SINGAPORE: Heartland businesses near the Johor-Singapore Causeway are experiencing decreased consumer activity as more people travel across the border to Malaysia during the June school holidays.

Retail owners in Woodlands and Marsiling said that while government efforts like the Community Development Council (CDC) vouchers have lessened the impact, they are hoping for more assistance with increased operating costs such as rental hikes.

Ms Noor Adibah, an employee at Aliyah Rizq, a Muslim-owned meat and seafood store in Woodlands North Plaza, said there has been an 80 per cent increase in business since the latest tranche of vouchers were given out last month.

“Before this, the shop (did not have) many people coming because we only (used) payWave or PayNow,” said Ms Noor. “But with the government’s CDC vouchers, more people came to the store.” 

She added that the shop is also promoting its products on social media to help increase sales during this period. 

CDC VOUCHERS

The government on Feb 18 announced that Singaporean households will be given S$800 (US$600) in CDC vouchers to help offset rising costs.

The first S$500 in vouchers were disbursed in May and the remaining S$300 will be given out in January next year. 

Hong Thai Ginseng Birdnest Pte Ltd, a traditional Chinese medicine (TCM) store in Woodlands, said the vouchers have helped to increase its earnings by between S$300 and S$600 last month.

It added that about a quarter of its customers have been paying with the vouchers. 

However, the outlet said that its operating cost has also increased after the COVID-19 pandemic, noting that rental prices in the area have gone up by 10 per cent in the last year.

WELCOME BUT TEMPORARY RELIEF

Some business owners said that while the vouchers spur spending, the relief is temporary and the problem persists in the long run.

Mr Gene Hong, the owner of a clothing store that has been at Marsiling for 16 years, said that footfall has dropped by nearly 25 per cent in June. 

He said more customers usually make use of the school holidays to cross the Causeway to shop in Johor Bahru, where prices are typically lower. 

“I thank the government for giving CDC (vouchers), but it is not enough. Because half (will go) to the supermarket, some of them retail. But how much can they buy? (The amount) … won't cover my rental,” he said.

The 75-year-old said he is opening a hair salon a few units away from his clothing shop in hopes the new venture will provide him with another source of income.

"(Even) at this old age, we will never give up. We are still trying a new trade. But the hair salon (business) is very, very competitive,” noted Mr Hong, adding he plans to offer prices as low as S$6 per haircut to stay ahead of competitors in the area.

LOOKING BEYOND CDC VOUCHERS

Department of Statistics data released last Thursday (Jun 5) showed that retail sales growth in Singapore is slowing, easing to 0.3 per cent year-on-year in April, as compared to 1.3 per cent in March.

Experts said consumers are being cautious with their spending.

“Market conditions, which softened in the first quarter of this year could weaken further … and locals are finding better deals when travelling abroad amid a strong (Singapore) dollar,” said DBS Bank senior economist Chua Han Teng. 

The Ministry of Trade and Industry (MTI) in March announced the creation of a task force to help rejuvenate retail areas and create opportunities in the heartlands, assisting local enterprises to compete with retail offerings in Malaysia.

The task force said it will work with retailers and merchants’ associations, aiming to release its findings and recommendations in 2026.

Mr Hong suggested that authorities could improve the shopping area in Marsiling with festive decorations and organise more activities like carnivals to attract visitors to the estate.

“Maybe during Christmas or Chinese New Year, they can put up some lighting. This is like a dead town,” he said.