Rent growth in heritage districts tracks central retail areas, say authorities

Key Concepts

• Heritage Businesses: Businesses with significant cultural or historical value, often facing challenges due to modernization and rising costs.
• Rental Trends: The increasing cost of commercial property in historically significant districts like Kamong Glam, Little India, and Chinatown.
• Government Support Measures: Initiatives aimed at preserving heritage businesses, including grants, updated guidelines, public registers, and marketing assistance.
• Precinct Diversity: Maintaining a variety of businesses within heritage districts, preventing homogenization through souvenir shops or similar establishments.
• Skilled Labor Shortage: Difficulty in finding and employing workers with the specialized skills needed for traditional crafts.

Preserving Heritage Businesses in Singapore: Kamong Glam, Little India & Chinatown

This report details the challenges faced by heritage businesses in Singapore’s Kamong Glam, Little India, and Chinatown districts, and the government’s response to concerns about rising costs and maintaining cultural authenticity. The core issue revolves around balancing economic pressures with the need to preserve unique cultural identities.

Rental Increases and Economic Pressures

Over the past two years, median rents in these historic districts have seen moderate increases: approximately 2% per year in Kamong Glam, 2.5% in Little India, and 1% in Chinatown. These increases are described as being “broadly in line with retail rents in the central area,” suggesting the issue isn’t unique to these precincts, but particularly impactful due to the nature of the businesses operating within them. A case study is presented of an 80-year-old Randang business that nearly closed three years ago due to rising rents. It was only through intervention by authorities and a local precinct group, facilitating relocation, that the business survived. This business has since benefited from a $40,000 government grant to modernize operations, utilizing new machinery for vacuum packing and steaming, allowing for increased efficiency and a shift in worker roles. As stated by a representative of the business, “We can do it the traditional way, but of course, you know, time has changed. We are now having younger generation of people in the kitchen to help us cook.”

Government Initiatives & Future Plans

A government task force is actively working with these districts to address preservation concerns. Specific measures include updated guidelines for Kamong Glam, scheduled for implementation in June 2025, which will prohibit the opening of new souvenir shops. This is a direct response to concerns highlighted in a January CNA report regarding declining shop diversity. Further support is planned through the National Heritage Board, which will develop an online portal – a public register of heritage businesses – expected to launch in mid-2026. This register will be supported by marketing and outreach efforts to increase visibility and patronage.

Calls for Additional Support

Despite these initiatives, businesses are advocating for more substantial and recurring assistance. Specifically, they are requesting recurring financial help, including rental caps and subsidies. Businesses also emphasize the need for support in marketing and funding for events that attract visitors. A representative from Kamong Glam highlighted the success of their Ramadan bazaar, which attracts “almost a million visitors” annually, and the need for investment – “either in kind or monetary” – to sustain and expand such events, leveraging “proper marketing social social media also PR.”

Specific Concerns in Little India

Businesses in Little India are facing a unique challenge: a shortage of skilled labor for traditional trades. The example of jewelry making is used to illustrate this point. The process is highly labor-intensive, requiring specialized skills and significant time – “one jew piece of jewelry might take several weeks or several months to make.” Consequently, businesses are requesting “looser rules to bring in overseas workers with skills to preserve traditional trades,” as the current regulations make it difficult to attract and employ the necessary expertise.

Government Encouragement & Accessibility

The government maintains an open-door policy, encouraging heritage businesses to proactively seek assistance when needed. There is no specific formalized program beyond the grants and initiatives mentioned, but businesses are directed to approach authorities for support.

Synthesis

The report underscores the delicate balance between economic development and cultural preservation in Singapore’s heritage districts. While the government is implementing measures to support these businesses, including financial grants, updated guidelines, and a public register, concerns remain regarding the long-term sustainability of these enterprises. The need for recurring financial assistance, particularly rental support, and addressing the skilled labor shortage in specific trades like jewelry making, are key takeaways. The success of initiatives like the Kamong Glam Ramadan bazaar demonstrates the potential of targeted marketing and event funding to drive foot traffic and support local businesses.