The retail sector is seeking urgent relief from the escalating commercial land guidance values, which have significantly increased the cost of establishing and operating retail businesses. Retailers argue that the sharp rise in guidance rates has led to higher acquisition costs, increased stamp duties, and elevated rental demands, putting additional financial strain on businesses that are already grappling with changing consumer behaviors and competitive pressures. Many retailers, especially small and medium-sized enterprises, are finding it difficult to sustain their operations in prime locations, leading to concerns about reduced retail diversity and the potential hollowing out of major shopping districts.

Industry representatives emphasize that while land value appreciation reflects growing urban prosperity, sudden and steep hikes in guidance rates without corresponding growth in retail revenues create an unsustainable environment. They are advocating for a more balanced approach where guidance rate revisions consider the operational realities of retail businesses and the economic contribution they make to urban ecosystems. Proposals from the retail sector include phased increases, relief measures for small businesses, and differentiated guidance rates based on business categories and zones, ensuring that growth is inclusive and does not disproportionately burden certain segments.

If policymakers respond to these concerns with supportive measures, it could help stabilize retail expansion and preserve the vibrancy of commercial centers. Retailers stress that ensuring affordable access to commercial spaces is crucial not just for their survival but also for maintaining lively, diverse urban environments that attract consumers, tourists, and investors. Without timely intervention, the widening gap between real estate costs and business viability could lead to a contraction in retail activity, ultimately impacting urban economic growth and employment generation.