The National Environment Agency introduces a new policy to moderate stall rents and encourage more sustainable bidding practices among hawkers.
On November 4, 2024, the National Environment Agency (NEA) introduced a new measure to discourage hawkers from submitting excessively high bids for stalls in hawker centres. Under the new policy, stalls with high bids will no longer see immediate adjustments to market rates after the three-year tenancy. Instead, the downward adjustment of rents will be staggered over a longer period.
Previously, after hawkers paid their high tendered rents for the first three years, the stall rental would be reduced to the assessed market rate (AMR) immediately at the start of the second tenancy term. With the new approach, the adjustment will occur gradually. For example, if a hawker’s rent is higher than the AMR, it will be reduced by 50% of the difference between the tendered rent and AMR during the second term, with full market-rate adjustment happening after the third term.
The policy aims to encourage hawkers to be more prudent with their bids, taking into account long-term business sustainability and costs. The new rules are also expected to prevent inflated bids from driving up rents, which can be a barrier for new hawkers with fewer financial resources.
The NEA clarified that this new policy does not affect existing hawkers or those paying subsidized rates. Additionally, the agency has been providing more resources for tenderers, including data on previous bids and business cost estimation tools to help hawkers make better decisions.
