RELEVANCE AND APPLICABILITY OF PERCENTAGE RENTAL SCHEME IN SINGAPORE

Abstract

The Percentage Rental Scheme is a rental system that can adjust to economic changes. It was introduced in Singapore in the mid-1980's as a form of innovative marketing strategy to overcome the prevailing market depression. This dissertation aims to analyse the relevance of this leasing concept in the local context, and particularly, its role in the future. From the case studies conducted on Marina Square, Liang Court, Forum Galleria and Wisma Atria, it was found that, generally, the system is still not very well received by local retailers. Hence its application at the present moment is rather limited. However, this scenario is likely to change as there are indications, like influx of foreign retailers and the trend towards single-ownership for shopping centres, which seem to suggest that there is a scope for a more widespread implementation of the scheme in the near future.