Singapore’s Hawker Centre Model Balances Stallholder Needs

The Ministry of Sustainability and the Environment (MSE) in Singapore has introduced a socially conscious enterprise hawker centre (SEHC) model aimed at balancing the needs of stallholders and operators while ensuring flexibility in business strategies. This announcement was made by Senior Parliamentary Secretary for Sustainability and the Environment, Goh Han Yan, during a parliamentary session on September 24, 2023.

Goh’s comments came in response to concerns regarding tenancy agreements at Bukit Canberra Hawker Centre, particularly a clause that required hawkers to provide free meals through a pay-it-forward initiative. Following public feedback, the operator, Canopy Hawkers Group, has agreed to remove this clause when renewing the hawkers’ agreements this month.

In response to questions from Louis Chua, Member of Parliament for Sengkang, Goh clarified the role of the National Environment Agency (NEA) in overseeing the contracts associated with SEHCs. She explained that the NEA ensures operators comply with requirements that protect both patrons and stallholders. Goh stated, “These requirements strike a balance between ensuring that patrons’ needs are adequately served and safeguarding stallholders’ well-being.”

Guidelines and Tenant Support Initiatives

Since 2018, the NEA has established basic guidelines regarding tenancy terms, including limits on penalties for contractual breaches. These agreements are subject to NEA review before stallholders sign, allowing for necessary adjustments to clauses. Goh emphasized that most stallholders have been aware of the conditions when renting their stalls.

Addressing the charitable meal schemes, Goh noted that the pay-it-forward initiative is unique to Bukit Canberra Hawker Centre. She described it as a “well-intentioned” effort to assist low-income patrons. The NEA was informed about this initiative, and stallholders were made aware of it prior to their decision to rent. Although the operator has not yet implemented the scheme, they have chosen to retract the requirement following feedback from both stallholders and the public.

On the topic of affordable meal options, Goh confirmed that SEHC operators are mandated by NEA tender conditions to maintain affordability. Most operators comply by requiring each stall to offer at least one value meal while allowing for higher pricing on other menu items. “Importantly, stallholders are not expected to make a loss from selling such value meals,” Goh stated.

Discounts and Feedback Mechanisms

Regarding discounts offered through operators’ apps, Foo Cexiang, Member of Parliament for Tanjong Pagar, inquired about the requirement for stallholders to absorb a 10 percent discount. Goh explained that these apps are part of broader efforts to attract customers. Operators bear the cost of the app development and marketing, while stallholders help by providing discounts in exchange for increased sales.

Goh reassured that stallholders enter agreements with a clear understanding of their responsibilities regarding value meals. She acknowledged that different food types may require different pricing strategies, indicating that some stalls may find it easier to implement value meals than others.

According to NEA surveys conducted between 2021 and 2024, satisfaction levels for various aspects of SEHC management have remained above 80 percent, with stall occupancy rates around 96 percent. Operators are required to hold quarterly feedback sessions with tenants, which NEA representatives attend, providing a platform for hawkers to voice their concerns.

One operator has already received feedback regarding rising gas costs and is exploring more affordable alternatives after its current gas contract expires. Through this collaborative approach, the SEHC model aims to create a sustainable and responsive environment for both hawkers and patrons in Singapore.