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IN FOCUS: Why illicit massage parlours, hard-selling beauty salons are hard to get rid of in HDB estates

LaksaNews

Myth
Member
SINGAPORE: It is quiet along the corridor outside Mr Lau Peng Koon’s flat as he tends to his plants, meticulously inspecting the leaves and watering the soil.

But eight floors down, where the shops are located, the atmosphere shifts dramatically. Bright LED signs flash outside a photo shop while shopkeepers chat with their customers. Delivery carts stocked with groceries rattle as they are wheeled across drain gratings.

A long-time resident of Crawford, Mr Lau has seen the estate transform from a quiet “ghost-town” into a bustling and vibrant neighbourhood over the past five decades.

“We have a lot of tourists coming here because there is a coffee shop that is very old school and is famous,” said the 57-year-old.

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“This used to be a very old estate, with a lot of old folks. But it’s changing now and the place is getting younger with a lot of new flats popping up. So it’s becoming quite happening here.”

Amid the new flats and trendy eateries, another type of business has multiplied in recent years. Beneath his flat, there are at least three massage parlours.

“About 10 years ago, there used to be just one or two (in the whole estate),” he said. “Then, all of a sudden - and I don't understand why - more and more started coming up.”

Gesturing across the cluster of Housing and Development Board (HDB) blocks, he said there were at least three other massage parlours operating nearby.

“The thing is – (massage parlours) keep popping up. One shuts down, and then another one takes over.”

While some appear to operate legitimately, others have created unease among residents. “A lot of the old folks might feel uncomfortable, because there are so many … ladies sitting there,” said Mr Lau.

“They just ask ‘do you want a massage?’ and if you don't respond or say no, they won't pester you or block your way and try to grab you. So, it’s okay, we can't judge them for what they do because are they really legitimate? We don’t know.”

Still, the concentration of such shops feels unusual, he said.

“As long as they don't pester the pedestrians and the people around here - we can't really say no to them having a shop here but I'm just wondering, when they want to open their shops … does the government have any control over it?”

“And where do they get the business from? There are so many of them. They can’t really sustain the business here, but they keep wanting to try.”

However, regulating such businesses - particularly in older HDB estates - is not so easy, as many of the shops are privately-owned, according to Members of Parliament (MPs) CNA spoke to.

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Mr Lau Peng Koon, who has been living in the Crawford estate for the past 50 years, said there seems to be a high concentration of massage parlours in his neighbourhood. (Photo: CNA/Vanessa Lim)

WHEN THE HDB SHOPS ARE PRIVATE​


As of August last year, about 8,500 HDB shops were privately owned, accounting for more than half of the roughly 15,500 HDB shops in Singapore, according to the Ministry of National Development (MND).

But with more than half of HDB shops in private hands, the question remains: What can be done when certain businesses begin affecting residents?

While HDB rents shops directly to businesses, many - especially in older estates - remain privately owned. The government sold these units in the 1980s and 1990s to promote entrepreneurship and commercial property ownership.

MND said previously that because these shops were sold on purely commercial terms without subsidies, they are treated like private commercial properties.

Owners do not need to inform HDB when renting them out. A 2022 study showed about 75 per cent of private shops were rented out.

Although sales were discontinued in 1998, about 7,700 privately owned HDB shops were sold on 99-year leases and still have more than 30 years remaining.

Senior Minister of State for National Development Sun Xueling said previously that government agencies work together to plan, regulate and license commercial activities.

She added that in commercially-run shopping malls or privately-owned HDB shops, market forces determine the mix of shops while adhering to regulations.

However, challenges remain, said the MPs CNA spoke to.

Citing massage establishments in her ward, MP Denise Phua (Jalan Besar) said privately owned units make it harder for authorities to intervene, even when there are repeated complaints. It also complicates monitoring for vice activities.

“HDB and the police can intervene and conduct raids, but it’s not easy. (It’s like a) cat-and-mouse chase sometimes,” she said.

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Similarly, at Tanjong Pagar Plaza, a significant number of shops at the mixed-use development were sold by HDB in the 1990s on 80-year leases, according to MP Foo Cexiang (Tanjong Pagar).

He said the issue is largely economic.

“Why is there a proliferation of a certain type of shop?

“It’s because these are the types of shops that are prepared to pay higher rentals, and because a large majority of the shops are on long-term leases – some have 50 years left on the lease – the owners are looking to maximise their rental yield, and so they find the users that can pay them the highest yield,” he added.

HDB is not able to dictate who comes into the unit, he said, adding that this is up to the private owners. “So actually, by way of current regulation, it is quite limited.”

The police are also reviewing the massage establishment regulations.

Under the Act, massage establishments must be licensed by the police. However, open-concept outlets - as well as beauty salons that do not provide massage services - are exempt.

Meanwhile, in cases where a business is engaging in unfair trading practices, the Competition and Consumer Commission of Singapore (CCS) said that it can seek an injunction from the courts to compel them to stop.

If they fail to comply with the court order, this could lead to a fine or imprisonment.

In 2024, the director of nail salon chain Nail Palace was sentenced to three months’ imprisonment for failing to comply with court orders obtained by CCS in relation to unfair trade practices.

DISRUPTIVE BUSINESSES​


The issue of managing commercial activities in residential estates recently surfaced in parliament.

Ms Phua raised the need to protect residents' well-being amid disturbances from some neighbourhood businesses, including massage parlours and karaoke outlets.

She told CNA that she has seen an increase in complaints from residents regarding commercial activities in their estate in recent years.

The concerns also appear to be widespread, with complaints from residents in Crawford, Syed Alwi, Jalan Besar, and Serangoon Road.

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Tanjong Pagar Plaza. (File photo: CNA/Vanessa Lim)

Similar problems have been reported in a residential estate in Tanjong Pagar, which recently saw the closure of 10 massage and spa establishments offering illicit services following a crackdown and police enforcement.

Speaking to CNA, Mr Foo said residents of Tanjong Pagar Plaza, a mixed-use development, were uncomfortable with the number of beauty salons and massage shops at the shopping centre.

While the majority of these businesses operate legitimately, a few have cast a bad light on the shopping centre, turning away residents, customers and potential businesses, he said.

“The residents are concerned that several of them may be conducting illicit activity and because of that, they don't patronise the plaza, and generally they are concerned that it will be a negative influence,” he said.

With several pre-schools in the plaza, Mr Foo noted that some parents were also uneasy whenever their children went past these shops.

Staff members could often be seen sitting outside these shops looking for clients, he said.

“The residents themselves don't patronise the plaza so much even though it's right beneath their unit because they're not looking for these services,” he said.

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In Toa Payoh Central, a row of beauty salons near HDB Hub has also drawn attention over aggressive sales tactics.

When CNA visited the area earlier this month, there were six beauty salons along the same stretch.

At all of them, employees were standing outside the shops, calling out to passers-by as they walked past. While a few people stopped, most hurried past.

One woman, who declined to be named, was spotted by CNA being approached by a staff member at one of the shops, and had cream applied to her face.

She later told CNA that she felt pressured despite repeatedly declining the product.

The woman, who is in her late 60s, said a person kept asking her to go into the shop and when she wanted to leave, another person apparently turned aggressive and accused her of being rude.

“I felt a bit intimidated … I just quickly walked away because I didn’t want to hang around there and have more problems,” she said.

Another resident, Ms Chua, said she now avoids walking past the salons altogether, opting to walk in the open-space courtyard across the shops instead.

“Whenever I come here, they keep calling me and asking me to go in … They are very pushy, so I would rather avoid them,” said Ms Chua, who is also in her 60s.

Last year, one of the beauty salons along the same stretch - Beautique - came under fire, after its parent company, DNA Brands Co, was placed on the Consumers Association of Singapore’s consumer alert list following dozens of complaints from consumers who had been misled or pressured by sales assistants into purchasing excessive packages or products.

At least 40 per cent of the complainants were 60 years old and above.

The matter was referred to the CCS, which told CNA that it is currently investigating the allegations against the company.

CCS said it conducted an unannounced visit at an outlet associated with DNA Brands Co last week to obtain information and carry out interviews with “persons of interest”, adding that it may expand the investigation to include other related businesses.

DNA Brands Co operates beauty salons under the Beautique brand and retail stores under The Mineral Boutique brand, among others.

The Beautique outlet in Toa Payoh has since closed, with the unit taken over by another beauty shop. It is unclear if the new shop is owned by DNA Brands Co.

CNA has contacted the company for more information.


While MP Cai Yinzhou (Bishan-Toa Payoh) said he has not directly received any complaints from residents, he noted that the area has high footfall and may be frequented by residents from other neighbourhoods.

“Predatory, deceptive practices of business are definitely wrong, and if any residents should be experiencing it, do seek their MP or do make a police report,” he said.

“If we have this information, then we are able to help follow up and advocate for the resident, and we can basically go after these businesses with the evidence and proof that has been shared with us,” he added.

TACKLING THE ISSUE​


Among the solutions proposed is Ms Phua’s suggestion to have clearer use classes to better distinguish between low-impact and higher-impact neighbourhood businesses, such as late-night food and beverage outlets, massage establishments, bars and karaoke outlets.

This would allow planning decisions to better reflect the lived reality at the block or precinct level, instead of broad zoning assumptions, she said.

She also proposed that business operators with higher-impact use could also go through a consultation at the preapproval stage.

The process, she said, would clarify regulatory expectations and minimise disputes - making it “pro-business and pro-resident”.

Operators could also enter into a “good neighbour agreement”, setting expectations on noise, waste management and crowd control.

Ms Phua further called for closing regulatory gaps and improving inter-agency coordination.

In September last year, MND said that HDB will “selectively acquire” privately owned HDB shops if needed and increase the supply of units it leases out, in response to concerns over soaring rents.

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Doing so could also help to rebalance the trade mix, said Singapore University of Technology and Design (SUTD) Associate Professor of Practice Calvin Chua.

“(HDB) would probably be able to better control the trade mix and curate the tenants, because if it's left to the free market then it's very hard to control and especially for places like Tanjong Pagar, it’s got to do with rent and proximity to the urban core,” said the urban strategist, who is also the founder of design firm Spatial Anatomy.

“If you compare to newer HDB malls that are kind of managed by HDB, they are able to drive a certain trade mix and also certain kind of services that are more catered to the community,” said Mr Chua.

“If we allow the free market to exist for these older HDB malls, I think we kind of miss the chance to really build or design an environment that really would benefit the community and liveability of that place.”

Ultimately, Mr Chua said much comes down to changing perceptions.

“It’s one thing to get rid of the undesirable shops, but I think if we focus on the possibilities, we can gradually shift the needle and change the perception of that HDB neighbourhood, but it takes a much longer period of time for that transformation to happen,” he said.

He suggested more “placemaking” initiatives, which refer to proactively managing spaces to improve them.

“If (HDB) is unable to take over the units, they can have events or placemaking activities for example … having some karaoke events for elderly folks by tapping on the courtyard space.

“Through some of these events, it can perhaps gradually nudge the market in a certain direction, maybe that person who owns the shop will rent it to a traditional Chinese medicine practitioner to serve the elderly or similar types of businesses.”

Echoing this, Mr Foo said he is working with the Traders’ Association and Residents’ Network to organise more events in the concourse to increase footfall from residents and those working or living nearby.

A recent survey of more than 100 households by the Tanjong Pagar Plaza Residents’ Network found residents hoped for more family restaurants, F&B outlets, and enrichment centres, he said, adding that the Traders’ Association is sharing these findings to attract suitable tenants.

While new businesses – including a music school and physiotherapy clinic – have moved in, Mr Foo told CNA that it is still “very early in the process”.

“On one hand, you need to make sure that there is ample enforcement so that these illegal uses are sort of weeded out, and with them getting weeded out, the overall demand for the shops will become more reflective of the actual demand in terms of what the usual service providers or vendors will be able to pay for rental.

“If we are able to do that, then we may be able to attract a greater variety of shops, whether F&B, hobbies and craft, enrichment centres - things that the residents look forward to and … the residents will then start coming back to Tanjong Pagar Plaza.

“Then you’ll have a virtuous cycle because the residents patronise the services, there's demand for the services, it makes the businesses tenable by moving into Tanjong Pagar Plaza with a variety of services that meet the needs of residents. So that really is the end goal,” he said.

CNA has contacted HDB for comment.

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