Industrial and commercial property owners are expected to get 40 percent tax rebate, valued at $800 million this year.
Such rebate is given as part of the $20.5 billion austerity programme endorsed by Finance Minister Tharman Shanmugaratnam to assist many Singaporeans in reducing costs and job cuts.
He said the government is steadfast in urging landowners to share the rebate to their tenants. With the rebate, he is anticipating that landlords will make the necessary adjustments in the rental and give more flexibility when arranging leasing requirements and payment schedule in relation to the ongoing financial crisis plaguing common tenants.
Small enterprises have also experienced the lashes of increased non-negotiable rental agreements inked during the good times but are now falling prey to the effects of the global recession.
Reports claimed that among the 45 interviewed small and medium-sized retailers and restaurant entrepreneurs, five of them have been severely hit for the last six months, four had some of their branches closed and seven are scheduled for closure at the end of their lease contracts this year.
Despite cessation of operations of more than 130 small enterprises last year, the records of the Ministry of Finance showed that some businesses have a sales increase of 25 percent in 2007.
Based on the estimates, Lawrence Leow, head of the Association of Small and Medium Enterprises, said the rebate is an aid with a calculated 4 percent rental adjustment if private landlords would share the savings to the tenants.
Jannie Tay, president of the Singapore Retailers Association, hopes that the rebate will give a sufficient sum of around 30 percent to 50 percent decrease in common rental rates for enterprises.