacted by Phase 2 (Heightened Alert), sold shop owners who are landlords must grant a two-week rental waiver to qualifying SME tenants. Qualifying SME tenants would receive a Notice of Rental Waiver from MinLaw via post in Oct 2021, and have to serve a notice, declaration and supporting documents onto the landlords. For more information, please click here.

Rental shops: For tenants of qualifying HDB rental shops, HDB has granted two months of rental relief for June and August 2021 and will grant an additional one-month rental relief for October 2021. Only SME tenants and sub-tenants, in non-office trades, are eligible for waiver.

Details of the additional one-month rental waiver will be shown in the tax invoice for November 2021*, which can be retrieved on tenants' My Business page. More details on the October rental waiver will be made available in a circular in the coming weeks.

*subject to change

Sub-tenants in rental shops: For eligible SME sub-tenants in HDB rental shops, HDB has granted a pro-rated two-months rental relief meant for the sub-tenant, and will grant an additional pro-rated one-month rental relief to be passed down through the master tenant. This is calculated based on the master tenant’s monthly rent to HDB, multiplied by the proportion of Gross Floor Area which is occupied by the sub-tenant. Master tenants are not required to top up the pro-rated rental waiver such that the sub-tenants get 3 whole months of rent-free.

Example of how to compute pro-rated rental relief for eligible sub-tenants:

Master Tenant’s Monthly Rent (exclude GST) paid to HDB	$2,000
Master Tenant’s Trading Area	55 sm
SME Sub-Tenant’s Sublet Area	18 sm
% of Sublet Area	18sm/55 sm = 32.72%
Amount of rent waiver to sub-tenant (1-month)	32.72%*$2,000 = $654.40
Total Amount of rent waiver to sub-tenant (3-months)	$654.403 = $1,963.20*

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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

We introduced the ROS scheme in November 2007, and enhanced it in 2016, 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.

Enhancements to the ROS Scheme

The ROS Scheme comprises the following components:

Co-funding for upgrading of common area
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 (Enhanced)

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.

Previously, shop owners paid 50% of the costs for items that directly benefit the shops, such as awnings, vertical blinds, while HDB and Town Council co-fund the other 50%. For rental shops, HDB and Town Council would bear 100% of the upgrading costs.

From Batch 7 ROS onwards, shop owners will only need to bear 20% of the upgrading cost, capped at $5,000. HDB and Town Councils will bear the remaining upgrading cost, up to $30,000 per shop.

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

Further, 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/artists’ impressions of ROS upgrading.

Co-funding for promotional events

MAs have also been actively organising promotional events to attract crowds to their town and neighbourhood centres. To assist the MAs, we co-fund up to 50% of the expenditure for such promotional events.

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 1st 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 4th to 6th years of the co-funding, the amount will be gradually reduced (4th year – 40%, 5th year – 30%, 6th 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

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. In addition, SMEs members of raiSE can benefit from a 20% discount in monthly rental rates (up to a maximum discount of $12 per square metre) for the first 3 years of their tenancy. Interested Social Enterprises can contact raiSE at enquiries@raise.sg for more details.

Under a pilot scheme, businesses committed to hiring Persons with Disabilities for at least 20% of their manpower on the premises, will also be able to apply for direct allocation of HDB shops or office spaces. Similar to Social Enterprises, SMEs with inclusive hiring practices will also enjoy a 20% discount in monthly rental rates (up to a maximum discount of $12 per square metre) for the first 3 years of their tenancy). Interested businesses can contact SG Enable at opendoor@sgenable.sg for more details.

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.

Revitalisation of Shops (ROS) scheme

We introduced the ROS scheme in November 2007 to help shops enhance their vibrancy and competitiveness. The scheme is made up of 3 components:

Co-funding for upgrading of common area (enhanced)
Co-funding for promotional activities
Rent-free periods for tenants to renovate their shops

MAs can choose to take up all or a combination of the measures.

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	1^st Year*	2^nd Year	3^rd Year^
≤ 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.

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.

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

Revitalisation of Shops (ROS) scheme

We introduced the ROS scheme in November 2007 to help shops enhance their vibrancy and competitiveness. The scheme is made up of 3 components:

Co-funding for upgrading of common area (enhanced)
Co-funding for promotional activities
Rent-free periods for tenants to renovate their shops

MAs can choose to take up all or a combination of the measures.

Lower electrical upgrading cost

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)

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 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.

Housing & Development Board

Measures

Enhanced Support Measures to help Businesses

Revitalisation of Shops (ROS) scheme

Enhancements to the ROS Scheme

Co-funding for upgrading of common area (Enhanced)

Co-funding for promotional events

Rent-free renovation period for tenants

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

Pro-business measures for shop tenants

Support for Social Enterprises and SMEs with Inclusive Hiring Practices

E-Payment Solution for Coffee Shops

Revitalisation of Shops (ROS) scheme

Rent-free period for renovation works

Higher rental rebates during upgrading

Lower electrical upgrading cost

Staggered rent for newly constructed shops

Staggered rent for tenancy renewals

Renting out of shop space

Instalment plan for tenants in arrears

Change of trade

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

Reduced rental deposits for discharged bankrupts

Home Improvement Programme (HIP)

Pro-business measures for shop owners

E-Payment Solution for Coffee Shops

Revitalisation of Shops (ROS) scheme

Lower electrical upgrading cost

Conversion to 30-year leases

Home Improvement Programme (HIP)

Enterprise Singapore

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