New $2,500 NEA grant to help beverage producers defray cost of container return scheme

SINGAPORE – Beverage producers will receive a one-time grant of up to $2,500 to defray the cost of complying with the

beverage container return scheme

, which kicked in on Jan 20.

In a circular to all beverage producers on the same day, the National Environment Agency (NEA) said: “We recognise that the impact of this scheme varies across producers, depending on how products are processed and brought to market, as well as the total volume of production or imports.

“Some producers are better placed to make the transition while minimising the cost impact. At the same time, we are mindful of the logistical challenges faced by some importers and smaller producers.”

All registered beverage producers will be automatically given the Beverage Container Return Scheme Producer Transition Grant of up to $2,500 per producer, valid until the end of September 2027, through the scheme operator Beverage Container Return Scheme (BCRS) Limited.

The announcement follows an outcry by smaller businesses on the costs of compliance, with some producers reportedly saying they could increase the retail cost of bottled and canned drinks in Singapore by 25 cents to 60 cents.

Replying to The Straits Times about the potential price hike, BCRS said: “Based on the experiences of other countries with similar schemes, any potential cost pass-through to consumers in beverage prices is expected to be moderated by price competition among industry players.”

Noting that it would work with producers to explore more practical and flexible means to meet the scheme requirements, BCRS added: “For the majority of beverages sold locally, producers are able to make the transition while minimising the cost impact nearer to the producer fees which is at less than 5 cents. However, we remain mindful of the logistical hurdles faced by some importers and producers dealing with smaller volumes of beverages.”

So far, more than 400 beverage producers, which command 95 per cent of the regulated local beverage market, have registered under the scheme.

What contributes to the cost of compliance?

According to BCRS, which is a not-for-profit company, beverage producers need to pay a one-time registration fee of $500, with an additional $5 for each product registered.

Beverage producers also need to pay 3.1 cents for each aluminium container and 3.7 cents for each plastic container put on the market to fund the scheme’s collection, processing and administration. These fees have been calculated after factoring in revenue from the sale of materials like plastic and aluminium, and unclaimed deposits by consumers.

BCRS said it already waived the $500 registration fee for smaller producers that had registered before Aug 9, 2025. It added that there is no change to the registration fee at present.

In addition, smaller beverage makers that do not have the ability to influence product designs may need to pay for barcode stickers to allow consumers to scan and get their refunds at the more than 1,000 return points that are scheduled to be fully operational by April 1.

Beverage producers can only obtain stickers from the three local vendors that have been accredited by BCRS. The cost of the stickers ranges from 3 cents to 18 cents depending on quantity and size.

BCRS said that the appointment of the three vendors safeguards the integrity of the scheme by preventing fraud, which can happen when drinks sold overseas are brought to Singapore for the 10 cents refund.

“International experience has shown that shared barcodes can lead to overclaiming of the deposits,” said BCRS, adding that the security fee would be drawn down when fraud occurs.

“The security fee is fully refundable and can also be provided in the form of a banker’s guarantee. It is calibrated based on the volume of containers, serving as a safeguard rather than a penalty, while allowing producers the flexibility to use international barcodes if necessary,” said BCRS.

Beverage producers that opt to retain and use the international barcodes affixed on drinks imported to Singapore will need to pay a security deposit. The security fee for selling 100,000 containers with such barcodes will be $28,000.

Beverage producers need not register for the grant, which will automatically be used to pay for all related fees. For use of the grant for scheme sticker costs, producers can e-mail BCRS Limited at

transition_grant@bcrs.sg

to seek reimbursement. The operator will process the claims and make the first payment by March 2026.