CDC vouchers: S'poreans have spent over $163m out of $250m

Community Development Council (CDC) vouchers worth $100 given to every Singaporean household to use at heartland shops and food stalls this year as well as last year have been well received, with more than $163 million out of $250 million spent to date, said Ms Low Yen Ling, Minister of State for Trade and Industry.

Ms Low was speaking yesterday to coffee shop owners at an event for the Foochow Coffee Restaurant and Bar Merchants Association, where she also announced enhanced help schemes for businesses.

She said the CDC Voucher scheme has been useful for both families and businesses.

More than 86.8 per cent, or 1.06 million households, have so far claimed their 2022 CDC vouchers, which were made available in May.

The vouchers for last year, which were disbursed in December, were claimed by 96.8 per cent, or 1.18 million Singaporean households.

To date, more than 17,700 heartland merchants and hawkers are on board the scheme.

Speaking in both English and Mandarin at the inauguration ceremony of the association's 82nd executive committee at the Foochow Building in Tyrwhitt Road, Ms Low said the food services sector had battled disruptions from the Covid-19 pandemic, but many had overcome the challenges with new modes of operation, including the adoption of technology.

As the global situation remains uncertain, she said the Government will help to cushion near-term energy cost increases and provide more support for local businesses with cash-flow concerns.

The Small Business Recovery Grant providing one-time cash support of up to $10,000 has been disbursed to 40,000 small businesses most affected by the pandemic.

A new Energy Efficiency Grant will provide small and medium-sized enterprises in the food services, food manufacturing and retail sectors up to 70 per cent in co-funding to adopt energy-efficient equipment.

And the Government has enhanced its co-funding share of wage increases for low-wage workers and other vulnerable workers under the Progressive Wage Credit Scheme.

It has also extended the Jobs Growth Incentive for another six months till March 2023 to sustain support for those who employ mature workers, people with disabilities and former offenders.

In his speech, Mr Hong Poh Hin, 74, chairman of the association - which represents more than 400 coffee shops - said the high transaction prices of some coffee shops recently were decided by supply-demand market forces, and the buyers and sellers involved.

A food and beverage giant forked out $40 million in June for a coffee shop in Yishun. It followed two other recent high-price sales, with one in Tampines changing hands for a record $41.68 million, and another there going for $16.8 million.

"The coffee shops involved face tough competition," he said.

"There has been no marked increase in food prices, and the higher costs are not passed on to consumers."

He said coffee shops are still places where Singaporeans can enjoy economical meals.

Ms Low said: "Maintaining transparent and fair prices will protect the good reputation of the association.

"It will also ensure that coffee shops will remain a good place for Singaporeans to dine and mingle."