NEA adopts transparent tender system for food stalls

We thank Mr Michael Lum for his feedback (NEA must relook tender system for hawker stalls; Sept 1).

The National Environment Agency (NEA) lets out vacant stalls in our hawker centres in a fair and transparent manner.

To assist potential tenderers in deciding how much to bid, information such as Tender Notices, Provisional Tender Results and a list of successful tender bids for the past 12 months are also made available on NEA's website and our one-stop information and service centre.

Of the 1,006 successful tenderers for cooked food stalls in the last three years, less than 4 per cent terminated their tenancies upon signing the tenancy agreement due to reasons such as tenderers changing their minds on their choice of stall.

The average successful bid for our 6,000 cooked food stalls over the last three years is $1,514 per month. The lowest bid was $5, and almost all bids were less than $5,000 per month.

We encourage bidders to consider the overall overhead costs when making their submissions and ensure that their business can be sustainable.

NEA has put in place various measures to moderate hawker stall rentals.

These include banning subletting or assignment of hawker stalls to prevent rent-seeking behaviour, which could drive up food prices.

Also, in 2012, the reserve rental price was removed to allow stall rentals to fully reflect market conditions, where tenderers can bid at the price that they deem is fair and sustainable for their business.

Today, about 85 per cent of cooked food stallholders at hawker centres pay monthly rentals below $1,500.

Indeed, hawker centres are our "community dining rooms".

We will continue to seek ways to sustain our hawker trade and preserve our hawker heritage.

With Singaporeans' support for our hawker trade, cultivating a gracious and caring society and playing our part in keeping hawker centres clean, we can look forward to enjoying tasty and affordable hawker fare in our beloved hawker centres.

Ivy Ong (Ms)

Director

Hawker Centres Division

National Environment Agency

A version of this article appeared in the print edition of The Straits Times on September 06, 2018, with the headline 'NEA adopts transparent tender system for food stalls'. Print Edition | Subscribe