The_King

SINGAPORE: Tsutomu Ogura has resigned as head coach of the Singapore national football team due to personal reasons, said the Football Association of Singapore (FAS) on Tuesday (Jun 24).

Ogura informed FAS of his decision several weeks ago as he needed to return to Japan for "pressing personal matters".

"Since then, the FAS executive committee has been in close consultation with Mr Ogura to explore various avenues to facilitate his continued tenure," said FAS.

"Despite collective efforts and a mutual desire to sustain the working relationship, the nature of the personal issues involved ultimately made it untenable for him to continue."

FAS has appointed the former head coach of BG Tampines Rovers Gavin Lee as the interim replacement.

The search for a new permanent head coach "who possesses the vision, expertise, and leadership qualities to elevate Singapore football to the next level" is actively underway, said FAS.

"The FAS respects Mr Ogura’s decision and extends its sincere appreciation for his professionalism, commitment, and contribution to Singapore football during his time at the helm," said FAS.

"We wish him and his family well in their future endeavours."

Ogura was a former assistant coach of the Japanese national side and the third consecutive Japanese head coach of the Singapore team, replacing Takayuki Nishigaya in February 2024.

His 16-match stint with the Lions comprises five wins, three draws and eight losses.

Two of those victories came in the last two matches, when Singapore beat Maldives in a friendly and Bangladesh in an Asian Cup qualifier.

SINGAPORE: With commercial rental costs in Singapore making headlines and generating animated discussions online, alongside reports of food and beverage shops shuttering, some segments of the public have pointed to businesses of mainland Chinese origin as the culprit.

A tenant cooperative has called out foreign players, while several local businessmen interviewed by CNA were convinced that a perceived influx of mainland Chinese retailers setting up shop here has raised rents.

But Chinese F&B brands operating in Singapore and approached by CNA denied paying higher rents; while analysts offered a more nuanced picture with one saying it was simply "market dynamics" at play.

“These Chinese players seem to have (an) endless supply of ammunition, of cash,” said Mr Andy Hoon, chairman of Bosses Network, an informal group made up of local businessmen.

If the rental is expected to be between S$30 and S$40 per square foot, Singaporean tenants would likely offer around S$36 to S$38, he said. A Chinese brand, however, might offer S$45, he claimed.

Private mall operators in Singapore typically do not share data on winning bids for shop spaces.

Mr Hoon said his contacts from China are of the mindset that they would need to offer higher rental to win bids, and that they are willing to do so to test out the market in Singapore – which they view as a stepping stone to the rest of the region.

 

 

 

Mr Andrew Tjioe, president and CEO of TungLok restaurant group, said: “I wouldn’t say all of them – some of them are willing to pay more (rents) because … profit-making is not their primary motive. They just want to have a presence here so that they become international, (it’s) more for branding.”

Orchard Road, Marina Bay Sands and VivoCity are malls targeted by bigger brands, he said.

Mr Ang Yuit, president of the Association of Small and Medium Enterprises (ASME), said Chinese brands are here to invest.

“So they can pay higher (rent), because they are trying to get market share,” he said.

CHINESE WAVE

Major chains like Chagee and Haidilao declined CNA’s request for comment for this article.

But Nong Geng Ji, a brand with more than 100 outlets in China, said it "does not support nor engage in the practice of paying above-market rents to secure shop spaces during expansion”.

The Hunan-style chain is managed and operated by Singapore-based Skyline Catering.

“We firmly believe that winning customers’ loyalty must be grounded in the exceptional quality of our ingredients and the authenticity of our flavours, not through aggressive real estate tactics,” said a spokesperson.

Tanyu, which serves Chongqing-style grilled fish, said the increased competition for limited prime retail spaces is likely to be pushing rent higher.

The brand, which entered Singapore in 2017 and is also managed by Skyline, said there has been a “more significant increase” in rent in the last two years, especially in 2024.

A spokesperson added that the F&B scene here has become increasingly diverse, and acknowledged that mainland Chinese brands have expanded their presence.

Besides Haidilao, which opened its first restaurant in Singapore in 2012, more recent entrants include the likes of ice cream chain Mixue, coffee chain Luckin and Sichuan brand Tai Er.

This is not the first time Singapore is seeing a wave of foreign-origin eateries, said Mr Ernest Tan, a lecturer at Singapore Polytechnic’s business school.

“About 20 years ago, we saw that there was a wave of Japanese restaurants coming in … and then later we (saw) Korean restaurants coming in as well,” he said.

He predicted that at some point, the number of Chinese restaurants opening would plateau and maybe even decline.

As of June 2024, there were 32 Chinese brands operating 184 shops in Singapore, according to research firm Momentum Works.

The company’s data also showed that the number of Mixue outlets in Singapore tripled from 10 in 2023 to 31 in May 2025. For Luckin, there were 30 stores in 2023, compared with 63 as of May this year.

 

 

THE COST OF OCCUPANCY

But is there a link between the increased presence of these Chinese brands and rising rents?

The debate over rental costs at large in Singapore, while ongoing for some time, was pushed to the fore after Flor Patisserie, a bakery in Siglap, announced it would close at end-June or early July because its landlord had asked for a 57 per cent increase in rent.

The Singapore Tenants United for Fairness (SGTUFF), a cooperative representing more than 700 business owners, then released a white paper calling for policies to address the issue of “new and foreign players” with deep pockets and low-cost supply chains entering the Singapore market. SGTUFF also noted that these businesses were willing to pay premium rents.

In response to CNA’s queries, SGTUFF said it was not privy to rental negotiations and details of other tenants including and especially foreign businesses. 

“When you see a lot of local tenants exit their shops complaining about high rentals or high rental renewals, and then you see a lot of these spaces being filled quickly by a new tenant, do you think that the new tenant is paying higher or lower rental than the previous tenant?" the group said.

Real estate group CapitaLand's chief strategy officer Ervin Yeo subsequently posted on LinkedIn that occupancy cost – which can be a proxy for rent affordability – was sustainable.

Occupancy cost is measured by taking rent as a percentage of total sales, and Mr Yeo suggested that a figure of less than 20 per cent was acceptable. He said the occupancy cost for CapitaLand Integrated Commercial Trust and Frasers Centrepoint Trust – also a real estate investment trust and mall owner – were at 17.1 per cent and 16 per cent respectively.

“This suggests that the revenues of our tenants are at a sustainable level relative to their rents,” he wrote.

In response to CNA’s queries, Frasers Property said it focuses on creating inclusive, community-centric retail environments.

“We refresh and curate our tenant mix to align with the demographics and needs of the local community, customers’ preferences and feedback, as well as evolving retail trends and concepts,” a spokesperson said.

“We remain committed to maintaining a balanced and diverse retail ecosystem that fosters strong tenant partnerships and enhances the overall shopping experience.”

 

The Urban Redevelopment Authority (URA) has reported that rentals of retail space decreased by 0.5 per cent in the first three months of the year, compared with a 0.6 per cent increase in the previous quarter.

SGTUFF, however, said such data points tended to “mask the real issues” for small local businesses, because they take into account big players that are doing well. 

“It is industry knowledge that most, if not all, of these big tenants enjoy much lower rental rates and favourable rental terms compared to small players."

It described occupancy cost as a “very rough proxy measure” that must be taken with a “big pinch of salt”.

“The true measure of healthy occupancy cost is rental (and) profits,” said the collective.

SGTUFF added that URA's data aggregated “all retail spaces in all developments across all floors for an entire region”. 

“Just because URA data shows overall rental drop does not mean at all that rentals have dropped for small businesses in F&B and retail.”

DEMAND, SUPPLY AND "EAT YOUR LUNCH"

The broader picture shows that rents have risen more in recent times compared to the years before the COVID-19 pandemic, said Mr Alan Cheong, executive director for research and consultancy at Savills.

“The rise in rents over the past three years is probably due to the pandemic recovery process,” he said. 

Some “prime frontage shops” have seen rents return to pre-pandemic levels, but that is not the case for overall rents for malls, Mr Cheong added.

Mr Desmond Sim, CEO of real estate consultancy ETC, said both local and foreign tenants alike would be willing to pay higher rents for a good location, if crucial to the brand. 

“It’s still up to the market dynamics, it’s still demand and supply, generally speaking,” he said.

Mr Sim added that a Singapore brand trying to break into an overseas market would also be willing to pay top dollar to set up a flagship store.

Locally, a Chinese brand looking to strengthen its presence in Singapore may put in a higher bid; while a local brand with enough recognition and exposure may put in a lower one. The local brand will hence be outbid by the Chinese brand that has a greater need.

This makes it seem like prices are being jacked up, he said.

Yet paying a higher rate is unlikely to be “market practice” because tenants would not want to overpay for space, said Mr Sim.

“It would be more accurate to say that the arrival of mainland Chinese F&B restaurants has helped fill spaces that could otherwise be left vacant by local operators," said Ms Sulian Tan-Wijaya, executive director for retail and lifestyle at Savills Singapore.

"Rather than to say that rents have increased because of the influx of mainland Chinese F&B businesses.”

She acknowledged that rents have mostly increased in prime retail developments that are sought after by overseas brands.

But F&B operators from China that Savills works with are discerning about locations and rents.

“They would not be prepared to pay more than what they would consider feasible,” she said.

 

 

Beyond rental costs, some noted that Chinese F&B brands have also brought different strategies and approaches into the Singapore market.

In China, the customer service journey starts even before you have ordered your food, said Mr Tan, the lecturer.

“From start to end, they will take care of you, you don’t feel that your wait is too long … you can have unlimited snacks, you can have water."

That model has been imported to Singapore, and people have taken notice, he added.

Mr Hoon of Bosses Network also recognised that Chinese brands often offer "endless" appetisers, ice cream and other freebies.

“Singaporean businessmen need to counter (that),” he said. “They might use the same system, or try to lower their costs, or give a bigger discount to keep their loyal customers.”

Mr Yeo of CapitaLand wrote on LinkedIn that the Chinese retail scene was hyper-competitive.

“Everyone is a champion second-mover and will eat your lunch if you don’t move fast enough,” he said. Chinese F&B operators see themselves as being in the supply-chain business instead, and care a lot about efficiency.

He said managers there were graded on the interval between a customer being seated and the first plate of food arriving at the table.

”When the Chinese brands bring their operating juggernaut to our Singapore scene, there is some understandable nervousness by our local brands,” said Mr Yeo. 

“But I believe that the Singapore spirit is to face competition with a ‘bring it on’ mentality, not a ‘if you can’t beat 'em, ban 'em’ mentality. It’s our home ground after all.”

ASME’s Mr Ang too said brands that make it out of China to set up shop in Singapore were “highly evolved” and tended to be competitive and aggressive. 

“(We) can learn in terms of their ability to compete and how optimised they are,” he acknowledged. “These are good points to learn from.”