Leong Mun Wai challenges govt’s defence of social enterprise model, says it’s incompatible with hawker spirit

SINGAPORE: In his concluding speech during the motion debate on support for Singapore’s hawkers in Parliament on 13 November, Non-Constituency Member of Parliament (NCMP) Leong Mun Wai raised concerns regarding the sustainability of hawker culture, particularly in the long term.

The NCMP from the Progress Singapore Party (PSP) highlighted that if key issues were not addressed, they could threaten the livelihoods of hawkers and the future of hawker culture in Singapore.

First, he questioned the effectiveness of the social enterprise model for hawker centres, expressing doubts about its actual contributions compared to the challenges it has introduced.

Leong argued that the corporatised nature of the social enterprise model is incompatible with the free, sole-proprietorship spirit of individual hawkers.

He also expressed concerns over potential conflicts of interest when private operators manage social enterprise hawker centres.

In response, Leong suggested that experienced civil servants from a government-managed body, like a proposed new agency called “Hawker Singapore” proposed by PSP, might be better suited to manage and support hawker centres to ensure their success and sustainability.

Leong acknowledged the advantages shared by Senior Minister of State for Sustainability and the Environment Dr Koh Poh Koon regarding the current tender system for hawker stall allocation.

However, he questioned the rationale behind the system’s renewal process, where high tender bids are reduced to a lower “assessed market rent” after the initial three years.

Earlier on 4 November, the National Environment Agency (NEA) annoucned that the rental renewal policy for successful hawker tenders will be revised to mitigate excessively high tender bids.

Previously, tendered stall rentals were adjusted down to the assessed market rent immediately after the first tenancy term, which lasts three years.

Under the revised scheme, for the second tenancy term, rentals will be adjusted downwards by 50 per cent of the difference between the tendered rent and the assessed market rent.

For example, if a hawker successfully bids S$5,000 and the assessed market rent is S$1,000, they will pay S$3,000 in rent for the second term. From the seventh year, or their third tenancy term, the rent will revert to the assessed market rent of S$1,000.

Leong suggested that it might be more effective to maintain the original bid amount or require a fresh round of bidding after three years.

He expressed concern that the current tender system contributes to the escalating prices in HDB coffee shops and food courts, which in turn drives up the cost of cooked food in the long term.

Leong argues that restricting hawkers from employing work permit holders puts them at a competitive disadvantage

Thirdly, Leong raised a concern about the disparity between coffee shops and food courts being allowed to employ work permit holders, while individual hawkers are not permitted to do so.

He argued that this puts individual hawkers at a competitive disadvantage, especially when compared to corporatized hawkers in food courts.

Leong emphasised that to preserve the unique Singaporean character of hawker culture, it is crucial to ensure that individual hawkers can remain competitive.

He argued that denying them the ability to employ work permit holders continues to place them at a disadvantage, ultimately making them the “underdogs” in the industry.

He also criticised the imposition of budget meals and discounts on hawker food, noting that the burden of these initiatives falls on hawkers themselves.

He believed that the government should find ways to meet its objectives without forcing hawkers to bear the cost.

Leong Mun Wai warns that hawker culture is at risk due to rising costs, manpower shortages, and corporatisation

Leong noted that two months ago, a bill was debated in Parliament to address the needs of platform workers, who are also essential to Singapore’s economy.

Leong emphasised that hawkers should be regarded as another critical group of workers requiring attention and support.

Leong shared that many of the pioneer hawkers in Chinatown started humbly, striving to earn enough to support their families.

Despite facing modest profits, they worked tirelessly to provide affordable and quality food, which allowed Singaporeans to enjoy delicious hawker fare for generations.

However, he expressed concern that today, hawkers are grappling with significant challenges, including high rents, a shortage of manpower, unfair competition, and the growing influence of corporatisation.

At the same time, society’s expectation for hawkers to continue providing affordable meals has only increased.

He warned that the current situation is unsustainable and that, if left unaddressed, Singapore’s traditional hawker culture—fueled by the dedication and entrepreneurial spirit of individual hawkers—will gradually fade.

While corporatisation in the hawker industry is a natural evolution, Leong argued that it is crucial to ensure a level playing field so that individual hawkers can continue to thrive alongside corporatized businesses.

Leong concluded by stating that the current failure of hawker culture is, at least in part, due to government policies, and it is now up to the government to act on these concerns and offer better support to safeguard the future of Singapore’s hawker scene.

After a five-hour debate with participation from 11 MPs, along with clarifications from Parliamentary Secretary for Finance Shawn Huang, Senior Minister of State for National Development Sim Ann, and SMS Koh on the government’s stance towards supporting hawkers, Parliament passed an amended motion proposed by PAP MP Edward Chia, which was based on the original motion by PSP.

Leong noted that PSP supports Chia’s amendments to the party’s proposed motion, as it reflects unanimous agreement among all MPs on the importance of safeguarding Singapore’s hawker culture, recognising it as a vital national institution and cultural heritage.