Monitoring Market Concentration by Well-capitalised Foreign Retail Brands in Singapore
Ministry of Trade and IndustrySpeakers
Summary
This question concerns potential market concentration risks and retail homogenisation from foreign brands, as well as strategies to ensure local businesses remain competitive. Minister for Trade and Industry Gan Kim Yong replied that the Competition and Consumer Commission of Singapore monitors concentration risks, though no current anti-competitive concerns exist. He outlined various support measures, including the Enterprise Development Grant, Productivity Solutions Grant, and business advisory services through the Heartland Enterprise Centre. Initiatives such as the Retail Maverick Challenge and Design Orchard Retail Singapore also help local brands innovate and gain exposure through shared facilities. Finally, the Government supports heartland retailers via Community Development Council and SG60 vouchers, which have generated $2.127 billion in local spending since 2020.
Transcript
31 Mr Yip Hon Weng asked the Deputy Prime Minister and Minister for Trade and Industry in respect of the aggressive expansion of well-capitalised foreign retail brands in Singapore (a) whether the Ministry monitors market concentration risks where the actual scale may not be reflected in official statistics; (b) whether this risks retail homogenisation; and (c) what strategies ensure that local businesses representing Singapore's culture are not displaced by this trend.
Mr Gan Kim Yong: As an open economy, Singapore benefits from the presence of both local and foreign enterprises. A diverse mix of local and international retailers enhances consumer choice and contributes to a vibrant marketplace.
The Competition and Consumer Commission of Singapore conducts market studies where necessary to identify concentration risks that may affect the efficient functioning of markets in Singapore. Currently, there is no indication of anti-competitive concerns in the local retail market.
The Government's approach is to maintain an open and competitive retail market in Singapore, while supporting local retailers in strengthening their capabilities, innovating and offering differentiated products to remain competitive.
Local retailers can tap on schemes, such as the Enterprise Development Grant and Productivity Solutions Grant, to enhance productivity and transform their businesses. Heartland businesses can utilise the Enhanced Visual Merchandising Programme to refresh their storefronts and sharpen their marketing positions. They may also approach the Heartland Enterprise Centre Singapore for business advisory services and training.
The Government also provides targeted support to encourage local retailers to innovate and provide differentiated offerings. For example, the Retail Maverick Challenge, an initiative launched by Enterprise Singapore and CapitaLand Investment, supports local retailers in piloting innovative and experiential retail concepts. Another initiative is the Design Orchard Retail Singapore (DORS), managed by the Singapore Fashion Council with support from the Singapore Tourism Board and Enterprise Singapore. DORS is a one-stop retail showcase featuring over 80 local design brands. It provides participating brands with premium retail exposure and cost savings through shared facilities and services.
Additionally, heartland businesses, including local retailers, continue to be supported through the Community Development Council and SG60 vouchers. These vouchers have helped to boost sales and footfall for participating businesses. Over the last four years, $2.127 billion in Vouchers has been spent at participating heartland merchants and hawkers.
The Government will continue to work with industry stakeholders and engage key trade associations, such as the Singapore Retailers Association, to support the growth and competitiveness of local retailers.