Challenges and Opportunities for Singapore’s Heartland Businesses Amid Community Development Council Vouchers

Heartland merchants in Singapore are feeling the dual effects of government support through the Community Development Council (CDC) voucher scheme and rising competition from shoppers crossing the Johor-Singapore Causeway. While many businesses are benefiting from increased foot traffic, some still struggle to adapt, highlighting a divide in the retail landscape.

Growth Amid Challenges

According to Yeo Hiang Meng, president of the Federation of Merchants’ Associations, Singapore (FMAS), businesses in bustling areas are seeing greater success with the CDC vouchers. “The vouchers have been helpful in driving footfall to our stalls and shops, encouraging residents to support local businesses,” he noted. However, these benefits are not evenly distributed. Merchants in quieter locations, like those near Woodlands, report modest impacts.

Positive Responses from Merchants

• Ms Noor Adibah from Aliyah Rizq, a Muslim-owned store, reported an 80 per cent increase in business since the recent voucher rollout.
• The TCM store Hong Thai Ginseng Birdnest Pte Ltd indicated an earnings boost of between S$300 and S$600 last month.

These success stories reveal how savvy businesses are leveraging the vouchers. Merchants that enhance their digital presence—through social media or direct promotions—are more likely to attract consumers. For instance, Aliyah Rizq has embraced social media marketing, resulting in more customers opting to use the vouchers.

Obstacles for Older Hawkers

Conversely, many older hawkers face challenges with digital engagement. Mr Cornelius Tan from the Chinatown Complex Hawker Association highlighted that around 50 to 70 shops in Singapore’s largest hawker centre haven’t joined the CDC vouchers scheme. He stated, “Those are more in retirement mode… comfortable with their lives, and they like physical cash over digital money.”

This reluctance to adapt hampers their ability to attract customers, especially as younger consumers increasingly favour digital transactions.

Consumer Behaviour Shifts

Interestingly, some consumers are finding ways to purchase non-essential items—like trading cards—using the vouchers. Junius Chia from SCC Consignments expressed that many view these purchases as investments, hoping to profit in the future. “It won’t break your bank… There are a lot of shops in Singapore that sell these products,” Chia explained.

Wider Economic Considerations

The broader economic climate also affects retail performance. A recent drop in consumer spending—down to 0.3 per cent year-on-year in April—highlights a cautious approach among locals as they press on with their spending habits. With many seeking better deals in Malaysia, businesses are anxious about maintaining foot traffic during peak times like the June school holidays.

Mr Gene Hong, a Marsiling clothing store owner, revealed a nearly 25 per cent decrease in customers, attributing their absence to trips across the Causeway, where prices tend to be lower. “I thank the government for giving CDC vouchers, but it is not enough… How much can they buy?” he pondered.

Looking Ahead

To support local retailers, the Ministry of Trade and Industry (MTI) has established a task force aimed at rejuvenating retail areas and creating more opportunities in the heartlands. Recommendations are anticipated in 2026, yet, in the interim, older shopping districts may need festive decor and community events to entice customers returning to their local haunts.