Woodlands heartland retailers fear RTS Link impact as sales slow and costs rise
They are calling for measures such as rental support, more community events and the continuation of CDC vouchers to help sustain their businesses.
For some merchants in Woodlands, business has become increasingly challenging.
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SINGAPORE: Heartland retailers in Woodlands are worried that the Johor Bahru-Singapore Rapid Transit System (RTS) Link could draw more shoppers across the Causeway, adding to pressures from slowing sales, rising costs and weaker consumer spending.
With the cross-border rail link slated to begin operations next year, they are calling for measures such as rental support, more community events and the continuation of Community Development Council (CDC) vouchers to help sustain their businesses.
Their concerns come as a government task force studying the impact of the cross-border rail link is expected to release its recommendations soon.
RISING COSTS, SLOWING SALES
For some merchants in Woodlands, business has become increasingly challenging.
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Mr Jacky Ong, a partner at Keat Hong Furniture Trading, said: “It is quite hard for us because (even though) the RTS is not yet open, our sales have already dropped.”
He noted that more consumers are turning to online purchases, and he believes the RTS Link could further divert spending to Malaysia.
“In the future, maybe (after the RTS) opens, it will drop more – maybe by 20 to 30 per cent. So we are trying ways to see how to maintain or cut costs,” he added.
“If the rent is too high and we all cannot survive, we’ll have to let go of our shop.”
Mr Ong expects more Singaporeans to cross into Johor Bahru for shopping once the rail link becomes operational and hopes the government can provide more support to local businesses.
“After you deduct our rent, our costs (and) our workmanship, we can’t earn much,” he said. “We also have families to support.”
At Guan Chuan Chan Medical Hall, owner Ken Wong said sales have fallen by about 18 per cent this year.
“This is mainly because prices have gone up due to the war,” he said. “The cost of goods has increased across the board.
“Customers are also more cautious when spending money, so they are not as willing to buy things as they were before.”
Despite concerns, Mr Wong remains cautiously optimistic about the opportunities the RTS Link could bring.
“Since we’re in the northern part of Singapore and very close to Johor Bahru, it’s more convenient for people to go there,” he noted.
“However, I hope it can become a win-win situation, where people from Johor also come to Singapore to shop. That would be the ideal outcome.”
CALLS FOR CONTINUED SUPPORT
Retailers said help with business costs would go a long way in helping them stay afloat.
Some pointed to CDC vouchers as a key driver of spending, with some estimating that the scheme has boosted sales by as much as 20 per cent.
“As retailers, our biggest concern is utilities and rent. If electricity costs don’t increase further, or if there can be some discounts, that would be the best,” said Mr Wong.
“We have to accept that times are changing. We need to adapt and keep up with the changes.”
Other merchants suggested measures such as free lunchtime parking and more community events to attract shoppers and increase footfall.
Woodlands Mart, a neighbourhood mall in the area, has seen visitor numbers rise during events held at its atrium.
Retailers there said more of such activities could help raise awareness of the heartland mall and draw more visitors, particularly once the RTS Link opens.
Sembawang West Member of Parliament Poh Li San acknowledged that some businesses may be more affected than others when the RTS Link opens.
“We will take this chance to work with them to see how we can help them, in terms of managing their business costs, (bringing) more footfall … (and) items that will also benefit the residents.”
Woodlands Mart, which is nearly three decades old, is also preparing for the future with plans for a facelift.
These include upgraded escalators, toilets, and, possibly, a sheltered event space, alongside efforts to refresh the mall’s tenant mix.
Grassroots leaders are exploring ways to inject more vibrancy into the area.
Ms Poh said: “I think all in all, it is about how we can really create hyper-local kinds of activities that are very well coordinated with their lifestyles … to make it more convenient and comprehensive for our residents.”
Source: CNA/ca(mp)
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