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Controlling rent of coffee shop stalls might deter owners from improving: Desmond Lee. YOU BELIEVE HIM?

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Controlling rent of coffee shop stalls might deter owners from improving: Desmond Lee
uk.finance.yahoo.com

Diners sitting at round tables eating and drinking in a coffeeshop at Ang Mo Kio St 22. (PHOTO: Chia Han Keong/Yahoo News Singapore)
SINGAPORE — Controlling the rent of coffee shop stalls might reduce incentive for coffee shop owners to invest in the improvement of their facilities and services, according to Minister for National Development Desmond Lee.

Lee was responding in written form to a question by Nee Soon Group Representation Constituency Member of Parliament Carrie Tan during Monday’s (4 July) parliament sitting. Tan has asked whether there were any plans to control rents on coffee shop stalls in Housing & Development Board (HDB) estates, so that high rental costs would not be transferred to customers.

Tan’s query comes on the back of Yishun coffee shop KPT Kopitiam being sold for a whopping S$40 million last month, the second sale of its kind in a week. Another coffee shop in Tampines, 21 Street Eating House, exchanged hands for a record S$41.69 million earlier in June, topping a record transaction involving Yong Xing Coffee Shop at Bukit Batok for S$31 million in 2015.

Tenants of the 21 Street Eating House told The Straits Times that rent had increased, spurring some to consider terminating their agreements.

Ensure choices and competition​

A key measure to ensure affordable meals and cushion the potential impact of resale transactions was to have a good supply of coffee shops in every HDB estate and town to ensure healthy competition, said Lee. These coffee shops can be run by social enterprises in order to keep food prices low.

“The market for F&B is highly competitive, especially in our heartlands. For example, the two coffee shops at Tampines and Yishun are within neighbourhood centres that have five and seven coffee shops respectively within a 400m radius, and residents hence have a choice of affordable food options there,” Lee said.
There are over 770 HDB coffee shops, and over 100 hawker centres in Singapore. In the past four years, HDB completed 34 new coffee shops, with another 30 expected to be done in the next four years. Four new hawker centres will be operational this year, with another seven in the planning or construction phase.

HDB stopped selling coffee shops in 1998 and has only rented them out since. Lee did not specify how many coffee shops were sold and privately-owned, and how many were rented out.

Provision of budget meals​

In 2018, the HDB introduced Price-Quality tenders, with 50 per cent of points assigned to the quality of the operator. The quality takes into consideration the availability of budget meals, good track record and community initiatives.

Operators who successfully tender for HDB coffee shops typically provide budget food options at every stall, with these priced at around $3.

The rentals under Price-Quality tenders are also lower and more sustainable than under pure price bidding tenders, Lee added.

In considering rent control measures, Lee cited the need to “guard against unintended impacts”.

“For example, by controlling rent, we could end up reducing the incentive for coffee shop owners to invest in improving their coffee shops to provide better services and facilities to customers,” he said.

“HDB regularly monitors the resale market for HDB coffee shops, as well as the prices of food sold in both sold and rental coffee shops, and will not hesitate to review its policies to address affordability concerns where necessary.”
 
With a properly regulated environment and free and fair markets...this would not be an issue with coffeeshops rents. But pap has gone into rent seeking mode .. so prices goes up benefits them ..n very few benefit. Why can't the old model of hawker centres be used? But pap has been privatising the hawker centres and the workers n the ppl suffer
 
Is he giving us a lecture on Adam Smith's theorem of the "invisible hand"?
 
PAP cronies form the cartel of major kopitiam franchises.

These 'kopitiams' are nothing more than non-aircon food courts. If you want to see a real kopitiam, you might need to go to JB. :cool:
 
for a long time, i have a hard time deciding what race is that desmond tan is...he has shit skin like an indian, look of a mutt, name of a chink.
i am so obsessed with this that i hardly give a fuck to what he says.
 
for a long time, i have a hard time deciding what race is that desmond tan is...he has shit skin like an indian, look of a mutt, name of a chink.
i am so obsessed with this that i hardly give a fuck to what he says.
He is Desmond Lèe.
 
for a long time, i have a hard time deciding what race is that desmond tan is...he has shit skin like an indian, look of a mutt, name of a chink.
i am so obsessed with this that i hardly give a fuck to what he says.

Desmond Lee Chup Cheng. That's his full name.
 
Controlling rent of coffee shop stalls might deter owners from improving: Desmond Lee
uk.finance.yahoo.com

Diners sitting at round tables eating and drinking in a coffeeshop at Ang Mo Kio St 22. (PHOTO: Chia Han Keong/Yahoo News Singapore)
SINGAPORE — Controlling the rent of coffee shop stalls might reduce incentive for coffee shop owners to invest in the improvement of their facilities and services, according to Minister for National Development Desmond Lee.

Lee was responding in written form to a question by Nee Soon Group Representation Constituency Member of Parliament Carrie Tan during Monday’s (4 July) parliament sitting. Tan has asked whether there were any plans to control rents on coffee shop stalls in Housing & Development Board (HDB) estates, so that high rental costs would not be transferred to customers.

Tan’s query comes on the back of Yishun coffee shop KPT Kopitiam being sold for a whopping S$40 million last month, the second sale of its kind in a week. Another coffee shop in Tampines, 21 Street Eating House, exchanged hands for a record S$41.69 million earlier in June, topping a record transaction involving Yong Xing Coffee Shop at Bukit Batok for S$31 million in 2015.

Tenants of the 21 Street Eating House told The Straits Times that rent had increased, spurring some to consider terminating their agreements.

Ensure choices and competition​

A key measure to ensure affordable meals and cushion the potential impact of resale transactions was to have a good supply of coffee shops in every HDB estate and town to ensure healthy competition, said Lee. These coffee shops can be run by social enterprises in order to keep food prices low.

“The market for F&B is highly competitive, especially in our heartlands. For example, the two coffee shops at Tampines and Yishun are within neighbourhood centres that have five and seven coffee shops respectively within a 400m radius, and residents hence have a choice of affordable food options there,” Lee said.
There are over 770 HDB coffee shops, and over 100 hawker centres in Singapore. In the past four years, HDB completed 34 new coffee shops, with another 30 expected to be done in the next four years. Four new hawker centres will be operational this year, with another seven in the planning or construction phase.

HDB stopped selling coffee shops in 1998 and has only rented them out since. Lee did not specify how many coffee shops were sold and privately-owned, and how many were rented out.

Provision of budget meals​

In 2018, the HDB introduced Price-Quality tenders, with 50 per cent of points assigned to the quality of the operator. The quality takes into consideration the availability of budget meals, good track record and community initiatives.

Operators who successfully tender for HDB coffee shops typically provide budget food options at every stall, with these priced at around $3.

The rentals under Price-Quality tenders are also lower and more sustainable than under pure price bidding tenders, Lee added.

In considering rent control measures, Lee cited the need to “guard against unintended impacts”.

“For example, by controlling rent, we could end up reducing the incentive for coffee shop owners to invest in improving their coffee shops to provide better services and facilities to customers,” he said.

“HDB regularly monitors the resale market for HDB coffee shops, as well as the prices of food sold in both sold and rental coffee shops, and will not hesitate to review its policies to address affordability concerns where necessary.”

If rents cannot increase, why would kopitiam owners put in effort to renovate their coffeeshops?
 
it’s like saying stall owners will have to becum world crass michelin starred chefs selling high end gourmet meals at high prices to a willing crowd to offset sexhorbitant rental cost. lame.
 
If rents cannot increase, why would kopitiam owners put in effort to renovate their coffeeshops?
You go coffeshop to eat or admire their renovations? For goodness sake, it's just a place to fill your tummy. Eat, have a simple kopi and fuck off. If you want to admire renovations and feel atas, go high class restaurant eat and pay high prices.

Cut off all these unnecessary rubbish. A clean environment, simple, hygenic and good food and a clean toilet is all that peasants need.
 
looking at his uglyness, he is definitely cheebye loong's long lost son, same surname some more
 
Controlling rent of coffee shop stalls might deter owners from improving: Desmond Lee

WTF....$m ministers just speculating on peoples' livelihood ????? His statement based on his years of retail & hospitality experience and empirical evidence ?
 
With a properly regulated environment and free and fair markets...this would not be an issue with coffeeshops rents. But pap has gone into rent seeking mode .. so prices goes up benefits them ..n very few benefit. Why can't the old model of hawker centres be used? But pap has been privatising the hawker centres and the workers n the ppl suffer
It has already a big mistake from the very beginning.
But instead of admitting the mistake and take corrective action, they 一 错再错,将错就错。As a result, we residents and citizens suffer, paying higher food price to these greedy businessmen.
The next big issue will be the hawker centres run by so called Social Enterprise, we citizens will be screwed again.
 
With a properly regulated environment and free and fair markets...this would not be an issue with coffeeshops rents. But pap has gone into rent seeking mode .. so prices goes up benefits them ..n very few benefit. Why can't the old model of hawker centres be used? But pap has been privatising the hawker centres and the workers n the ppl suffer
They young 4G just do not know or no idea how to run the country
 
It has already a big mistake from the very beginning.
But instead of admitting the mistake and take corrective action, they 一 错再错,将错就错。As a result, we residents and citizens suffer, paying higher food price to these greedy businessmen.
The next big issue will be the hawker centres run by so called Social Enterprise, we citizens will be screwed again.
Who voted for it?
 
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