Skip to main content

Advertisement

Advertisement

‘A ghost town’: Orchard XChange shops suffer sluggish sales as landlord SMRT moves to take back units

SINGAPORE — Due to sluggish business and low foot traffic, the Orchard XChange shopping area has become a “ghost town”, tenants there said. They were recently asked to vacate the premises because landlord SMRT has chosen to take back most of the units.

Shops at Orchard XChange were mostly shuttered when TODAY visited around noon on June 3, 2021.

Shops at Orchard XChange were mostly shuttered when TODAY visited around noon on June 3, 2021.


  • Tenants said that since 2018, only 50 per cent of the units there were occupied at a time
  • SMRT also made little effort to promote or market the place, they said.
  • The rail operator said it will have an anchor tenant to take over the area
  • It has plans to revamp its other centrally located XChanges

 

SINGAPORE — Due to sluggish business and low foot traffic, the Orchard XChange shopping area has become a “ghost town”, tenants there said. They were recently asked to vacate the premises because landlord SMRT has chosen to take back most of the units.

Orchard XChange is an underground circular shopping area, located above Orchard MRT Station and adjacent to Ion Orchard mall, though the exits to Ion have been closed to control crowds due to the Covid-19 pandemic.

A view of shuttered shops in Orchard XChange about noon on June 3, 2021, with the closed entrance to Ion Orchard mall in the distance. Photo: Nuria Ling/TODAY

Speaking to TODAY, the tenants said that they were sold a bustling food-and-beverage (F&B) concept by the rail operator, and they were told that about 70 to 75 per cent of the units would be occupied by the time they moved in.

However, since they took over the units in 2018, they estimated that, at most, only 50 per cent of the units have ever been occupied, and business has never picked up to what was expected.

They said that things were already bad before the pandemic but the situation worsened as a result of reduced patronage from lesser human traffic and use of MRT services, for example.

The tenants asked not to be named because they are still negotiating some outstanding rental issues with SMRT and are waiting for these discussions to be completed.

In response to TODAY’s queries, SMRT said that it will have an anchor tenant to take over the area, though it did not identify the prospective tenant and when it will be taking over the area.

Mr Daniel Chua, SMRT Properties’ general manager, said: “We plan to revamp our retail and F&B offerings at stations such as Dhoby Ghaut, Orchard and Tanjong Pagar, to bring in new experiences for our commuters and surrounding communities. 

“We will make them known in due course after finalising negotiations with prospective tenants.”

One of the affected tenants said that her shop, an F&B business, was able to make just S$400 a day and this was already better than some of her neighbours, who would only see S$50 to S$100 a day in sales.

Still, she said that what she earned was only enough to cover rental fees, but not the cost of manpower and materials. She declined to disclose how much she was paying each month.

Another tenant, who owns a hair salon and moved from a previous location to Orchard XChange in 2018, said that because of the poor business, a handful of her staff members gradually left as the salon was barely surviving on the revenue from its regular customers.

Some tenants chose to draw their shutters last year, even before SMRT took the units back around January this year. This only made the situation at Orchard XChange worse, the remaining tenants said.

“Last time, when (more F&B outlets) were open, at least there were some people around during lunchtime. But after they closed, you barely see anyone walking past,” the F&B shop owner said. 

Even with the poor business, the tenants said that SMRT made little effort to spruce up the area or do anything to market the area and attract more customers.

A tenant who ran another F&B store said that during festive periods such as Christmas, Chinese New Year and Hari Raya Puasa, the tenants took it upon themselves to hang up decorations to attract customers.

“At Ion (next door), they brought in a Christmas band and everyone was attracted to go there. But ours, nothing, zero… No attractions, no footfall,” he said.

The first F&B shop owner said that when they asked the rail operator if they could put up posters or distribute flyers at the MRT station below, SMRT said that it would have to charge the tenants extra if they did so within the premises of the station.

“So we could not even do our own marketing,” she said.

They recalled that SMRT did some promotion, such as putting up offers on its Wink rewards mobile application, but the tenants said that these efforts did not bear any fruit.

Customers shopping in the area told TODAY that they were not even aware that there used to be shops at Orchard XChange even before the tenants moved out.

Domestic worker Chita Mora, 48, said that she stops by the area only when she wants to buy food from fast-food outlet Popeye’s, which was one of the three stores that were still open when TODAY visited last Thursday (June 3).

A shopper who wanted to be known only as Mr GG said that he only noticed the stores at Orchard XChange because he lives in the area and goes to Orchard Road frequently to shop or get takeaway. Still, he never patronised any of them when they were open.

‘DEAD MAN’S STREET’

TODAY’s checks at the other centrally located SMRT XChanges at Dhoby Ghaut, Raffles Places and Tanjong Pagar on Friday afternoon found footfall to be equally sparse, if not non-existent.

At Dhoby Ghaut XChange, more than half of the units did not appear to be occupied, while most of those that were occupied were not open for business.

The scene at Dhoby Ghaut XChange at 2.30pm on June 4, 2021. Photo: Tessa Oh/TODAY

An Ezbuy warehouse handler, who declined to be named, told TODAY in Mandarin that even before the pandemic, the area was usually very quiet with few customers frequenting the place.

When asked if SMRT has made an effort to promote the place, the handler said that she was not aware of any marketing campaigns by the rail operator and also does not pay much attention since the shop does not rely on footfall for business. The Ezbuy is just a unit where people go to collect their parcels.

Over at Tanjong Pagar XChange, tenants there said that traffic used to be bustling before the pandemic, owing to the lunchtime crowds from those working in the Central Business District.

But ever since the coronavirus outbreak, business in the area has fallen by at least 90 per cent as most workers are now working from home, especially in light of the tightened restrictions that were put in place last month.

The tenants did not want to be identified because they are afraid of being singled out by SMRT.

One shop owner said that she managed to sell just one pair of socks on the day TODAY visited her shop. Before the pandemic, she would see many customers patronising her store during lunchtime from 12pm to 2pm.

Shuttered shops at Tanjong Pagar XChange at about 4.30pm on June 4, 2021. Photo: Tessa Oh/TODAY

Making matters worse is the little-known location of Tanjong Pagar XChange, they said, and the many empty units give customers the impression that the whole stretch is closed for business.

Because of this, tenants have overheard customers calling it a “dead man’s street”.

The tenants said that they have not been given much rental relief and support from SMRT to tide over this period.

“We have been trying to ask SMRT to give us some assistance, but the assistance that they gave us, in the form of some rental rebate, is not enough to cover (our operation costs) at all,” one tenant who runs an F&B outlet said. The shop was given a 20 to 30 per cent rebate.

Selling only 30 boxes of items priced at S$6 a day, she said that it is nearly impossible for her to cover rental and overheads each month.

“How can we cope? I almost want to die already… I don’t really know how to move forward,” she said.

In response to TODAY’s queries, Mr Chua said that SMRT provides “targeted and sustained rental support” for its tenants now on a case-by-case basis.

This support includes restructuring of leases and additional rental assistance, he said.

Related topics

Covid-19 retail F&B tenants shopping Orchard XChange SMRT

Read more of the latest in

Advertisement

Advertisement

Stay in the know. Anytime. Anywhere.

Subscribe to our newsletter for the top features, insights and must reads delivered straight to your inbox.

By clicking subscribe, I agree for my personal data to be used to send me TODAY newsletters, promotional offers and for research and analysis.

Advertisement

The Big Read in short: Why it's hard for Singapore to kick smoking completely

SINGAPORE — Mr Kevin Wang, 32, used to smoke a pack of cigarettes every day when he was living in Paris. But one year after moving to Singapore, in 2016, the public officer who works at a statutory board kicked the habit.

Smokers at a designated smoking point in Orchard Road on Sept 19, 2024.

Smokers at a designated smoking point in Orchard Road on Sept 19, 2024.


New: You can now listen to articles.
Sorry, the audio is unavailable right now. Please try again later.

This audio is generated by an AI tool.

  • Over the years, Singapore has imposed increasingly strict restrictions against smoking, banning cigarette use at common areas of residential buildings and parks
  • The policies have succeeded in causing smoking prevalence to dip to new lows every year
  • While there is success, there are also limitations as some addicts refuse to give up the habit or even turn to alternatives like vaping
  • This shows that even as Singapore stamps out smoking, it has to also step up vigilance against the entry of electronic vapourisers into the country, experts said 
  • Singapore is on track to becoming a smoke-free nation but there is still a lot more that needs to be done to achieve that status, they added

SINGAPORE — Mr Kevin Wang, 32, used to smoke a pack of cigarettes every day when he was living in Paris. But one year after moving to Singapore, in 2016, the public officer who works at a statutory board kicked the habit.

“The environment in Singapore made it hard to smoke everywhere. Not seeing smokers all the time helped me to stay focused and not relapse."

At the time, smoking had been banned in entertainment outlets, educational institutions and public areas at residential sites.

Ever since then, the rules have been tightened further. Today, smoking is not allowed in all parks and recreational beaches. Smoking is also banned at Orchard Road except at designated smoking areas, which are marked by yellow boxes.

On the flip side, the outdoor smoking ban has not stopped information technology executive Salihan from smoking as much as he always has.

He finds it inconvenient to head to the limited number of smoking points in the Central Business District where he works, but instead of smoking less as a result, he just makes sure to light up more cigarettes during each smoke break, to “compensate” for the reduced number of smoking sessions.

The stories of Mr Wang and Mr Salihan reflect the successes and limitations of Singapore’s efforts to curb smoking.

Singapore's smoking rate has fallen steadily over the years. According to the 2023 National Population Health Survey conducted by the Ministry of Health, 8.8 per cent of Singapore residents smoked daily, down from 13.9 per cent in 2010.

This shows the extent to which the near-total ban on outdoor smoking, alongside other measures such as gradual price hikes, has succeeded in nudging many smokers to kick their habit while dissuading younger Singaporeans from ever picking it up.

But that remaining 8.8 per cent of daily smokers is a testament to the fact that perhaps government policies can only go so far in stamping out smoking altogether: For some, the addiction to nicotine is strong enough to overcome the many barriers placed in their way.

Others have quit cigarettes only to start vaping instead, despite the fact that vapes, or electronic cigarettes, have been outright banned here since 2018.

It raises the question: If there is any progress to be made in the fight against nicotine, how can it be achieved, and is this even a realistic aim?

WHY IT MATTERS

The ever-increasing restrictions on smoking, coupled with other moves such as hefty hikes in the tobacco tax over the years, have had mixed results.

They gave some smokers, like Mr Kevin Wang, the motivation to quit.

Others say the difficulty of finding smoking points means they smoke less when they have to leave home, and especially if they have to go to the Orchard Road area or the Central Business District.

A regular smoker who wanted to be known only as Madam Quek said that she smokes an average of six to eight sticks daily, but when she heads out to town, that number drops to four.

But there are also smokers who have simply adapted to the rule changes and found ways to maintain their habit.

Mr Robert Fernando, for example, said that the restrictions did not deter him from cutting down his frequency of 20 sticks per day. The 65-year old just avoids the places where he can no longer enjoy his cigarettes freely.

“I stopped going to Orchard Road unless it’s absolutely necessary, because it takes my freedom away”.

The ever-increasing restrictions on smoking, coupled with other moves such as hefty hikes in the tobacco tax over the years, have had mixed results.

Some former smokers, meanwhile, have switched to vaping, ironically because they find it more convenient in some ways — since it is illegal everywhere, they feel they can light up anywhere.

“Vaping offers the nicotine hit with better flavours, no smell, and the flexibility to vape anywhere, even indoors (which is not possible with cigarettes),” said a creative director in his 30s who wished to remain anonymous.

“You can take a hit anytime, anywhere. It is so common in Singapore that no one’s surprised when you see someone doing it. This normalisation makes it easier to vape indoors — at offices, house parties, even in public toilets”.

Vapes have become so popular that the authorities have been stepping up enforcement measures against offenders.

THE BIG PICTURE

Singapore made early moves to curb smoking in 1992 with the passing of the Smoking (Prohibition in Certain Places) Act, which consolidated existing bans on tobacco advertising and smoking on buses, the MRT, and in cinemas.

Over the years, amendments have been made to the laws to ban smoking in more and more premises. In 1994, for example, smoking was outlawed in air-conditioned areas such as factories and private offices.

In 2007, the smoking ban was widened to include entertainment outlets such as pubs and nightclubs, and in 2013, people could no longer smoke in the common areas of residential buildings too. Between 2013 and 2017, the smoking rate dropped from 13.1 per cent to 11.8 per cent.

Another big move was made in 2019, when the entire Orchard Road precinct was designated a No Smoking Zone. A year later, the smoking rate dipped to 10.1 per cent from 10.6 per cent.

And then in 2022, there was no more smoking allowed in public parks and on recreational beaches.

As the Government progressively stepped up these prohibitions, designated smoking points were set aside where smokers could light up legally while outdoors.

For example, by 2017, Nee Soon South built 50 open-air smoking points, fitted with angled benches and zinc roofs, around the neighbourhood.

Over in Holland-Bukit Timah Group Representation Constituency (GRC), there are two cooled smoking booths and the town council plans to add three more.

These smoking points are a hit — but only among non-smokers, who are protected from secondhand smoke.

Smokers themselves are not so enamoured by these designated points and cabins, saying that they tend to be stuffy and uncomfortable.

By 2017, Nee Soon South built 50 open-air smoking points, fitted with angled benches and zinc roofs, around the neighbourhood.

THE BOTTOM LINE

There is still room for improvement in Singapore's cigarette smoking prevalence rate.

Globally, the accepted definition of a "smoke-free nation" is one where fewer than 5 per cent of its residents smoke daily.

At 8.8 per cent, Singapore is near that standard but certainly can do better, health experts said.

Dr Yvette van der Eijk, an assistant professor at the National University of Singapore who specialises in tobacco control and mental health research, said that if Singapore wants to be smoke-free in the next five years, it could adopt more aggressive measures, such as reducing nicotine content in cigarettes. 

The United States' Food and Drug Administration said in 2022 it was planning to make such a move, but the plan faces fierce backlash from tobacco companies and may take years to take effect, if at all.

New Zealand passed a law in 2022 that would have adopted this move as well, but the measure was scrapped when a new government took over last year.

If Singapore wanted to stamp out smoking over the next 10 years, it could go even further by banning added flavours such as menthol and fruits in cigarettes and implement even more aggressive taxes tied to annual inflation, Dr van der Eijk added.

To stamp out smoking fully over the next 30 to 40 years, the country could consider a generational ban, which would prohibit anyone born after a certain year from buying cigarettes, she said.

In the shorter term, Singapore could consider banning smoking at the outdoor dining areas of bars, restaurants and coffee shops, she added.

“If all of that were just made smoke-free, that would go a long way in helping to de-normalise smoking in these kinds of settings."

She added that social smokers tend to smoke when they are out drinking with their friends, so a ban on food and beverage establishments would disband the association between drinking and smoking.

At the same time, with vaping becoming so popular, it will be important for the Government to step up enforcement against vaping and stop the influx of vapes into Singapore, said Mr Sean Ang, a smoking cessation specialist at Success Alliance Enrichment.

"If we are not careful, one day we might have few cigarette smokers but become a nation of vapers," he warned.

Meanwhile, some noted that anti-smoking policies and programmes must address the root cause of addiction.

Nee Soon GRC Member of Parliament Carrie Tan noted that many people smoke as a way to deal with stress. She believes that to truly address smoking, that is the issue that needs to be fully studied and understood. 

“I think how people are encountering challenges and what resources they have to cope with the difficulties in their lives is what we need to be focusing on."

Related topics

Smoking vaping

Read more of the latest in

Advertisement

Advertisement

Stay in the know. Anytime. Anywhere.

Subscribe to our newsletter for the top features, insights and must reads delivered straight to your inbox.

By clicking subscribe, I agree for my personal data to be used to send me TODAY newsletters, promotional offers and for research and analysis.