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CBA faces scrutiny over S$8,600 monthly rental demand for space outside Chinatown coffeeshop
CBA faces scrutiny over S$8,600 monthly rental demand for space outside Chinatown coffeeshop

Online Citizen​

time02-07-2025

  • Business
  • Online Citizen​

CBA faces scrutiny over S$8,600 monthly rental demand for space outside Chinatown coffeeshop

The Chinatown Business Association (CBA) has come under public scrutiny after issuing a legal notice demanding more than S$77,000 in unpaid rent, plus S$5,500 in legal fees, from Nanyang Old Coffee. The sum covers nine months of outdoor space usage and has sparked widespread debate over its justification. Khoo Keat Hwee, 38‑year‑old founder of Mentai‑Ya Japanese Cuisine and an F&B consultant, in a TikTok video questioned whether the narrow pedestrian walkway outside the shop is worth S$8,600 per month. Background to rental dispute In August 2024, CBA secured a master tenant contract for the Smith Street precinct, paying S$123,000 monthly. This grant includes management rights over 13 shophouses and the adjacent pedestrian walkways, but not privately owned premises such as that of Nanyang Old Coffee. Despite this, CBA claims the sheltered walkway outside the café is part of the managed pedestrian area, and insists usage requires rent, which it has set at S$8,600 per month. The total claim of S$77,724.18 covers from October 1, 2024, to June 2025; with legal fees added, CBA is seeking over S$83,000. A case conference was held in the State Courts on 26 June, as both parties attempted to resolve the dispute. 'Is this space worth like 8,600 a month?' In the TikTok video, Khoo asked: 'Is this space worth like 8,600 a month?' He raised concerns over CBA's priorities, asking why it is targeting a 65-square-foot space outside one café when it oversees some 30,000 square feet of pedestrian area. He pressed government agencies—SLA and URA—to demand that CBA reveal its efforts in promoting Smith Street, how many units remain vacant, what profits it has earned as a non‑profit, and even how much its directors are being paid. Empty units cast doubt In a follow-up TikTok, Khoo highlighted that most walkways outside the CBA-managed shophouses remain empty. He described the street as quiet, with many units sitting vacant for months. According to him, retail rents influence F&B prices across Singapore, and these high costs hinder the attraction of new tenants. Khoo lamented: 'If these public commercial units aren't reducing rental rates, then why would private landlords reduce? Does or doesn't rental rates affect food prices in Singapore?' He questioned the logic behind converting prime ground‑floor units into offices when upper‑floor rent is about half that of street‑front units. A search on CommercialGuru advertisement list shows a wide rental range: shop‑lot units on Smith Street can command from S$3,000 to over S$28,000, while upper‑floor units may range from S$3,800 to around S$14,000. Khoo: Empty units and lawsuits will not rejuvenate Smith Street Khoo further defended Nanyang Old Coffee as a cultural anchor, saying it resembles a 'mini museum' that offers S$3 kopi and S$8 lunches, while preserving local coffee heritage. He praised the owners for investing in décor and displays 'so people have something to see, to feel,' which keeps the street alive—unlike the many empty shophouses nearby. 'We keep saying rejuvenate Smith Street but empty units and lawsuits aren't going to make that happen,' he said. He noted that it is the people, culture, stories and food that bring heritage to life—not legal notices or empty facades. Public voices lament decline of Chinatown's soul amid rent pressures and empty units Khoo's videos struck a chord with the public, garnering strong support in the comments. One user wrote, 'Something is horribly wrong when there are hardly any restaurants there… rentals are too high.' Several lamented the loss of vibrancy in Singapore's F&B scene and called for a city that 'never sleeps'—but cited high rents and tight restrictions as barriers to creativity and nightlife. A TikTok user shared that he had plans to start a vintage coffee shop to revive old Chinatown memories and offer tourists an authentic experience. However, he lamented that such profiteering practices have 'killed the whole street,' discouraging efforts to preserve cultural charm. One comment noted that Nanyang Old Coffee appears to be the only tenant along Smith Street performing steadily, yet it is being 'squeezed out.' The user expressed doubt over the longevity of new tenants, predicting a return to empty units. Khoo echoed this sentiment, suggesting the café is being 'punished' despite surviving through COVID‑19. Some criticised CBA's apparent prioritisation of revenue over heritage. 'They seem to have forgotten the retailers,' one comment read. 'No one will go to a place with nothing… just the big boys milking those who can afford legal support.' While a comment suggested that some F&B owners in Singapore may view it as unfair if they are required to pay for using outdoor space while this café is not. The user argued that all businesses should bear rental costs equally, adding that if the café closes, it might prevent further division of a limited customer base. CBA's response and intention According to CNA, CBA claimed it had made repeated attempts since October 2024 to engage the café's founder, Lim Eng Lam, including offers to sublet the walkway space. However, the association alleged its outreach in February and March 2025 went unanswered. CBA stated it does not seek to restrict the café's operations or force a tenancy, but to uphold its position that all managed areas require rent. It further claimed that any proceeds from the lawsuit will be donated. Broader calls for rental reform The Chinatown dispute reflects a larger problem across Singapore, where small and medium-sized enterprises (SMEs)—particularly in the F&B sector—are struggling with unsustainable rental hikes. In May, a bakery near Sembawang Road saw a 15% increase in rent, while a cake shop in Siglap faced a jump from S$5,400 to S$8,500—an increase of 57%—which led its owner to shut down. On 12 June, advocacy group Singapore Tenants United For Fairness (SGTUFF) called for urgent structural reforms to help SMEs stay afloat. Their recommendations include short-term relief and long-term policy recalibration. Among their proposals: rental caps tied to inflation and a national reassessment of urban planning and commercial land use priorities.

Nanyang Old Coffee in dispute with Chinatown Business Association over S$77K in alleged back rent
Nanyang Old Coffee in dispute with Chinatown Business Association over S$77K in alleged back rent

Independent Singapore

time27-06-2025

  • Business
  • Independent Singapore

Nanyang Old Coffee in dispute with Chinatown Business Association over S$77K in alleged back rent

SINGAPORE: The decades-old Nanyang Old Coffee is being sued by the Chinatown Business Association for more than S$77,000 due to unpaid rental fees for its outside dining area along Smith Street. According to a report from Lianhe Zaobao earlier this week, Nanyang Old Coffee had occupied a sheltered walkway on the street by placing tables and chairs for its customers. The 'cafetaurant' is allegedly supposed to have paid a rental fee of S$8,636.02 per month beginning from Oct 1, 2024, for a total of S$77,724.18, according to a legal letter sent by the Chinatown Business Association, which is a nonprofit entity made up by representatives from businesses and the community and which won a tender to manage the 13 shophouses in Smith Street last year. Nanyang Old Coffee, which has been located at the intersection of South Bridge Road and Smith Street for 15 years, is not among the shophouses managed by the Singapore Business Association. However, the outdoor area in dispute is, based on the tender documents of the Singapore Land Authority at the time, Lianhe Zaobao reported. The association is also seeking S$5,000 in legal fees. Proceeds from the lawsuit would be donated to help the community, it said. It attempted to reach out to Nanyang Old Coffee last October but stated that the establishment did not give its efforts any attention. 'Despite multiple attempts to resolve the matter amicably, including a formal letter requesting the removal of furniture and potted plants from the outdoor dining area, the unauthorised use of the space has continued, even so, as of Jun 22. 'As such, the Chinatown Business Association has had to take the necessary steps to address this issue,' it said. The Chinatown Business Association also claimed it offered on multiple occasions to sublet the area to Lim Eng Lam, the founder and manager of Nanyang Old Coffee. The other establishments using the outdoor areas are required to pay a rental fee. Mr Lim has since spoken to CNA, saying that he does not agree with the demand from the Chinatown Business Association regarding the rental issue and is hoping for clarification from the authorities on the matter. CNA added that on Thursday (Jun 26), the two parties met concerning the matter at the State Courts. /TISG Read also: Smith Street revamp: Chinatown businesses strive to preserve culture amidst concerns of gentrification

Chinatown Business Association sues Nanyang Old Coffee for over S$77,000 in backdated rent for outdoor area
Chinatown Business Association sues Nanyang Old Coffee for over S$77,000 in backdated rent for outdoor area

CNA

time26-06-2025

  • Business
  • CNA

Chinatown Business Association sues Nanyang Old Coffee for over S$77,000 in backdated rent for outdoor area

SINGAPORE: The Chinatown Business Association is seeking more than S$77,700 (US$61,000) in backdated rent from Nanyang Old Coffee over its use of an outdoor dining area. The space in question is a sheltered walkway outside Nanyang Old Coffee's flagship outlet, located at the intersection of Smith Street and South Bridge Road. The cafe has set up tables and chairs for its customers in this area, which is now at the centre of a legal dispute. According to a lawyer's letter seen by CNA, the Chinatown Business Association is claiming S$77,724.18 in rent, backdated to Oct 1, 2024, with a monthly rate of S$8,636.02. The association, a non-profit entity comprising business and community representatives, won the tender to manage the Smith Street shophouses in 2024. In a statement, the Chinatown Business Association said it first engaged Nanyang Old Coffee in October 2024 after taking over management of the area. "Unfortunately, our repeated attempts to reach out and follow up were consistently ignored," it said. "Despite multiple attempts to resolve the matter amicably, including a formal letter requesting the removal of furniture and potted plants from the outdoor dining area, the unauthorised use of the space has continued, even so, as of Jun 22. "As such, the Chinatown Business Association has had to take the necessary steps to address this issue," it added. The association said it had offered to sublet the space to Nanyang Old Coffee founder and manager Lim Eng Lam, but the offer was not taken up. It said it followed up with Mr Lim three more times in February and March 2025 "but these attempts were ignored". The association added that it was not restricting the cafe's business operations, nor compelling it to become a tenant. However, it stated that rent is required for the use of the space, as was "required of all other tenants". Mr Lim confirmed that the association had been in touch with him over the issue since October last year. He told CNA he disagreed with the rental demand and had sought clarification from the authorities regarding the rent issue. Chinatown Business Association said any proceeds from the lawsuit would be donated. A case conference between both parties was held at the State Courts on Thursday (Jun 26), where both parties were to discuss the matter.

Daily Debrief: What Happened Today (Jun 26)
Daily Debrief: What Happened Today (Jun 26)

Business Times

time26-06-2025

  • Business
  • Business Times

Daily Debrief: What Happened Today (Jun 26)

Stories you might have missed Government urges private sector to stop using full, partial NRIC numbers for authentication Authorities say this will better protects citizens from impersonation and having their personal data accessed by others. Johor's billion-ringgit property market braces for higher foreign-buyer tax Foreigners are scrambling to seal property deals in the state to beat the Jul 1 levy hike. Industry players are concerned over the short notice. Singapore's millionaire inflow to halve in 2025: report BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Meanwhile, Thailand emerges as South-east Asia's new safe haven, while China's outflow of affluent individuals slows. Singapore's factory output growth slows to 3.9% in May, but beats estimates Nearly all clusters, including electronics, have recorded increases in production year on year. Chinatown Business Association seeks over S$77,700 in backdated rent from Nanyang Old Coffee for outdoor refreshment area It is also demanding that the cafe remove items that have encroached into the space, and pay legal costs of S$5,500.

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