Shoppers may eventually look elsewhere

stores in Singapore, and 20 of them are located in malls managed by Reits. Out of the 20, 16 are in suburban malls.

- FROM B1

Mr Alan Cheong, executive director of research and consultancy at Savills Singapore, said: "It appears that Singaporeans' shopping and dining habits are quite homogeneous, and because of this, the risk of having similar tenant mixes, those that have been proven to be successful, turns out to be the least risky option to choose.

"This is markedly so for suburban malls."

Associate Professor Lau Kong Cheen, who is head of the marketing programme at the Singapore University of Social Sciences, said that with a cookie-cutter tenant mix and little differentiation in identity and offerings, malls end up competing more on proximity than uniqueness, with revenue growth and shareholder returns being the primary focus.

One way to achieve revenue growth is by optimising rental income, often leading to aggressive rent increases that push out smaller businesses.

For business owners like those of Princess and Yuen Loong, the threat of higher rents is real. Both shop owners have said they will have to retire if their rent increases sharply when their current leases expire.

Suburban malls were once places where residents could discover unique, locally owned stores that reflected the character and culture of their community. They were places of familiarity, where shop owners knew customers by name and provided personalised services that large chains cannot replicate.