SRA seeks $10m 'Scale-Up' as strong dollar drains retail spend

Whilst tourism booms, local retailers are bleeding cash to regional markets. SRA demands a $10m fix.

Retail industry groups have proposed a new “Scale-Up” programme for small and mid-sized retailers as part of their Budget 2026 recommendations, calling for targeted support to help businesses with annual revenue of $1m to $10m grow and compete more effectively.

In a joint statement, the Singapore Retailers Association and four other lifestyle trade associations and chambers announced that the proposed programme would combine capital support with access to partners, mentors, networks, and pilot opportunities, drawing inspiration from initiatives such as the Temasek Foundation’s Amplifier Programme.

The associations said retailers continue to face manpower shortages, rising rentals and operating costs, intensifying e-commerce competition and shifting consumer demand towards sustainable, digital and experiential retail.

They also noted increased spending leakage to regional markets, such as Malaysia, and stated that whilst tourism mega-events have supported hospitality, the impact on retail has been more muted, partly due to the strong Singapore dollar.

Beyond the Scale-Up proposal, the group also called for a franchise and licensing accreditation framework to better track foreign brand entry and manage pressures on manpower and rents.

It suggested refining the use of CDC vouchers by product type, rather than location, to better target cost-of-living support whilst continuing to support local businesses.

On manpower, the associations urged the government to extend the Progressive Wage Credit Scheme beyond 2026 to 2028 and to raise co-funding levels for retail and food services.

They also proposed easing the cost of hiring foreign frontline staff through adjustments to the services dependency ratio ceiling and foreign worker levies, alongside measures to encourage the hiring of mature PMETs aged 50 and above.

On sustainability, the group proposed extending Climate Vouchers to businesses with recognised green certifications, such as B Corp or Green Mark, to accelerate the adoption of sustainable retail practices.