MPs such as Tin Pei Ling, Lim Biow Chuan, Jessica Tan, and Pmg Eng Huat had called for lower rentals to help SMEs.
I applaud them for raising this issue. I believe for SMEs, rental costs are substantial to their whole operations. If we can keep it steady if not reduce rental levels, we may face lower risks of higher inflation – whereby SMEs pass the costs on to consumers. So lower rental costs can benefit SMEs and consumers alike.
Government can suggest more rental rebates over the next few years, as suggested by MPs. This, I think can be explored.
However, I’m skeptical if they can push to keep rentals steady. Is it possible that some SMEs do not rent their premises from government, and these private owners may not move in tandem with the calls to steady rental levels?