Government initiatives provide various forms of relief to hawkers and consumers facing rising costs, including subsidies and targeted assistance.
SINGAPORE – To help both hawkers and consumers navigate the challenges posed by rising costs and inflation, the Singapore government has rolled out several support measures. These efforts aim to alleviate the financial burden while ensuring that hawker food remains accessible and affordable.
Changes in Tender System for Hawker Stalls
Starting in November 2024, hawkers who submit high bids during tender exercises will no longer see their rents automatically adjusted to market rates after a three-year tenancy. This change, announced by the National Environment Agency (NEA), aims to encourage hawkers to be more prudent in their bidding decisions. The new policy will not affect current hawkers but applies to future tender exercises for over 6,000 cooked food stalls and 7,000 market stalls under NEA’s purview.
Support for Consumers
To help consumers cope with the rising cost of living, the Singapore government has enhanced several support measures. The Assurance Package, first introduced in 2022, now includes expanded CDC vouchers, which have been issued annually since 2020 and can be redeemed at participating hawker stalls. Additionally, the government has increased the GST Voucher scheme to support lower- and middle-income households. In 2023, the GSTV-Cash component was raised, benefiting those with daily living expenses, including food.
A personal income tax rebate of 50% for the 2024 assessment year, capped at $200, will benefit mostly middle-income workers. The government has emphasized its commitment to adjusting social support schemes as necessary, particularly to address gaps for some households. Moreover, the Ministry of National Development introduced the Budget Meal initiative in 2018, ensuring that new HDB rental coffee shops offer affordable meal options. This initiative will expand to all 374 HDB coffee shops by 2026.
Various constituency-based initiatives also support low-income residents, such as the Belanja-a-Meal scheme, which provides free meals to eligible residents, and the $1 meal deals in areas like Zhenghua and Bukit Panjang. Private-sector initiatives, such as DBS Bank’s hawker meal scheme, also help by providing rebates on purchases.
Support for Hawkers
Hawkers have also benefitted from government initiatives, including the CDC Voucher scheme, which has helped increase sales by attracting new customers. Some hawkerpreneurs report that the vouchers contribute up to 10% of their revenue. Additionally, the joint tenancy scheme allows hawkers to share rental costs and work fewer hours, providing more flexibility.
In response to the ongoing manpower crunch, a rule change will be implemented starting January 2025, allowing long-term visit pass holders (who are not spouses) to work as stall assistants. This will help ease staffing shortages in hawker centres.
Other support measures include an incubator stall programme, which helps aspiring hawkers reduce start-up costs by providing pre-fitted equipment. The Hawkers Succession Scheme enables retiring veteran hawkers to pass on their skills, recipes, and stalls to aspiring successors. There is also a Hawkers’ Development Programme that equips current and aspiring hawkers with the necessary skills to run their businesses successfully.
Additionally, the government provides subsidies to help hawkers improve productivity, such as grants for kitchen automation equipment and digital solutions, and subsidies for centralised dishwashing. For Pioneer Generation hawkers, who make up around 30% of cooked food stallholders, rental costs are heavily subsidized at approximately $300 a month, with the option for family members to inherit the stall at the same low rent.
The government is committed to monitoring trends in the hawker industry and continually improving support measures to help both hawkers and consumers cope with the ongoing challenges posed by inflation and rising costs.
