NEA will closely monitor beverage prices after container return scheme begins in April: Janil
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When the scheme starts on April 1, consumers can drop off used plastic bottles and cans at more than 1,000 reverse vending machines islandwide.
ST PHOTO: NG SOR LUAN
SINGAPORE – Beverage prices will be closely monitored by the National Environment Agency (NEA) after the recycling scheme for plastic bottles and cans starts in April, Senior Minister of State for Sustainability and the Environment Janil Puthucheary told Parliament on Feb 3.
Dr Janil added: “If there is evidence of collusion or profiteering, there are mechanisms for that to be reported and to be dealt with. We will look to see what are the factors that have led to them.”
But he maintained that price competition within the market will keep any cost pass-through to consumers at bay, and this was the observation from dozens of jurisdictions that have similar container return schemes.
“Our consumers are quite discriminatory, and they will adjust their purchasing if there is indeed some attempt to extract excessive profits through this (scheme). Nevertheless, NEA will be watching the beverage prices after we introduce the scheme and through the transition very, very closely,” said Dr Janil.
He was responding to concerns raised by several MPs, who wanted to know how the upcoming Beverage Container Return Scheme will impact the cost of drinks and affect the business of smaller producers and importers.
Under the scheme, customers will pay an additional 10 cents in refundable deposit for bottled and canned drinks ranging from 150ml to 3 litres.
When the scheme starts on April 1
Their 10-cent deposits will be refunded to their ez-link cards when they do so. Other digital payment methods will be revealed soon, but there are no plans to have the vending machines dispense 10-cent coins or cash vouchers, said Dr Janil.
Small drink producers and importers were reported to be struggling with the costs and logistics involved in complying with the scheme, CNA first reported in January.
Some smaller producers said the additional costs and work might force them to push up their drink prices by 25 cents to around 60 cents.
Dr Janil acknowledged that smaller drink producers and importers will face some challenges, and the authorities will be “flexible and supportive to assist these businesses in dealing with the transition”.
Compliance costs that producers face under the scheme include a one-time registration fee of $500 and a 10-cent deposit for each drink container put on the market. Importers also need to pay for deposit marks and barcode stickers that are manually pasted on imported drinks.
Most larger producers here – accounting for about 80 per cent of containers put to the market – are able to change their container designs and directly print the deposit logo and barcodes onto their cans and bottles.
This incurs an overall cost of around 3 cents to 4 cents per container, said Dr Janil.
If smaller producers were to have the stickers pasted abroad before the drinks are imported to Singapore, their total cost per container would be around 6 cents to 7 cents, Dr Janil had previously said. But for smaller quantities done locally, the cost to the producers would be higher, he noted.
On Jan 20, NEA said it would give all producers a one-time grant of up to $2,500
Ms Joan Pereira (Tanjong Pagar GRC) asked if smaller producers could receive further grants.
Dr Janil said the $2,500 is more than sufficient to cover both the product registration cost and the producer fees for the first year, which add up to about $2,000.
The grant was sized to address the needs of the smaller producers.
“We are prepared to exercise flexibility and look at further support, but we also have to recognise that the purpose of this scheme is to shift some of the responsibility to the producer,” he added.
More than 1,000 reverse vending machines will be placed at larger supermarkets, the void decks of HDB blocks and some hawker centres, among other high-footfall locations.
Mr Foo Cexiang (Tanjong Pagar GRC) asked if the authorities will prepare for long queues and waiting times at the return points.
Dr Janil said each machine is expected to be emptied at least once a day, and community ambassadors will be on the ground to help residents, especially seniors, retrieve their 10-cent deposits.
Within a year, the number of return points will double to 2,000.
Singapore’s household recycling rate in 2024 fell to a record low of 11 per cent
With the scheme, the aim is to have 70 per cent to 80 per cent of bottles and cans returned, said Dr Janil.
The scheme has been delayed a few times
In July 2024, it was reported that the scheme would be delayed again to April 2026 at the request of beverage producers, as they needed more time to adjust to the changes.
