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“Wrong to increase rent during this period”: Netizens lambast NEA over its justification on 40% hawker stall rent increase

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The National Environment Agency’s (NEA) justification on hawker stall rent increase has inevitably sparked debate online, with many netizens deemed it a “cruel” move to increase rental rates during this challenging period regardless of how “little” the increase will be.

The issue was first brought up by Makansutra founder KF Seetoh on Facebook last Friday (25 Jun), who shared a letter released by the NEA to a hawker where the revised rent was “almost 40 per cent” higher than the previous rate.

He proceeded to slam the agency for raising hawker stall rents amid challenging times, saying that “it’s a horrible timing” to do so now.

“Here we all are doing our best to #supportourhawkers, and there they are at same time raising the hawkers rent by almost 40%… Why oh why I ask. You may need to claw back to top up the national coffers but do your leaders even know it’s a horrible timing to do so now. This hawker had been languishing in sales this whole year,” said Mr Seetoh.

The next day (26 Jun), NEA issued a statement on Facebook clarifying that the rental rates for hawker stalls have been “kept unchanged throughout three years”, adding that monthly hawker stall rents can be “as low as a few hundred dollars, or even S$1”.

It explained that the renewal of tenancy three years later will be based on prevailing market rates assessed by independent professional valuers, which can be higher or lower than the previous rate.

“In recent years, rental revision upwards at tenancy renewals in our hawker centres have not exceeded $300. On the other hand, there have been rental revisions downwards of more than $300 upon tenancy renewals.

“It is misleading to look at percentage increases alone as a $300 increase from a low rental will appear as a large percentage increase,” said the agency.

NEA also pointed out that it had frozen rental increases from 1 April last year to 31 March this year due to the difficulties caused by the COVID-19 pandemic.

The agency added that hawkers were provided with five months of rental waivers and three months of subsidies for table-cleaning and centralised dishwashing services, as well as the Self-Employed Person Income Relief of nine months for eligible hawkers.

However, Mr Seetoh responded saying that it is about “timing and empathy, not the quantum nor the earlier well-intended rent waivers”.

In a Facebook post on Monday (28 Jun), he shared a letter received by a pair of hawkers, which indicates the amount of rental hike offered to them has gone from S$800 to S$1,100 per month. The date of the letter was censored but the year in which the revised charges would apply is “2021”.

Mr Seetoh noted that the hawkers now have to pay S$1,550 per month, adding that they have decided to close permanently when their term ended.

“It may not sound like alot to many, but the hawker said he will accept and ‘move on’ which really meant they will quit and close permanently when the term ended. That ‘little’ increase’ meant alot to the hawker. Both are now jobless and contemplating the next move,” he said.

Netizens condemned NEA’s move to increase even just “a little” in hawker stall rent

Meanwhile, many netizens condemned the NEA’s move to increase the hawker stall rent, saying that it is “bad timing” to impose even just “a little” increase now, given that dine-in restrictions have severely hampered demand and hawkers are still struggling to earn for livelihood.

Penning their thoughts under the comments section of the NEA and Mothership’s Facebook posts, netizens urged the Government to freeze hawker stall rent increases until the situation improves – or at least when group sizes for dining-in at eateries are increased to more than two persons.

One netizen wrote: “Increasing 100 monthly, means either to pass cost to customers or sell more, if they have customers. Otherwise, they are paying out of pocket. Adding cost now is adding fuel to a fire for hawkers who are tired of fighting it for the past 14 months when covid measures started in 2020.”

“No matter how you play with mathematics, an increase in rental during an epidemic when shops have much less business is cruel from a government elected by the people,” said another Facebook user.

Some netizens pointed out that the NEA is “giving from one hand and taking back from the other hand” by offering rent waivers to hawkers, and then increase the hawker stall rent rates.

“Stop saying your stall rentals are less than commercially operated. Commercially operated stalls cannot charge low prices like hawkers. If we want a thriving hawker culture which has many benefits, we need to support them with subsidised rentals to make it an attractive place for the younger Gen to take over,” said one netizen.

Meanwhile, a handful others were wondering why the NEA would think that the 40 per cent increase is not as high as it was claimed to be, or that the S$300 increase is not a lot for hawkers, given that these would still be a “significant increase” to many people.

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ST Telemedia Global Data Centres reinforces commitment to Digital India with US$3.2 billion investment

ST Telemedia Global Data Centres (STT GDC) is investing US$3.2B to expand its data centre capacity in India by 550MW, tripling its IT load. The move supports India’s growing digital economy and aligns with PM Modi’s Digital India vision, discussed during his recent visit to Singapore.

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5 days ago

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6 September 2024

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ST Telemedia Global Data Centres (STT GDC), a leading data centre colocation services provider headquartered in Singapore, has announced a major investment of US$3.2 billion (INR 26,000 crores) to significantly expand its data centre capacity in India.

This investment will add 550MW of data centre capacity over the next 5-6 years, nearly tripling the Temasek-backed company’s IT load capacity to meet the increasing demands of India’s rapidly growing digital economy.

The expansion is set to support the surge in data consumption, cloud computing, digital transformation, and the adoption of artificial intelligence (AI) applications across India. STT GDC, which already holds a 28% market share in India by revenue, views this move as a reflection of its confidence in the country’s digital infrastructure needs and the broader vision of Digital India.

“India’s digital economy is growing at almost three times the overall GDP growth rate and is expected to reach US$1 trillion by 2027-2028,” said Bruno Lopez, President and Group CEO of STT GDC.

“As we celebrate our 10th anniversary, this ambitious expansion underscores our commitment to Digital India, and we are confident in our ability to contribute to its long-term success.”

STT GDC India, majority-owned by STT GDC in partnership with Tata Communications Ltd, currently operates 28 data centres across 10 cities with a total capacity of over 318MW.

It serves approximately 1,000 enterprise clients, including many Fortune 500 companies. STT GDC India has also been recognized as a Great Place to Work for five consecutive years and is ranked among the Best Places to Work in Asia.

The announcement follows STT GDC’s participation in a Business Roundtable with Indian Prime Minister Narendra Modi on 5 September 2024, hosted by the Singapore Business Federation.

This strategic engagement further emphasizes STT GDC’s commitment to supporting India’s digital transformation through long-term investment and collaboration.

Prime Minister Modi’s visit to Singapore resulted in various agreements across key sectors, including a healthcare cooperation agreement between India and Singapore to collaborate on healthcare delivery, medical research, and digital health solutions.

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Giant to shut Toa Payoh supermarket in September, ninth closure in 2024

Supermarket chain Giant will shut its ninth store in Singapore by September 2024, citing tough competition from online retailers and grocery rivals. The Toa Payoh outlet is part of a series of closures this year, reflecting broader regional challenges for its parent company, Dairy Farm International (DFI).

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6 days ago

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6 September 2024

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SINGAPORE: Supermarket chain Giant will close its ninth store in Singapore by September 2024 as it faces intense competition from online retailers and other grocery chains.

The store, located in Toa Payoh Lorong 4, is the latest in a series of closures that have taken place this year, as reported by The Straits Times.

Since February, Giant has shut down a hypermarket in Sembawang Shopping Centre, supermarkets in Bishan, Ang Mo Kio, and Bukit Panjang, along with four smaller “Express” stores in Nanyang Technological University, Pasir Ris, Redhill, and Punggol.

Following the closure of the Toa Payoh outlet, Giant will operate 45 stores across Singapore, down from 53 earlier this year.

Despite these reductions, the grocer has also opened a new outlet in Tengah in 2024.

From 2020 to 2023, the number of Giant stores in Singapore remained relatively stable, hovering between 53 and 55.

However, the recent closures highlight broader challenges faced by its parent company, Hong Kong-based Dairy Farm International (DFI), which has seen a contraction in its regional presence.

DFI, which first entered the Malaysian grocery market in 1999, exited the country in March 2023 by selling its stake in GCH Retail, the operator of the Giant, Mercato, and Giant Mini chains.

Similarly, in 2021, PT Hero Supermarket, a retail group majority-owned by DFI, closed all of its Giant supermarkets in Indonesia after the group’s revenue fell by 34% year-on-year.

In April, the Business Times reported that DFI had put the 9,731 sq ft Housing Board retail unit in Toa Payoh, currently occupied by Giant, up for sale at a guide price of S$16.5 million.

The company stated that the sale was part of a strategy to reallocate resources and focus on improving customer experience in other stores.

DFI’s half-year earnings report published on 1 August 2024 revealed that its food operations in Singapore experienced declining sales due to challenging consumer sentiment.

Despite this, the group posted underlying profit growth, reaching US$76 million.

The company attributed this profitability boost to an improved product margin mix and effective cost control measures.

In response to the Singapore’s Toa Payoh outlet closures, a DFI spokesperson told ST that the company continuously evaluates its store network and adapts to market trends and consumer needs.

“Giant and Cold Storage remain core businesses of DFI Retail Group, and our commitment to growth and expansion in Singapore remains unchanged,” the spokesperson added.

According to DFI’s official website, the group operates in 13 countries and territories, with around 11,000 outlets and a workforce of approximately 200,000 employees.

In Singapore, DFI operates not only Giant supermarkets but also 7-Eleven convenience stores and the Guardian health and beauty chain.

The group’s parent company, DFI Retail Group Holdings Limited, is incorporated in Bermuda and is primarily listed on the London Stock Exchange under the equity shares (transition) category, with secondary listings in Bermuda and Singapore.

DFI’s businesses are managed from Hong Kong by DFI Retail Group Management Services Limited, through its regional offices. The group is a member of the Jardine Matheson Group.

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