With increasing food prices and utility costs in Singapore, even though the government released a slew of measures to help Singaporeans manage, people are still concerned about the rising cost of living.

Members of Parliament (MP) raised questions in Parliament on Oct. 3, 2023, particularly about hawker food price increases.

Rising hawker food prices

Sembawang GRC MP Mariam Jaafar pointed out that there has been a "continued rise in food prices at hawker centres" and asked if there was feedback from hawkers that "budget meals" are "increasingly difficult to sustain".

Koh Poh Koon, Minister for Sustainability and the Environment, responded that the National Environment Agency (NEA), which oversees hawker centres in Singapore, does not regulate the prices of cooked foods sold at hawker centres.

NEA instead aims to provide hawkers with a conducive environment to set affordable food prices.

"Thus far, despite rising costs, affordable meal options remain available at hawker centres, including those managed by NEA and town councils, as well as socially conscious enterprises — where the operators are required to keep food affordable and have done so by ensuring at least one budget meal option per stall," he explained.

Jaafar subsequently highlighted that there's a growing disparity between lower-priced and regular-priced items, the prices of lower-priced items are also increasing.

She gave an example, "A S$3.80 budget meal has become a S$4.20 budget meal in one of my coffee shops."

Jaafar then asked if there are risks for budget meals to become unsustainable for hawkers and if measures, such as rental rebates, will be extended to help them out.

NEA to watch closely if hawkers need more help

In response, Koh said that while different stalls experience higher operation costs in various ways, NEA does provide some help in moderating their rentals.

"In times of need, there has been some rent rebates given to these hawkers. We will watch this pressures on hawkers closely."

He also suggested a longer-term sustainable option — to see how hawker stall owners can become more productive.

He gave examples of sharing resources among the owners, such as centralised cleaning and dishwashing, so that they can incur less costs individually.

On the consumers' end, he said the cost of living assurance packages, including CDC vouchers, can help residents have some extra cash to spend at these hawker centres and also bring some revenue benefit to the hawkers.

"So I think with these kinds of efforts in a multi-prong manner, we hope to reduce the cost impact on consumers while helping our hawkers to remain sustainable."

Concerns about profiteering

Jaafar also raised concerns that the increases in water and electricity may trigger another round of price increases at hawker centres and coffee shops.

"There's not a lot of water in a bowl of noodles, nor does it take much water to clean a stall," she said.

She asked how the Committee Against Profiteering (CAP) can take a proactive approach to ensure that these price increases do not translate into opportunities for profiteering.

The Minister for Trade and Industry, Alvin Tan, replied that Singapore has a robust regime to ensure that businesses compete fairly and that consumers have sufficient choices.

"Should a member of the public come across egregious cases of potential profiteering, they can report this to the CAP via three channels," he said.

These channels include:

• An online feedback form at cap.gov.sg.
• A telephone hotline: 67970618
• Visit any of Singapore's 112 community clubs

Since its reconvening in March 2022, the CAP has investigated 32 cases involving specific allegations of Goods and Services Tax (GST) misrepresentation. The businesses concerned have been cooperative and have ceased their practices of GST misrepresentation, Tan said.

There have not been any repeat complaints of GST misrepresentation against the same shops.

Profiteering or inflation?

Sengkang GRC MP Jamus Lim asked for clarifications on what model the ministry or committee applies to distinguish potential profiteering from general inflation.

Tan replied that there are monetary policies in place to dampen inflation

He added that the CAP noted an increase in feedback after the first GST increase to 8% earlier this year and will carefully monitor the situation while gathering feedback from the ground before taking appropriate measures.

Top photos from Ministry of Communications and Information (MCI) and Khine Zin Htet