While cinemas are allowed to resume operations in phase 2, it may be quite a while before karaoke outlets are able to reopen. And it looks like the bad news just keeps coming, for karaoke lovers at least.
Teo Heng is well-known for offering one of the cheapest deals among all the karaoke outlets in Singapore, by charging rates per room instead of per person.
However, in the current landscape, it may see half of its 14 outlets closing. This includes its very first outlet in Katong Shopping Centre, which has been in operation for more than 30 years.
Unable to do business since March due to the Covid-19 pandemic, Teo Heng founder Jackson Teo said "It's very bad" four times in an interview with Shin Min Daily News, when asked about his company's current situation.
According to him, the leases of Teo Heng's outlets in Katong Shopping Centre and Sembawang Shopping Centre will expire in August, which means they'll be the first ones to close.
The Katong branch has already moved out all equipment, while the branch in Sembawang will be emptied in the coming days.
Full story at https://www.asiaone.com/singapore/badly-hit-covid-19-teo-heng-ktv-studio-might-be-closing-half-its-14-outlets
'I really can't hang on': S'pore's family KTV operators craft appeal letter & take grievances to Meet-the-People sessions
As Singapore's vaccination rate grows steadily and the economy gradually reopens — a slew of Covid-19 restrictions were eased in early August allowing people to dine in and other businesses like gyms and fitness studios to operate again — one can say that a sense of normalcy has returned.
For most people in Singapore, that is.
Singapore's entertainment industry is still in shambles, and for the many family karaoke operators here, the indefinite nightmare brought about by the pandemic is far from over.
In their last bid to fight for survival, several KTV operators crafted an appeal letter to request for a reopening on September 15, which they sent to their Members of Parliament (MPs), these include the Multi-Ministry Taskforce co-chairs Gan Kim Yong, Lawrence Wong, and Ong Ye Kung.
Hoping for some clarity
Since March 2020, all nightlife establishments were not permitted to operate.
In October 2020, selected nightlife establishments including family KTVs were allowed to pivot their business to other permissible activities, should they receive an approval from the authorities to do so.
However, in the span of time from October 2020 to July 2021, family KTVs have been hard hit by the fluctuating number of Covid-19 cases, forcing them to open and close several times.
Once again on July 16, the government announced that all pivoted nightlife establishments, numbering around 400, would be suspended for two weeks due to the outbreak of the KTV Covid-19 cluster.
Family KTV operators like Frank Per, owner of Sing My Song Family Karaoke at Paya Lebar Quarter, said they were at their wits' end.
I met Per on Aug. 30 at Choa Chu Kang, where he was queuing to meet the Finance Minister and MP for Marsiling-Yew Tee GRC Lawrence Wong at his Meet-the-People session (MPS).
Per had prepared a detailed letter of appeal addressed to Wong, a copy of which he handed to me, listing out his predicament as a family KTV operator.
As 80 per cent of Singapore's population has been vaccinated, Per and other operators have taken it as a good sign and time for them to make an appeal.
All Per wanted was some clarification on whether family KTVs will be allowed to reopen in the next three months, or at the very least, an update on the direction Singapore's entertainment industry can head towards.
He also wants to propose for a pilot for the reopening of family KTVs, possibly with small groups being allowed in each room and safe management measures in place such as replacing microphone covers.
"Most of us need to exit also, we can't just [continue] waiting for so long," he said. When asked how long his business could last, Per said it was "to the limit already".
Besides reopening, the KTV operators also hope to have "a clear exit path" with protection against potential lawsuits from landlords and stakeholders as a form of short-term support to the nightlife operators.
Back at Choa Chu Kang, Per managed to rally a small group of family KTV operators, all of whom were looking for a mere hint as to when things might look up for their business.
Why pivoting business is not feasible to some?
Steven Ng was one of these aggrieved family KTV operators gathered at Choa Chu Kang. He has closed his business, K Voice Karaoke at 321 Clementi, since the end of 2020.
Despite attempts to pivot to selling food in Nov. 2020, Ng gave up after two months.
"F&B is not my forte. I'm not designed for it, otherwise I would have started a [F&B] business long time back," he said.
Additionally, he added that the location of his karaoke outlet, on the upper floors of a tiny neighbourhood mall situated next to the bustling Clementi 448 Market and Food Centre and other coffee shops, was simply not "favourable" for selling food.
After all, who would visit the place for standard food fare when they can find hawkers nearby who have been specialising in a dish and plying the trade for years?
Both Ng and Per make it clear that while they are appreciative of the government allowing them to pivot their business and generate some revenue, it's evident that the move is merely a stopgap and unfeasible in the long run.
Thus far, Ng has had zero revenue from the karaoke outlet since its closure. Per is also in the same boat, since the suspension in July, and both men have had no income during these periods of closure.
Per shared that he is currently facing mounting debt, and that even if his business is closed, he still foots the bill for rent, which is over S$30,000 per month.
Although the 0.5 months of rental relief KTV operators received helped marginally, Per says it is simply not enough for them to put food on the table.
New restrictions tough for operators
KTV operators have also had to contend with stringent and evolving Covid-19 restrictions.
In end-July after the two week suspension, the government announced that pivoted nightlife establishments will be able to reopen — on the condition that they adhere to additional safe management measures on top of those imposed on F&B outlets.
These measures include installing CCTV cameras throughout the premises, as well as locking all private rooms, and using only the main hall for F&B operations.
Businesses must also remain completely closed until they pass inspections and receive a conditional permit.
These "onerous requirements" — as Lau, the owner of Romance KTV Pub at Serangoon Garden Way, described — has proven a host of problems for KTV operators.
Not all of these karaoke outlets have a main hall in their premises, and having to lock all the rooms essentially means they are left with no space to even operate their pivoted business out of, which is the case for Per.
According to Lau, Ng and Per, the inspection process is also a tedious one.
Inspectors do not arrive the next day once the relevant documents have been submitted. Ng shared that some KTV operators have waited three weeks for inspection, but have not received any answer.
Said Ng:
Unfair to have blanket treatment
Another main gripe is the lumping together of family KTVs with other nightclubs and KTV lounges that offer illicit services.
The KTV operators at Choa Chu Kang find the blanket suspension of all KTVs unfair, and considered the KTVs that carried out errant actions as "black sheep" in the industry.
In his appeal letter, Per described the government's actions as "discriminatory", stating that these rotten apples continue to take advantage of loopholes and operate illegally, while 'cleaner' family KTVs are "criminalis[ed]" and forced to shut down.
"Every industry has black sheep, but to penalise all [KTVs], it's a bit harsh. You cannot blame the whole industry for this problem," Ng said.
Lau agreed, tacking on that he felt the recent suspension and subsequent safe management restrictions were "made in haste".
This distinction between family KTVs and nightclubs and lounges is something Per and other family KTV operators hoped to bring up to Wong during the MPS, and hope the government can consider in future policies.
A lot more at https://mothership.sg/2021/09/family-ktv-meet-people-session
If Jackson Teo was a little less magnanimous toward his staff, might Teo Heng have survived?
Looks like it is game over for real. RIP Teo Heng, 一路好走。
Teo Heng KTV studio's director cries in interview, this following the government's announcement to put on hold plans to reopen nightclubs, karaoke joints.........
Guess I know which establishment I'm giving my business to once they allow karaoke lounges to reopen.
'We don't wish to retrench them': Teo Heng KTV still paying workers' salaries in full despite losing millions
PERSPECTIVE: Teo Heng KTV, which has been around since 1989, has been forced to cease operations since March 2020 due to Covid-19 regulations.
Despite sustaining about S$500,000 in losses each month since then, the business is still paying the salaries of some 120 workers in full. Amid uncertainties over reopening, the family-run business is fighting to hold on for as long as they can before letting go of their staff.
Mothership speaks to Jean Teo, who has been with the company since the 1980s, to find out what goes on behind the shutters during this time, and why retrenchment will always be a last resort for them.
It is a Saturday afternoon in October.
A man wearing a Teo Heng polo T-shirt enters the karaoke outlet in Star Vista, which has remained closed since March this year due to Covid-19 regulations, and disappears behind its doors.
Teo Heng KTV has been around for three decades and within that time, established 14 outlets islandwide.
Their doors, unfortunately, have remained shut since March 2020 following the government's announcement that all bars and entertainment outlets are to be closed.
What happens to their staff in such circumstances?
Jean Teo, the sister of Teo Heng founder Jackson Teo and the company's business development manager, tells me more about how the homegrown karaoke business is coping during this time.
Over a phone call, Teo explains that a small portion of their staff is rostered to return to the outlets fortnightly to tidy and sanitise the place or test the sound system.
“Even though it's very uncertain, nobody can tell us when we can open, we still need to upkeep our outlets.”
About three to four workers are needed to clean a larger outlet, such as the one in Ang Mo Kio. Smaller outlets only require about two staff.
The company is putting in the effort to maintain their outlets in hopes that they can spring into action immediately when the government allows them to do re-open, Teo says.
Their staff also go for upgrading courses related to service and hospitality, which are funded under a SkillsFuture grant.
In addition, their manpower costs incurred when they send their employees for skills training are also defrayed by the Absentee Payroll (AP) funding offered by the government.
Teo says that they are still paying all of their employees in full during this entire time. Yes, including CPF contributions.
“We are all depending on our reserves, the longer it takes, we may have to consider closing more outlets. But we still want to keep our workers in full force."
The business is drawing on their savings to sustain paying some 120 employees, which includes both locals and foreigners.
Despite the support, however, they still lose around S$500,000 for every month that they are unable to open — working out to millions since their doors have remained shut for the past six months.
“We get rather emotional when we talk about Katong, which is our first outlet. It's really sad we have to close.”
When Teo Heng first started in 1989, there were doubts over whether a KTV that didn't serve alcohol could thrive in such a landscape.
Over the years, however, it has made a name for itself as an affordable, family-friendly KTV where patrons can even bring in their own food, or purchase drinks for the low price of S$1.
The pandemic, however, has delivered a blow right out of the blue.
In July, it was announced that the business would be shutting down seven of its outlets, including Teo Heng's first outlet at Katong Shopping Centre.
Its Sembawang outlet has also been closed, with another five outlets gradually folding as well.
But until they absolutely have to, they will hold on for as long as they can, Teo says.
When speaking about their staff, Teo brims with what can be described to be a mix of affection and wistfulness.
She tells me excitedly about their monthly Zoom meetings, and daily check-ins with their staff via WhatsApp to find out if they're doing okay. She also readily shares anecdotes about some of them.
Many of their staff are above the age of 55, and a good number have stuck with Teo Heng through the years, she says.
“We’re very traditional business people. We believe workers are like our 宝 (treasure in Mandarin)... they generate the income for us. Most of them have been working with us for a very long time. Some have been with us over 20 years. We started in 1989, and they have aged with us!”
More at https://mothership.sg/2020/10/teo-heng-ktv-perspective/
Manekineko also quite jialat:
https://www.sgsme.sg/news/karaoke-chain-teo-heng-may-soon-close-half-its-14-outlets-manekineko-also-feeling-stress
I doubt Teo Heng will collapse entirely; after all besides offering KTV entertainment it is also in the AV supplies and equipment trade.
Looks like Teo Heng isn't so heng this year.........
https://www.facebook.com/ktvteoheng/photos/a.348964198578897/1818281068313862/?type=3&theater