Landlords should work together with their tenants to ensure they can best share the benefits of the Resilience Budget for long-term sustainability.

Trade and Industry Minister Chan Chun Sing said this on Tuesday afternoon, adding that the government will also take steps to "make sure" that landlords pass on the property tax rebate they will be receiving in the Resilience Budget to their tenants.

Landlords & tenants should view each other as "long-term partners"

Speaking to reporters at a doorstop interview, Chan acknowledged that different businesses had different cost structures.

He said that a typical F&B venture would pay about 20 per cent of its total costs in rentals, with other expenses like manpower costs, materials, utilities and overheads.

Chan said that the Resilience Budget had components to deal with the various costs. For example, the manpower cost is addressed by the boosted Jobs Support Scheme, where wages of workers are offset.

But it is difficult for the government to mandate certain formulae or approaches to ensure rebates are passed on to tenants, because of the existence of varying types of rental arrangements that currently exist between landlords and tenants.

However, Chan said the government's economic agencies are working to bring together landlords and tenants to decide how to share the rebates that are given.

Chan said both sides should ultimately view each other as long-term partners, though, and not take a short-term view.

"The spirit must be that in good times, we share the benefits. In tough times, we share the pain. If both the landlords and tenants can work together, we are much nearer to a solution. But this is still a work in progress."

Zero property tax rebates announced last week

The Resilience Budget, announced by Deputy Prime Minister Heng Swee Keat on Mar. 26, included a zero property tax rate for qualifying commercial properties for 2020.

Businesses that operate in other non-residential properties, such as offices and science parks, will receive a 30 per cent rebate.

In his speech, Heng urged landlords to pass on the property tax rebates to their tenants.

"Many businesses have pointed out that it will be a lose-lose situation if landlords do not support their tenants. After all, if tenants fail, the properties will be empty."

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Top image from Fasiha Nazren.