Monthly Archives: March 2010

30% hike in rent at 5 wet markets

Posted on 24 Mar 2010 | Comments Off on 30% hike in rent at 5 wet markets

STALLHOLDERS at the five wet markets taken over by Sheng Siong last year will have to pay 30 per cent more in rent from next month.

The stallholders at the five markets – in Serangoon, Bukit Batok, Fajar Road and two in Choa Chu Kang – were informed of the increase by the supermarket chain earlier this month.

Stallholders The Straits Time spoke to said they were handed one-year contracts to sign. Currently, they pay about $1,500 to $3,000 in rent and are on a two-year contract.

Sheng Siong’s managing director Lim Hock Chee said the chain had no choice but to increase rental rates, as it had to pay bank interest fees, property tax and maintenance fees after buying the five wet markets for about $25 million.

Many stallholders feel that the increase is too high, with some even saying that they will give up their businesses. Mr Quek Tian Poh, who sells religious goods at the wet market in Serangoon, said he is loath to pass the increased costs down to his customers as they may stay away.

A group of tenants were anxious enough to approach their MP, Mr Seah Kian Peng, for help on Monday. Their request: That the chain stagger the rent increase and increase the contract duration to two years.

The news comes after Sheng Siong’s controversial purchase of the wet markets in December. The chain had wanted to convert the wet markets into air-conditioned markets, triggering public concern about the shrinking number of wet markets in Singapore.

Government leaders stepped in to say that the premises could not be turned into supermarkets, and under that condition approved the sale.

Source : Straits Times – 24 Mar 2010

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Profits should not be charities’ aim

Posted on 24 Mar 2010 | Comments Off on Profits should not be charities’ aim

I REFER to last Saturday’s report, “Charity commissioner questions City Harvest” and the letter from the Ministry of Community Development, Youth and Sports, Urban Redevelopment Authority and Inland Revenue Authority of Singapore, on the same day (“Drawing the line on commercial deals”), which said: “A charity’s main purpose is to provide public benefits through its charitable activities.”

Churches like other religious organisations are classified as charitable institutions. The core business of a religious community is to cater to the religious needs of its members and to provide charity to the poor and needy. Funds from members and the public are solicited primarily for that purpose. Its purpose is not profit-making and accumulation of financial assets for further investment in the business and commercial sectors.

Historically, business activity in printing and publishing, religious supplies, media and communication is meant to enhance the religious outreach. The investment of surplus funds is directed to equity blue chip stocks and rental of properties. As has been rightly pointed out by the Government they are “not to subject the charity’s assets and resources to unacceptable risks”. And that includes speculating in the stock market. It is further questionable for the religious community to set up a separate business entity in order to avoid taxation.

Whatever surplus funds the religious institution gets each year is not meant to be accumulated for the purpose of engaging in business and commercial activities. Exceptional risks are taken in profit-making activities and they deviate from the nature of charitable institutions.

The relevant authorities should provide regulations and enact legislation to address this situation.

Yap Kim Hao

Source : Straits Times – 24 Mar 2010

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