Louis Chua calls for rental tender reforms, proposes rental caps at NEA-operated hawker centres

SINGAPORE: In his speech on 13 November during the motion debate on support for Singapore’s hawkers, Workers’ Party Member of Parliament Louis Chua called for significant reforms to the rental tender process to assist hawkers and maintain affordable food prices for Singaporeans.

The Sengkang GRC MP acknowledged rental caps, such as those applied to the Geylang Serai Ramadan Bazaar, which aimed to make stalls more affordable for vendors and consumers.

Chua suggested implementing similar rental caps at NEA-operated hawker centres, especially in light of rising living costs that impact both hawkers and consumers.

Supporting the motion filed by Non-Constituency Members of Parliament from Progress Singapore Party (PSP), Chua argued against the current “price-only” tender system, noting that it prioritizes high bidders and contributes to escalating rental costs, which eventually pass down to consumers.

PSP’s motion calls on the government to review its policies relating to hawkers and the management of hawker centres to provide better support for hawkers to sustain and grow Singapore’s hawker culture, so that Singaporeans can continue to enjoy good and affordable hawker food.

Chua referenced the recent record-high rental bid of S$10,158 per month at Marine Parade Central Market and Food Centre as an example, warning that high bids like this set a precedent that raises market rates for other hawkers, creating a financially challenging environment for small operators.

He expressed concern that the current system favours large businesses or franchisors with greater financial resources over small, innovative hawkers.

Chua proposed switching to a Price-Quality Method (PQM) tender system, which would factor in food quality, heritage, operating hours, and support for young entrepreneurs, to create a more equitable environment for hawkers.

Chua calls for revert all SEHC to the NEA

He also called for all hawker centres, including those under the Socially-conscious Enterprise Hawker Centre (SEHC) model, to be reverted to the National Environment Agency (NEA) for centralized management.

He argued that bringing all hawker centres under NEA control would provide hawkers with long-term assurance that rents would be managed with their interests in mind, rather than the profit-driven motivations of SEHC operators.

Chua pointed out that the current system, where SEHC operators aim to make a profit, often leads to increased rents and other costs for hawkers, which may not align with the best interests of the hawkers or consumers.

He noted that SEHC operators have access to point-of-sale (POS) data, which incentivizes them to maximize rents, sometimes at the expense of hawkers. This environment, Chua warned, could stifle creativity and entrepreneurship, as established chains with more resources are often favored, potentially limiting the diversity of hawker food options.

Chua also highlighted some concerning practices by certain SEHC operators, such as imposing expensive monthly POS system fees, onerous contracts with strict terms, and penalties for breaches, which could harm hawkers’ ability to operate sustainably.

He urged the government to review these practices and ensure that the contractual terms between SEHC operators and hawkers are fair and supportive of the hawkers’ welfare.

By shifting all hawker centres to NEA management, Chua believed that the government could provide a consistent approach to pricing, policies, and support for hawkers, fostering a more sustainable environment for Singapore’s hawker culture.

Chua raises concerns over Budget Meals, questioning if hawkers are bearing the financial burden

Chua acknowledged the rising overhead costs for hawkers, which led to a 6.1% increase in food prices in 2023, while expressing concern that hawkers are hesitant to raise prices due to the potential impact on lower-income customers.

He arfued that hawker often forced to sell meals at a loss or compromise on quality by serving smaller portions or nutritionally unbalanced meals, thus struggling to maintain profitability.

Chua suggested that hawkers should have the autonomy to set their own prices based on their business costs, as they are best positioned to understand their financial needs.

To address the affordability issue, Chua proposed enhancing the CHAS card scheme, which currently provides discounts on medical bills and groceries for lower-income households.

By expanding the scheme to cover meal discounts at participating hawker centres, the government could offer more targeted financial relief to those in need.

He emphasised that the cost of these discounts should be borne by the government, not the hawkers, to prevent placing additional financial strain on them. He further suggested that this approach would be more efficient than the CDC vouchers, which some residents have struggled to access due to issues with their residence or familial circumstances.

Chua calls for urgent action to revitalise Singapore’s hawker industry amidst financial and cultural decline

Chua in his speech further emphasised the urgent need for the Singapore government to prioritise the revitalisation of the hawker industry, highlighting that the industry faces not only financial challenges but also cultural decline, with a median hawker age of 60 years old in 2019.

This demographic issue is concerning, as many hawkers are nearing retirement age, leading to the potential loss of traditional dishes. The disappearance of local food items like kueh tutu, appam, and Fujian oyster cakes is indicative of this decline.

Chua pointed out that existing government initiatives, such as the Hawkers’ Development Programme and the Hawkers Succession Scheme, have not been successful. Despite initial enthusiasm, only a small fraction of aspiring hawkers have completed their apprenticeships or continued running their businesses.

The Hawkers Succession Scheme, aimed at helping veteran hawkers pass on their businesses, has also seen low participation and few successful transitions. Chua argued that these programmes need a complete overhaul to better support the industry.

Given the cultural significance of hawker food, which was recognised by UNESCO as an Intangible Cultural Heritage in 2020, Chua called for a more focused approach to preserving this aspect of Singapore’s heritage.

He proposed consolidating existing programmes under a single, independent hawker academy. This academy could provide more tailored support to hawkers and streamline government efforts in nurturing the hawker ecosystem.

Chua stressed that the skills required for hawking are not like academic subjects and need a specialised, hands-on approach to ensure the survival of this vital cultural and culinary tradition for future generations.

Chua proposes foreign worker concession for elderly hawkers to address manpower shortages

Chua raised concerns about the manpower challenges faced by hawkers, particularly the rule restricting employment to Singapore citizens and PRs, and highlighted a policy inconsistency at Buangkok Hawker Centre.

He questioned the upcoming 2025 policy allowing hawkers to hire Long-Term Visit Pass (LTVP) holders as stall assistants, citing the limited pool of potential workers.

Chua proposed a solution allowing hawkers aged 60 and above to hire one foreign worker per stall, helping address manpower shortages while maintaining the quality of their offerings.