From ‘flexible rents’ to foreign manpower: PSP’s proposals on supporting hawkers and what the government says
PSP: ALLOW STALLS TO HIRE ONE WORK PERMIT HOLDER
To address the manpower shortage, Mr Leong proposed that each cooked food hawker stall, including drinks and cut fruit stalls, should be allowed to employ one work permit holder as a stall assistant.
“Our policy proposal will not undermine the Singaporean character of our hawker centres because only one work permit holder is allowed per stall,” he said.
GOVERNMENT: FOREIGN MANPOWER MAY ALTER NATURE OF HAWKER CENTRES
The government’s stance of only allowing citizens and permanent residents to work in hawker centres is meant to safeguard this aspect of Singapore’s identity, said Dr Koh.
“A full liberalisation for foreign manpower may alter the nature of our hawker centers significantly,” he said.
He pointed to the recent announcement that hawker stalls will be allowed to hire long-term visit pass holders as assistants from Jan 1 as a way the government is trying to strike a balance.
“Our hawker centres … are an integral part of our cultural heritage. They are unique and their local nature is something we want to preserve, which is why we talk very carefully about making such moves,” he said.
He said concerns were raised in 2010 about seeing more foreigners working in hawker centres, and Dr Koh said some Singaporeans may still not be able to accept that.
PSP: GOVERNMENT SHOULD PROVIDE TARGETED DISCOUNTS
Mr Leong proposed that instead of forcing hawkers to provide “budget meals” at their own expense, the government should pay for targeted food discounts for Pioneer, Merdeka and CHAS cardholders at all hawker centres and provide lower-income households with more CDC vouchers.
“I do not believe that there is any other industry where we contractually force suppliers to sell items below a certain price,” said Mr Leong.
The budget meal scheme was introduced in 2018 for new coffee shops let out by the Housing and Development Board (HDB). It was extended last year to all other HDB coffee shops, and more recently expanded to private chain operators.
GOVERNMENT: AFFORDABLE BUT NOT BELOW MARKET PRICE
Senior Minister of State for National Development Sim Ann rejected Mr Leong’s assertion that the provision of budget meals at HDB coffee shops meant that hawkers had to sell them below market prices.
“The prices should be affordable compared to surrounding options, but we do not require them to be lower,” said Ms Sim.
She added that not every stall has to have a budget meal, as long as the operator of the coffee shop ensures that four to six of such meals are available.
Rent rebates are also provided for the first year that budget meals are provided, and the operator is required to pass on the savings to stall holders who offer the budget meals, said Ms Sim.
Dr Koh also said stall holders under the social enterprise model are not expected to make a loss selling “value meals”. Operators can propose to revise the price and the NEA will review it based on the market situation.
On PSP’s proposal to help vulnerable groups with food discounts and more CDC vouchers, Senior Parliamentary Secretary for Finance Shawn Huang said the government is already providing targeted support to those in need.
A middle-income household with two young children will get about S$4,400 in rebates, payouts and support this year, while a lower-income household with two young children will get about S$6,500, he said.
In Budget 2024, the government also announced an increase in quarterly Silver Support payments and the income threshold to qualify for support to provide more help to low-income seniors.
PSP: SET UP CENTRAL PROCUREMENT SYSTEM FOR CHEAPER INGREDIENTS
Ms Poa also offered a couple of policy suggestions, such as setting up a central procurement system to supply hawkers with ingredients at lower prices through bulk purchasing.
“Hawkers have the option to get their supplies through such arrangements or they could still choose to use their own suppliers if they think that it is of better quality or it gives them some other competitive advantage,” she said.
She said a centralised procurement system for medicines similarly exists in Singapore’s public healthcare sector.
“It would not be a huge stretch to set up a similar centralised procurement system to bulk buy essential raw ingredients used by hawkers in Singapore.”