Published February 24, 2009

CapitaLand sends its staff shopping

Managerial staff getting $1m of vouchers redeemable at group's malls as part of bonus

By JOYCE HOOI

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(SINGAPORE) Over the next year, retailers in CapitaLand shopping malls can expect Liew Mun Leong, CapitaLand's president and chief executive officer, to spend a chunk of his bonus in their stores.

He will be paying them with vouchers too.

Mr Liew, along with about 680 managerial staff from CapitaLand, will be given a total of $1 million in shopping vouchers as a small proportion of their bonuses this year. The vouchers, wholly funded by CapitaLand, will be redeemable at 1,000 participating outlets at all 12 of CapitaLand group's shopping malls, such as Bugis Junction, Plaza Singapura and Raffles City Shopping Centre.

'Staff will receive the shopping vouchers in March 2009, and the amounts given range from $750 to $10,000 in value, depending on the total bonus,' said a spokesman for CapitaLand.

Those receiving the vouchers will be able to use them at a range of outlets from jewellery stores to fast food outlets and do-it-yourself stores.

'More importantly, they can buy household essentials such as groceries and other necessities from tenants such as Giant Hypermart, NTUC Fairprice, Cold Storage and Carrefour. We had a positive response from staff when the initiative was conveyed to them at a recent staff communication session,' the spokesman said.

In December last year, CapitaLand announced salary cuts ranging from 3 per cent to 20 per cent primarily for its management and executive-level employees with effect from January this year.

The move also represents a means of directing some of the cash flow back to CapitaLand shopping mall tenants.

'This innovative initiative to increase expenditure and footfall at our malls enables CapitaLand to directly support our retail tenants during this challenging economic climate. By targeting consumption in CapitaLand's malls, we are able to create a multiplier effect and a win-win situation for both tenants and staff,' said the spokesman.

The move was well-received by its tenants, who have seen better times.

'I think this is a good measure because CapitaLand's rank-and-file will support their malls' tenants. The vouchers that are redeemed will be able to be booked as sales,' said Yuen Yew Meng, managing director of HomeFix, a DIY chain of stores.

Sending some sales the tenants' way could not have come at a better time too.

'While I've been maintaining my sales due to an increase in home repair and projects, foot traffic has definitely fallen, according to all my stores' managers,' said Mr Yuen.

It remains to be seen if other developers such as Allgreen Properties, Frasers Centrepoint and Suntec Reit - all of whom have retail tenants - will follow suit.