PARLIAMENT: Debate on ministries' budgets: Trade and Industry

Plan to upgrade enterprises in the heartland

Merchant groups to get support to rejuvenate precincts

Heartland enterprises or "mom-and-pop" shops may be considered traditional businesses of a bygone era. But these neighbourhood businesses may soon be getting a new lease of life, thanks to the Heartland Enterprise Upgrading Programme announced in Parliament by Senior Minister of State for Trade and Industry Chee Hong Tat yesterday.

The programme, which will be launched by the middle of this year, will provide support for merchant associations to transform and rejuvenate precincts.

The associations can receive support from Enterprise Singapore, the Housing Board and the Heartland Enterprise Centre Singapore (HECS) to develop and implement four-year action plans, which will cover the upgrading of common area infrastructure, the organisation of placemaking activities and the upgrading of enterprises and workers.

Mr Chee said: "For 2020, I have challenged the HECS to achieve a 'triple five' target - to partner at least five new precincts, in addition to the three they are supporting currently; to help 200 enterprises with their transformation and digitalisation, five times more than the 40 last year; and to train 1,000 workers and shop owners, five times more than the 200 last year."

Last year, the centre supported merchants' associations in Ang Mo Kio, Bedok and Chong Pang in rejuvenation efforts ranging from an e-marketplace for merchants to broadcasting Chinese New Year festivities on social media.

With the new programme, merchant associations will also get more funding support.

For instance, the funding for placemaking activities will be increased from 50 per cent to 70 per cent, and cover a wider range of activities and costs.

Support for the upgrading of common areas will also be raised from 80 per cent to 90 per cent, reducing costs for shop owners.

Currently, under HDB's Revitalisation of Shops scheme, shop owners can get funding help for renovation and to carry out promotional events. However, the support of all shop owners is required for upgrading to proceed.

Mr Chee said the Government is studying easing the requirements, for instance, to allow works to begin if 75 per cent of shop owners express support.

Merchant associations in heartland precincts can apply for the programme. For a start, three associations will be supported under the programme.

Each precinct can expect to receive up to $4.5 million in funding from HDB and Enterprise Singapore, depending on the number and type of shops in each precinct.

Mr Shi Pei Lin, general store manager of Hwa Aik general store in Ang Mo Kio, said he hopes these heartland projects can attract more young customers to these areas.

His store, which has been in business for 40 years, sells a variety of home and kitchen appliances.

"Many of the residents here are old people now and it is hard to attract younger people to come to this area as they're usually at the shopping malls," he said.

"We are now selling products on Qoo10 and Lazada because fewer people come to buy things at our store. We hope the plans can raise the appeal of the heartland so more people will come over."

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A version of this article appeared in the print edition of The Straits Times on March 04, 2020, with the headline Plan to upgrade enterprises in the heartland. Subscribe