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The Singapore Business Federation introduced a Code of Conduct for Leasing of Retail Premises in Singapore ("COC") on 26 March 2021. The COC aims to provide a set of guidelines for landlords and tenants of Qualifying Retail Premises to enable a fair and balanced position in lease negotiation, and to provide such landlords and tenants with a governance framework to ensure compliance with an accessible dispute resolution framework.
The COC is effective from 1 June 2021, and it is anticipated that the Government will work closely with the stakeholders to turn the code into legislation. This Update summarises the key features and principles of the COC.
As governments across the world begin to ramp up their vaccination plans, travel will return. We do anticipate some caution in the near term as borders reopen and the mechanism to facilitate mass travel is formalised.
While there will be changes and more emphasis on factors such as hygiene, our inherent wanderlust, relatively cheap cost of travel and pent-up demand will drive our prediction of a V-shaped recovery for the sector over the next three to four years.
Industrial market sees recovery
Industrial activity was observed to be relatively robust as strata sales and vacancy rates improve gradually but uncertainties remain.
In Q4/2020, the economy contracted by 2.4% YoY, moderating from the 5.8% contraction in Q3/2020. This was largely attributed to the 10.3% YoY expansion in the manufacturing sector, extending the 11% growth in Q3. The growth was led by output expansion in the electronics, biomedical manufacturing, precision engineering and chemicals cluster. Nevertheless, the COVID-19 pandemic still took a toll with Singapore’s economy contracting by 5.4% in 2020, a reversal from the 1.3% expansion in 2019. However, the manufacturing sector posted growth of 7.3%, in contrast to the 1.5% contraction in 2019. This was supported by expansion in the biomedical manufacturing, electronics and precision engineering clusters, arising from strong demand for pharmaceutical products, semiconductors and semiconductor manufacturing equipment respectively. With the pickup in manufacturing demand following the reopening of the economy, the manufacturing sector ended on a positive note in 2020. In December, the overall Purchasing Manager’s Index (PMI) remained in expansionary mode for a sixth straight month. Similarly, manufacturing output grew by 14.3% YoY in December, bringing overall growth to 7.3% in 2020. The expansion in December was supported by the electronics, chemicals and precision engineering. On the other hand, after an increase of 6.5% in Q3/2020, non-oil domestic exports (NODX) recorded a 0.5% YoY decline in Q4/2020. Nevertheless, NODX expanded by 4.3% in 2020, a reversal from the 9.2% drop in 2019. Despite global economic uncertainties, the overall growth in 2020 was led by increased shipments of electronics and non-electronics products.
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