China is 2nd largest owner of retail businesses in S'pore, 89% S'pore-owned: Gan Kim Yong

Three per cent of registered retail business entities operating in Singapore have owners from China, Minister for Trade and Industry Gan Kim Yong said on Jan. 12.

Gan, who is also Deputy Prime Minister, was responding to a parliamentary question filed by Pasir Ris-Changi GRC Member of Parliament (MP) Valerie Lee on the statistics on the country of origin of retail shops operating in Singapore.

89.7 per cent have Singapore owners

In his written reply, Gan provided a breakdown of the ownership of registered retail business entities operating in Singapore.

The total number of retail business entities is 45,361, based on data from the Accounting and Corporate Regulatory Authority.

Out of these, 89.7 per cent, or 40,931, are owned by Singaporeans.

Three per cent, or 1,390, are under Chinese ownership.

Malaysia and India each make up 0.9 per cent of ownership.

Vietnam, the United Kingdom, Japan, and Australia each make up 0.4 per cent.

Indonesia and the United States own 0.3 per cent of retail businesses in Singapore each, while the Republic of Korea makes up 0.2 per cent.

The remaining 3.1 per cent are from other countries of origin.

The ownership of a business entity is determined by the shareholders who collectively hold more than 50 per cent share of the business entity.

For individual shareholders, classification is based on residency for Singapore residents and on nationality for non-residents.

For corporate shareholders, their country of origin is determined by their place of incorporation.

If no group of shareholders hold more than 50 per cent of the business entity, it is classified as "other foreign business entities".

Support for local businesses

In her question, Lee also asked Gan about the measures in place to support local businesses competing against overseas chains with significant financial backing that may drive up rents and associated costs.

Gan pointed out that Enterprise Singapore, an agency under the Ministry of Trade and Industry, supports local retailers through various schemes that help SMEs.

These include the Productivity Solutions Grant, the Enterprise Development Grant, and the Market Readiness Assistance Grant.

"The Government also supports more targeted programmes that encourage local retailers to innovate and provide differentiated offerings," Gan said, citing examples like the Retail Maverick Challenge and the Design Orchard Retail Singapore.

"The Government will continue to work with industry stakeholders and key trade associations, such as the Singapore Retailers Association (SRA), to explore how else we can support our local retailers," the Minister added.

Top image via Unsplash