How Singapore supports hawker centre stallholders — Channel NewsAsia
In Singapore, a socially oriented model for managing hawker centres helps food stallholders develop their businesses while keeping food prices affordable for residents of local neighbourhoods. Channel NewsAsia reports on how this system works.
Stall support model
The Socially-conscious Enterprise Hawker Centre model was introduced in 2011. The state pays for the design and construction of such centres, while experienced food-sector operators are selected through a tender process to manage them. Operators receive a management fee from the government, are responsible for cleanliness and food variety, and also pay the state market rent for the premises.
Stallholders are provided with business support, rental assistance and community initiatives. In particular, rent is capped at the market level, while a gradual rent increase is applied during the first two years of a centre's operation. Operators also assist with social media marketing, administrative matters, applications to hire workers and the allocation of days off.
Rent, marketing and communication with authorities
Sahul Hamid Asan Gani, the owner of the Rizqia Muslim Food stall at Buangkok Hawker Centre, said that the gradual rental scheme gave him time to build a customer base when he started operating. The centre's operator, Fei Siong Social Enterprise, also helped him when he had difficulties paying rent.
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The report notes that vendors face challenges finding and retaining assistants, rising ingredient costs, and long working hours in a hot and humid environment. Rao Jianfang, owner of Long Ding Seafood at Anchorvale Village Hawker Centre, said that declining sales over time are a common problem. Kopitiam's operations team organises events to attract visitors, including activities during Chinese New Year.
During the COVID-19 pandemic, rent rebates from Kopitiam helped ease financial pressure on the Lobster King Pao Fan stalls operated by Gao Yu Piao. SEHC operators also collect vendors' feedback on food and gas costs and discuss possible solutions with Singapore's National Environment Agency (NEA), including minor adjustments to food prices.
Use of operating surplus
At least 50% of the operating surplus under the model must be reinvested for the benefit of the hawker centre or its vendors. The funds may be directed towards rent rebates, training or marketing. At Ci Yuan Hawker Centre, vendors were consulted on choosing between a one-off rent rebate and food vouchers; the vouchers were distributed across different dates and stalls to encourage repeat visits.
