The Big Read: Singaporeans want cheap and good hawker food. Hawkers need to make money. How do we square the circle?

Singapore now has 120 hawker centres and 776 caffeine stores.

The National Environment Agency ( NEA )’s ( NEA ) Hawker Centres Group regulates the 120 hawker centers ‘ tenancies and public health concerns.

The 120 hawker centres home a full of 6, 000 cooked foods booths, and they had an average occupancy rate of 97 per share in 2023, said a NEA official in response to TODAY’s questions.

Some 30 per cent of these stallholders pay sponsored fee ranging from S$ 192 to S$ 384 a month, the official added.

Among these 120 stalls areas, &nbsp, 107 are immediately managed by NEA and various community authorities. &nbsp,

Regular shop sensitive exercises are held to fill vacant booths in these hawker centers.

A kiosk will be given to the highest eligibility bid, according to NEA, and there is no maximum bid price.

According to the NEA official, some tenderers have been able to secure kiosks for as little as S$ 1.

As a reference point for future tenderers, effective bid prices for the awarded stalls are published online.

Effective tenderers will continue to receive the same stall rent for the first three years of their lease as long as their stall prices remain the same ( at the delicate bid cost ).

Later, the stall’s renting is adjusted to the industry price as determined by an independent professional assessment. NEA said that the valuation considers elements such as the sales of the stalls heart, barn dimensions, and market conditions.

The middle rental across non-subsidized cooked food kiosks at stalls centers has remained constant at about S$ 1, 250 since 2015, according to Dr. Koh Poh Koon, Senior Minister of State for Sustainability and the Environment.

Outside of the 107 NEA-managed hawker centres, the other 13 hawker centres are &nbsp, social enterprise hawker centres&nbsp, ( SEHCs ) managed by NEA-appointed operators. These operators include Fairprice Group Hawker Centre, Fei Siong Social Enterprise, Timbre Hawkers, JW 50 Hawker Heritage, and Canopy Hawkers Group.

The SEHC type arose from&nbsp, a proposal put forward by the Hawker Centres Public Consultation Panel&nbsp, in 2012.

The screen was established to offer suggestions for the new hawker centers that the government had promised to build following a nearly three-decade break.

The panel suggested that the management models of the new hawker centers should ensure the community “derives maximum benefit,” give employment opportunities to lower-income and less privileged individuals, and assist those who aspire to be in the food industry. It also recommended that a social enterprise be defined as” a regular business that maximizes profits to deliver social impact.

In evaluating requests, Minister for Sustainability and the Environment Grace Fu stated in January this year to make sure that barn rent at the SEHCs are kept reasonable and affordable. NEA takes into account the proposed leasing, operating expenses, and secondary fees to be paid by stallholders, such as board cleaning fees and main cleaning costs.

The technician is not permitted to charge stallholders book that is higher than the one that is listed in the delicate bid or to put the stall rentals up for bid.

Ms Fu noted that SEHCs ‘ middle barn renting is comparable to that at close stalls centers run by NEA, taking into account stall size and features.

The current network of SEHCs form 13 of the&nbsp, 20 new hawker centres&nbsp, which the authorities said it would build in Singapore by 2027. &nbsp,

The 20 new hawker centres will add more than 800 cooked food stalls and&nbsp, help to further moderate rentals.

The 13th and latest addition to the market, Anchorvale Village Hawker Centre at Sengkang, opened in June.

Separately, of the 776 coffee shops in Singapore, 374 are owned by the Housing and Development Board ( HDB) and rented out to operators.

The remaining 402 were sold, making them privately held. &nbsp,

Since 1998, HDB has only rented out coffee shops.

Kimly Group, one of the most well-known coffee shop owners in this area, runs and manages a network of 85 locations and stalls.

Other big players include Chang Cheng Mee Wah, which runs more than 30 coffee shop outlets islandwide, and Kim San Leng, which operates 18 coffee shops.

Some of these players also rent out other stalls while operating some in their coffee shops. &nbsp,

Since 2018, new HDB coffee shops have been let out via price-quality method tenders.

In accordance with this approach, HDB would take into account both the tender price and the proposal’s quality when awarding its tenders.

Additionally, it stated that the tenders are evaluated holistically using factors like affordability considerations in addition to rent alone.