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Forum: Social changes a reason to look at extending HDB lease​


Jul 22, 2024

The 99-year lease on HDB flats continues to be a contentious issue for Singaporeans, especially given how expensive flats have become (Future of HDB flats: A delicate balancing act, says sociologist Chua Beng Huat, July 13; and Don’t allow 99-year HDB lease issue to remain unresolved, July 19).
This is not simply a matter of rising costs.
The Housing Board began its 99-year lease model for its public housing flats in the 1960s. This lease model means that the ownership of the flats will revert to the state after 99 years.
Addressing Parliament, National Development Minister Desmond Lee has said that HDB flats of 99-year leasehold strike a good balance between providing a home for life, asset appreciation, rejuvenating our city and building homes for the new generation.
However, it should be recalled that in the 1960s, the life expectancy of Singaporeans was just 60-plus years. Moreover, Singaporeans married and had children very early then, often in their 20s.
Taken together, the 99-year lease would have allowed the children of the original buyers to live in that HDB home for life if desired. Socially, this makes sense, and provides families with stability and the intimate memories of growing up in that home.
It also helps buyers whose children have a permanent disability or serious illness, giving families the peace of mind that, regardless of finances, the children can spend the rest of their lives in their parents’ home if need be.

Moving forward to the present, the life expectancy of Singaporeans has increased significantly to more than 80 years. Singaporeans are also marrying later and delaying having children, if they have any at all.
These seismic social changes in Singapore ought to be considered in determining anew the length of HDB flat leases. For instance, extending the leases of HDB flats to, say, 150 years may help allay some of these concerns.

Daniel Ng Peng Keat
 

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Forum: Make insurers pay for third-party property damage if their client is clearly at fault​


Sep 25, 2024

The Motor Vehicles (Third-Party Risks and Compensation) Act 1960 (MV Act) does not require insurers to make insurance compulsory for third-party property damage.
For third-party property damage coverage, an insurer’s obligations arise solely from the contractual relationship with its policyholder.
The insurance contract requires its policyholder or insured driver to report an accident to the insurer.
While the rationale is sound in not-so-clear-cut motor accidents, it should not apply in all situations.
In situations where there is ample evidence clearly showing that their insured driver was at fault in an accident and is 100 per cent responsible for it, the insurers should be mandated to proceed with a third-party claim.
Nowadays, in-car cameras can provide clear footage of an accident. This can be used to determine if the insured driver was at fault in the accident and the extent of his responsibility.
Insurers can now choose to push the case away and claim that they will send reminders to their insured driver.

The most drastic actions insurers can take are to repudiate liability, cancel the policy, decline renewal of the policy and confiscate the no-claims discounts (NCDs).
None of these actions will encourage their errant insured driver to make an accident report.
And none of these actions protects the victim. They serve only to protect the insurer.
The victim will have to either claim from his own insurance policy or file a civil suit against the errant driver. The victim has to pay the cost of repairing the damage done by the errant driver, bear the increased premiums with reduced NCDs and also high legal fees.
The MV Act not only punishes the victims but also benefits the errant drivers and insurance companies.
Upon policy cancellation, the errant drivers can just sign up for another policy with another insurance company with no penalties.
Insurance companies benefit from charging higher premiums for those who claimed from their own insurance and at the same time they have no obligations to pay for property damage caused by their former clients.
The MV Act should be reviewed, with an added clause which requires insurers to pay for third-party property damage if there is sufficient evidence to show that their client is 100 per cent at fault.

Vincent Tan Zongxian
 

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Forum: Let supermarket customers use own bags to hold items before payment​


Aug 06, 2024


FairPrice recently implemented a new policy that lets shoppers use their personal shopping bags and trolleys only after they have paid for their groceries at the cashier. The aim of this move appears to be to prevent theft.
Ever since plastic bag charges were imposed at all major supermarkets, many shoppers have been using their own reusable bags and trolleys to hold groceries before they head to the cashier.
For instance, I bulk-buy heavy items such as dairy products and rice, and using a personal trolley was often the most convenient way to hold my purchases before payment.
FairPrice’s new policy means that shoppers will now have to use the supermarket’s green baskets or metal trolleys, while lugging their personal bags or trolleys as they shop.
Many neighbourhood FairPrice outlets have narrow aisles which make handling more than one trolley challenging and unsafe for shoppers.
My mother, who is in her 70s, has to resort to kicking the green basket along the floor because she has no strength to carry the heavy basket once it is filled with groceries. At the same time, she has to pull her own empty shopping trolley along. If she uses the supermarket’s trolley, there isn’t much space to put her personal trolley inside too.
She was advised by a FairPrice staff member to buy its house-brand metal trolley costing around $47. I presume that a metal trolley like this lets staff see clearly that shoppers are not hiding any item during payment, unlike when they use their own bags.

FairPrice should prioritise its customers’ safety and convenience and make it easier for them to shop using their own reusable bags and trolleys while doing their bit for the environment.

Albert Foo
 

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Forum: Look into property tax burden for seniors living in private properties​


Aug 28, 2024

I share Prime Minister Lawrence Wong’s concern that addressing the rising cost of living and improving care for seniors is a critical issue, one that will only become more pressing as our population ages (Govt studying how to tackle cost-of-living concerns, take better care of seniors: PM Wong, Aug 23).
As a community volunteer, I often engage with seniors who express deep concerns about their growing financial burden. What was once a simple lunch at a hawker centre costing $2 has now surged to $6, a stark reminder of how inflation is eroding their financial stability. While initiatives like the CDC vouchers are appreciated, there is a growing sentiment that more substantial action is needed.
This strain is particularly severe for senior home owners of private properties. These homes are not investment properties, but homes that they have built and lived in their entire life. Yet, they now face annual property tax that has risen to thousands of dollars. Without a steady income, this burden is unsustainable and is causing significant hardship for many of our seniors.
I urge the Government to reconsider its property tax policies for senior home owners. It is crucial to ensure that our seniors can enjoy their golden years with dignity, free from the anxiety of financial strain.

Emily Yap Yong An
 

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No cronyism.
Among the dozens and hundreds of candidates. Temasek's subsidiary Vertex Ventures has to choose one that smoked cannabis.
Schooling's Olympic gold medal is better than a 3.8+ GPA, double degrees, prior internship experience, and leadership positions in many CCAs.

Singapore’s Olympic gold medallist Joseph Schooling joins venture capital firm​

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Former national swimmer Joseph Schooling has joined Vertex Ventures South-east Asia and India as an associate. ST PHOTO: KUA CHEE SIONG
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Kimberly Kwek

Oct 01, 2024

SINGAPORE – After closing a chapter on an illustrious swimming career in April, Singapore’s sole Olympic gold medallist Joseph Schooling is starting a new endeavour as an associate with venture capital company Vertex Ventures South-east Asia and India.
The firm announced in a LinkedIn post on Sept 30 that the former champion has joined its investment team.
The post read: “Joseph brings with him a unique perspective to our firm.
“As he embarks on this new journey, he will be working alongside our seasoned investment professionals to gain more experience and insights into assessing and making investments in high-growth start-ups.”
Vertex Ventures South-east Asia and India is one of the seven major funds in Vertex Holdings’ global network – the latter is a wholly owned unit of Singapore’s Temasek Holdings.
The fund’s investments focus on sustainability, fintech and healthtech among other things.
Following the announcement of his retirement earlier this year, the 29-year-old told the media that he would be turning his focus to the venture capital space, his swim school Sports Schooling, charity work and assisting his mother May at her trading company.

Before this latest venture, Schooling enjoyed a successful career in the pool, becoming the first Singaporean swimmer to finish on the podium at the Commonwealth Games and the world championships.
At the 2016 Rio Olympics, he made history by winning the men’s 100m butterfly final, overcoming a field that included American great Michael Phelps.
In addition to his Olympic success in Brazil, Schooling also claimed 29 golds at the SEA Games, seven Asian Games medals, a silver at the Commonwealth Games and two bronzes at the world championships.
His exploits earned him the Sportsman of the Year gong a record six times.
Schooling’s agent and manager Ronda Ng said: “Joseph is currently on an attachment with Vertex as he pivots into the VC (venture capital) world. This is an area that Joseph has been actively working in since his retirement from professional swimming in April.”
 

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MRT, bus fares to go up by 10 cents for adults who pay by card from Dec 28​

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The Public Transport Council said the Government will provide an extra $250 million in subsidies to cover this deferred increase. ST PHOTO: KUA CHEE SIONG
Kenneth Cheng and Lee Nian Tjoe

Sep 12, 2024

SINGAPORE – Each train and bus ride will cost adults who pay by card 10 cents more from Dec 28, as public transport fares climb by 6 per cent.
Concessionary fares for seniors, students, people with disabilities and low-wage workers who pay by card will rise by four cents per journey, the Public Transport Council (PTC) said on Sept 9 after its yearly review of train and bus fares. About two million commuters are in this group.
The fare changes mean that an adult passenger taking the MRT from Tampines to Raffles Place will pay $2.02 from Dec 28, up from $1.92 now.
In 2023, fares went up by 7 per cent, or up to 11 cents, for adults who pay by card. The 11-cent hike is the highest on record.
Fares rose by 2.9 per cent in 2022 and 2.2 per cent in 2021. In 2020, there was a freeze on fares to help the public cope with the impact of the Covid-19 pandemic.
PTC, which regulates fares and ticket payment services, said the 6 per cent rise is less than a third of the allowable increase of 18.9 per cent for 2024.

This comprises a 3.3 per cent adjustment for 2024 and a 15.6 per cent hike deferred from the 2023 exercise.

The 2024 adjustment was driven by growth in core inflation and wages in 2023, but was moderated partially by an 18.6 per cent drop in energy prices from their peak in 2022, said the council.
PTC said it understands that the cost of living remains a concern for Singaporeans, and it decided to grant the 6 per cent hike to “cushion commuters from the full fare increase”.
The remaining increase of 12.9 per cent will be rolled over to future fare review exercises.

The council was asked at a press conference on Sept 9 why it did not allow more of the deferred hike from the previous exercise to be cleared in this round.
The council’s chairwoman Janet Ang said the increase for 2024 was deemed to be manageable for passengers, adding: “PTC’s mission must be to balance affordability, and reduce the gap between fares and costs.”
The council said the Government will provide an extra $250 million in subsidies to cover this deferred increase.
This is in addition to the more than $2 billion in subsidies it pumps in yearly to keep public transport services running, and extra funding of up to $900 million that will be spent over the next eight years to improve the bus network under the new Bus Connectivity Enhancement Programme.
“The additional government subsidy will help to moderate the fare increase while still accounting for the higher costs of providing public transport,” said PTC.
There will be no change to fares paid in cash on buses. Less than 1 per cent of public transport rides are paid for in cash.
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The cost of adult monthly travel passes and monthly concession passes will remain unchanged too, to help heavy public transport users cap their expenses, PTC added.
The council said operators SBS Transit Rail and SMRT Trains had applied for the full 18.9 per cent hike in 2024, citing reasons such as cost pressures arising from inflation and higher labour costs to keep salaries competitive.
In line with the 2024 fare increase, PTC said it would require SBS Transit Rail to contribute 15 per cent of its expected revenue increase, or $3.05 million, to the Public Transport Fund, which helps households cope with fare increases.
SMRT Trains will contribute 25 per cent of the same, or $9.96 million.
To help defray the fare increases, the Ministry of Transport and the People’s Association said the Government will provide public transport vouchers worth $60 each to resident households with a monthly income of up to $1,800 per person. Each household will get one voucher.
This is higher than the vouchers worth $50 each given out in the previous round to households with a monthly income of up to $1,600 per person.
The higher income eligibility criterion for the vouchers will benefit an extra 60,000 households. The vouchers can be used to top up fare cards or buy monthly passes, and will be given out in two stages.
Households that received a voucher in the 2023 exercise and continue to qualify will receive a voucher automatically. They will be notified by the end of December.
Households that qualify but do not receive a voucher in the first stage can apply for one online or at community clubs from early 2025. More information on the application process will be made public later.
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PTC said households in the 21st to 40th percentile – the average public transport user – spent an average of 1.7 per cent of their monthly income on public transport in 2023, compared with 1.8 per cent in 2021.
Lower-income households in the 11th to 20th percentile, meanwhile, spent about 2.4 per cent of their income on public transport in 2023, down from 2.5 per cent in 2021.
After taking the latest fare and wage increases into account, the share of public transport expenses as a proportion of monthly income for these households will remain similar to that of 2023, said the council.
Public transport users said they expected fares to go up, as has been the case in recent years.
Business consultant Albert Kwan, 39, said this is somewhat justified, given that there are more MRT lines being introduced, and overall public transport connectivity has improved.
Partnerships director Alka Solanki, 52, said the fare increase means an extra 80 cents a day for her family of four, but “it is not going to break my bank”.
“It is acceptable given that there are improvements in MRT connectivity,” she added.
Retired real estate consultant James Tan, 66, said service levels should improve in tandem with fare increases.
Customer success executive Zoey Tan, 35, who now qualifies for a concessionary card for low-wage workers, said fares will become pricier when she changes her job and no longer qualifies for lower fares.
Transport economist Walter Theseira said the cost of operating public transport services has been rising faster than the fare increases that PTC has allowed.
“I expect PTC is also hoping that moderate inflation will give a bit of breathing room in the next few years to spread out the deferred increase,” said Associate Professor Theseira.
 

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PAP and WP MPs clash over ruling party’s close ties with NTUC​

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Mr Gerald Giam noted that many PAP MPs and branch chairpersons serve as advisers to NTUC-affiliated unions. ST PHOTO: AZMI ATHNI
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Goh Yan Han
Political Correspondent

Sep 10, 2024

SINGAPORE – Whether the close relationship between the People’s Action Party (PAP) and the National Trades Union Congress (NTUC) is good for workers here was the subject of a 30-minute exchange in Parliament on Sept 9 when the House discussed a Bill to strengthen protections for platform workers.
PAP MPs argued that this alliance has ensured that the views and needs of workers have been conveyed to the political leadership and prioritised, and that this is reflected in the ruling party’s track record since it has been in government.
The issue was raised by Mr Gerald Giam (Aljunied GRC) during the debate on the Platform Workers Bill.
While acknowledging the union leaders’ hard work, the Workers’ Party (WP) MP questioned if they could fully advocate workers’ interests if they were also PAP members.
He noted that many PAP MPs and branch chairpersons serve as advisers to NTUC-affiliated unions.
Should workers’ interests conflict with government policies or party agenda, these leaders may feel pressured to support such policies even if they feel that doing so compromises workers’ needs, said Mr Giam.
“Furthermore, an overly close relationship between the PAP and unions risks creating groupthink, where union leaders are less inclined to challenge prevailing policies or explore alternative solutions,” he added.

He also suggested that if the PAP were to lose power, unions aligned with the PAP might struggle to work with the new government, or lose the support of workers who voted for the new administration, potentially weakening their effectiveness.
Midway through his speech, Mr Christopher de Souza (Holland-Bukit Timah GRC) raised a point of order that Mr Giam had not referenced any provision in the Bill, and what he said was instead “predominantly an attack against the NTUC”.
“We cannot, Mr Speaker, be using Parliament and legislation to craft political speeches that go well beyond the ambit and the scope of the legislation that we are debating,” said Mr de Souza, addressing Speaker of Parliament Seah Kian Peng.

Mr Giam replied that the first part of his speech was a preamble relevant to the points he wanted to make. Among them was that the WP supports tripartite dialogue between employers, unions and the government of the day, but not an explicit alignment between the unions and any political party.
In this regard, NTUC-affiliated Platform Work Associations – which would be given legal mandate under the new Bill – could restrict workers’ choices in joining or forming an association that best represents their interests. He proposed that they be able to form alternative associations not affiliated with NTUC, so as to have representation that is “not beholden to any political party or the government”.
After Mr Giam concluded his speech, Mr Seah pointed him to Section 50 of the Standing Orders of Parliament, which, among other things, instructs MPs to keep their speeches relevant to the subject being discussed.
Leader of the Opposition Pritam Singh then joined the debate, where he questioned the relevance of Mr de Souza’s 2022 Budget speech, which was focused not on government spending but instead urged the PAP to make a decision on the 4G (fourth-generation) leadership.
“It cannot be just accusations made at the opposition, but I think some PAP members ought to reflect on themselves,” said the WP chief.
Mr de Souza replied that at a Budget debate, members have free rein to discuss what they want in addition to the Budget, such as the objectives, values and future they want to see for Singapore.
“I was concerned for the country that we needed leadership. I stood here and gave one of the most difficult speeches of my political career, which is that... without key leadership, budgets are nothing,” he said.

On the other hand, Mr Giam’s speech attacking NTUC, during a debate on a Bill to advance platform workers’ welfare, was political opportunism, Mr de Souza said.
Senior Minister of State for Defence Heng Chee How, who has been with the labour movement for close to 30 years, weighed in, saying that the PAP’s decades-long track record shows that the close partnership has served workers well.
He noted that alliances between political parties and trade unions are not uncommon in many countries, including Britain, the United States and Canada, which Leader of the House Indranee Rajah had earlier cited.
“They don’t do this out of stupidity,” said Mr Heng. “They do this because it serves the interest of the constituents that they represent concurrently.”
He asked that Mr Giam “deal with the facts”, and give due respect to union leaders here. “They are not stooges. Their hearts are in the right place. They do all this for their fellow workers,” he said.
Mr Heng then questioned if Mr Giam’s proposals would make it more or less likely for tripartite partners to come to a sensible agreement that can be implemented for the good of workers.
“Be fair to our unions. Be fair to the NTUC. NTUC is not expecting the Workers’ Party to support us, but at least be fair,” he said.
Senior Minister of State for Manpower Koh Poh Koon also waded into the discussion. He recalled that when the left wing of the PAP split off to form the Barisan Sosialis, the Singapore Trades Union Congress also split into two rival bodies – NTUC and the Singapore Association of Trade Unions (Satu).
“Satu aligned with the Barisan Sosialis, and the Barisan Sosialis in 1988 folded into the Workers’ Party,” said Dr Koh.
“So I think maybe the Workers’ Party should think about changing its name, because if you feel so averse about being associated with workers, you might want to think about something else.”
Mr Giam then asked the PAP MPs if, based on their statements, one can assume that NTUC would become “an instrument of opposition against the new government”, if the PAP were to ever lose power.
In response, Ms Indranee said that she could not speak on behalf of NTUC, though it would be entirely up to the workers and NTUC to decide whether to support any political party.
This is as trade unions elect their own leaders, and will act in ways that they think is best for their unions and their workers, she said.
“What I can say is that the PAP would do its very utmost not to have to give them a reason to think that we would never support them, or that, as a government, we would not do our very best for the workers and the NTUC,” she said.

Ms Indranee also pointed out that with a general election around the corner, to be called by 2025, “the political rhetoric ramps up”.
“Political parties can slug it out amongst themselves, but don’t put the platform workers in the middle of this,” she said.
She added: “At the end of the day, it comes back to this: We have a Bill to pass, and let’s pass this Bill so that we can confer rights and protections on our platform workers.”
A total of eight MPs spoke during the exchange, including WP MP Jamus Lim (Sengkang GRC) and Mr Alex Yam (Marsiling-Yew Tee GRC).
 

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Founders’ Memorial’s construction set to cost $335 million​

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Slated to open in end-2028, the Founders' Memorial will be dedicated to independent Singapore’s pioneers and the values they exemplified. PHOTO: COURTESY OF GARDENS BY THE BAY AND NATIONAL HERITAGE BOARD
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Ng Keng Gene
Correspondent

Sep 09, 2024

SINGAPORE – The upcoming Founders’ Memorial at Gardens by the Bay’s Bay East Garden is set to cost $335 million to construct.
Responding to a question from Mr Louis Chua (Sengkang GRC), Minister for Culture, Community and Youth Edwin Tong told Parliament on Sept 9 that the development cost is based on current outlook and projections.
The sum “encompasses building construction and fit-out costs for the exhibition galleries, viewing gallery and outdoor amphitheatre, education and family spaces and amenities, and a 5ha outdoor public garden”, said Mr Tong in a written response. He added that the annual operating cost of the memorial “is being worked out in tandem with the development of operational plans”.
Slated to open in end-2028, the memorial – which was mooted in 2015 following founding prime minister Lee Kuan Yew’s death – will be dedicated to independent Singapore’s pioneers and the values they exemplified. It broke ground on June 5.
Mr Tong said the memorial “will be an integrated gallery and gardens experience”, adding that it will be a space “to capture the spirit of our nation and unify Singaporeans”, by enabling them to reflect on the past and be inspired for the future.
Its twin two-storey buildings, which will be connected by a common basement, were designed by Japanese architecture firm Kengo Kuma & Associates, working in collaboration with Singapore firm K2LD Architects.
The opening of the memorial was originally planned for 2025 – in time for Singapore’s 60th birthday – but its completion date was pushed back owing to extensive infrastructural work that was taking place at its Bay East Garden site. Its adjusted 2027 completion date was then revised due to the Covid-19 pandemic.

The Founders’ Memorial MRT station on the Thomson-East Coast Line will open in tandem with the memorial in 2028.
 

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Koh Poh Koon says high bids ‘not the norm’, after $10,158 bid for Marine Parade Central hawker stall​

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A bid of over $10,000 was put up for this vacant stall at Marine Parade Central Market and Food Centre in a July 2024 tender. ST PHOTO: WONG YANG
Wong Yang

Sep 11, 2024

SINGAPORE – While a few stalls at popular locations have attracted high bids, with five at the Marine Parade Central hawker centre crossing $8,000, such tender prices are not the norm, said Senior Minister of State for Sustainability and the Environment Koh Poh Koon.
He was responding on Sept 9 to Mr Yip Hon Weng (Yio Chu Kang), who asked if a recent bid of over $10,000 for a stall at Marine Parade Central Market and Food Centre indicated a trend of escalating hawker stall rentals, and how this would impact food affordability for Singaporeans.
A recent bid of $10,158 for a vacant unit at Marine Parade Central Market and Food Centre had raised eyebrows among netizens in August, with some expressing concern about the impact of high stall rentals on the cost of hawker food.
Dr Koh told Parliament the median successful tender price for cooked food stalls across hawker centres was about $1,800 in 2023. About a fifth of such stalls were awarded at tender prices at or below $500 in 2023.
The median monthly rent of non-subsidised cooked food stalls across hawker centres is about $1,250, and has remained at this level since 2015, he added.
According to a tender notice in July, the bid of $10,158 was the second-highest bid for the stall at the Marine Parade Central hawker centre, after a $10,680 bid that was withdrawn. The next three highest bids ranged between $8,113 and $9,500.
Dr Koh said the recent tender for the stall was “quite competitive”, attracting more than 40 bids.

He noted that the hawker centre is very popular, as it is open for the three meals throughout the day and has good footfall. Marine Parade MRT station, which opened on June 23, has an exit that leads to the hawker centre.
A survey by the National Environment Agency (NEA) found that stall rental makes up less than 10 per cent of stallholders’ operating costs, compared with raw materials, at 56 per cent, and manpower, at 20 per cent, Dr Koh said.
Replying to Mr Yip’s question on support for small business owners and new hawkers to help them with rising stall rentals, Dr Koh said only about 4 per cent of cooked food stalls in hawker centres today are paying rent above the assessed market rent. The remaining 6,000 stallholders pay rent no higher than this value.

NEA – which runs 121 hawker centres in Singapore – has put in place measures to ensure rental prices of hawker stalls are fair and not speculative, he added.
These include disallowing subletting or assigning of hawker stalls to prevent stallholders from engaging in rent-seeking behaviour, and removing the reserve rent in the tender of vacant stalls to allow rental rates to fully reflect market conditions.
Since September 2019, operators of new hawker centres have been required to stagger rentals for the first two years of operations such that stallholders pay 80 per cent of the stall’s rental in the first year, and 90 per cent in the second year.
Dr Koh said this is to help stallholders manage their operating costs as they gradually establish a clientele in the new hawker centre.
Tendered rents are also adjusted to the market rate determined through independent professional valuation after the stallholders’ first tenancy period of three years, he noted.

Dr Koh added: “For those who have, for example, paid a very high price – $10,000, $8,000 – in their first tenancy term, this price will hold. But following their first tenancy term, that price will be adjusted to the assessed market rent, which, as I said, is about $1,200 thereabouts, so that will help to make the price more sustainable for this hawker in the longer term over the next tenancy term.”
At Marine Parade Central Market and Food Centre, a hawker who wanted to be known only as Mr Yang, 53, said his wife Yang Ailan had submitted the $10,158 bid for the vacant stall as their son, who is in his late 20s, wants to start his own cooked food business.
Mr Yang, who helps his wife run a drink stall just four units away from the vacant unit, told ST in Mandarin: “Our son works in the car industry, but he’s not sure how stable it is since the economy isn’t doing so well. So he wants to open his own stall.”
He added: “We thought this would be a good place because we’ve had a drinks stall at this hawker centre for over 10 years, it’s clean, and we are very familiar with the area.”
A 20 per cent to 30 per cent improvement in their drink stall’s business since Marine Parade MRT station opened gave his wife the push to make the bid, said Mr Yang, who added that the tender for the stall has not been awarded.
Other hawkers at the food centre were less sanguine about the prospect of opening a stall with a monthly rental of over $10,000.
Mr Remus Seow, 28, who operates a Japanese fusion food stall, said a 20 per cent increase in sales after the station’s opening lasted only a month, and business has been only marginally better since then.
He told ST: “It’s not fair for them to bid this high because people might fight to meet the price and this could push up future bids. If that happens, who is going to take over the old generation of hawkers, and keep affordable food available for Singaporeans?”
In August 2018, the issue of high tender bids for hawker stalls was also in the spotlight after a woman made a successful $10,028 bid for a stall to sell drinks at Chomp Chomp Food Centre, only to end the tenancy agreement the same day she signed it.
NEA had called the bid – the highest successful bid received up till then – an “outlier”.
Citing two studies that showed stall rentals comprised only 12 per cent of hawkers’ overall costs, and hawkers generally priced food according to what the market can bear, then Senior Minister of State for the Environment and Water Resources Amy Khor told Parliament at the time that stall rentals do not directly affect food prices.
 

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COE prices up for most categories; Open category reaches $113,104, highest since Dec 2023​

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COE premiums rose for most categories at the latest tender exercise on Sept 18. ST PHOTO: DESMOND WEE
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Lee Nian Tjoe
Senior Transport Correspondent

Sep 18, 2024

SINGAPORE - Certificate of entitlement (COE) premiums climbed across most categories on Sept 18, with the Open category recording the biggest rise to hit $113,104.
This is the highest since December 2023, when the price of an Open category (Category E) certificate was $118,388.
At $98,524, the price of a Category A COE, meant for smaller and less powerful cars and electric vehicles (EVs), was 2.1 per cent higher than the $96,490 recorded at the previous exercise on Sept 4.
It is the highest Category A price so far in 2024.
For Category B COEs, used to register larger and more powerful cars and EVs, the premium was $110,001, up 3.5 per cent from $106,300 previously.
The Open category COE premium of $113,104 was 5.8 per cent higher than the $106,901 from the previous round. Such certificates can be used to register any vehicle type other than motorcycles, but are almost always used for bigger, more powerful cars.
The commercial vehicle (Category C) COE premium stayed flat at $74,000, just $1 below the price set two weeks ago.

The premium for a motorcycle (Category D) COE rose by 1 per cent to end at $9,900, up from $9,801.
COEs give people the right to own and use a vehicle in Singapore.
The next COE tender exercise will close on Oct 9 – three weeks after the Sept 18 exercise, which is longer than the typical two-week interval.

Some motor dealers were surprised by the latest tender results.
Mr Jason Lim, managing director of BMW Eurokars Auto, said that traders were expecting COE premiums in both car categories to fall by “$2,000 to $3,000”, as business has been slow after premiums went up across the board at the last exercise held two weeks ago.
Instead, COE premiums rose by $2,034 in Category A and $3,701 in Category B.
A sales manager from a mass-market car brand, who asked not to be named as he was not authorised to speak to the media, said the market talk was that aggressive sales promotions from some major brands have not been able to significantly drive up orders over the past two weeks.
Even so, there was a sizeable number of bids in the previous round held on Sept 4 that were not successful – 342 bids in Category A and 267 in Category B, for cars that would have been sold earlier.
These bidders would have been in the mix at the latest tender exercise if the dealers wanted to be able to register the cars.
At the end of the latest tender exercise, there were 468 unsuccessful bids for COEs in Category A and 223 in Category B. Motor dealers said these unsuccessful bidders will likely return to bid in upcoming tender exercises, putting upward pressure on premiums.


Mr Nicholas Wong, chief executive of Honda agent Kah Motor, attributed the latest tender results to the “kiasu mentality” – “kiasu” being Hokkien for “fear of losing out” – as dealers rush to secure COEs in this round.
This is because they expect premiums to go up in October due to the three-week gap, which gives dealers more time to collect sales orders, and the upcoming Car Expo event, which will stimulate buyer interest.
The Car Expo will take place on Oct 5 and 6. It is a large-scale car sales event organised by SPH Media, which publishes The Straits Times.
 
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