In a significant policy update, hawker stalls in Singapore will be allowed to employ holders of long-term visit passes (LTVP) as stall assistants starting January 1, 2024. This announcement was made by Senior Minister of State for Sustainability and the Environment, Koh Poh Koon, during a parliamentary session on October 14.

Traditionally, the workforce in hawker centres managed by the National Environment Agency (NEA) has been restricted to Singapore citizens and permanent residents. However, with the new policy, the hiring landscape is set to broaden considerably. Currently, stallholders have the option to appoint their spouses who possess LTVP or LTVP-Plus and are approved to work in Singapore, due to their close familial connections with the hawkers.

The move comes as hawkers continue to grapple with manpower challenges, which are major cost drivers for their businesses. The NEA expressed that relaxing hiring policies will expand employment opportunities for stallholders, helping them manage their operational costs more effectively.

In addition to this hiring change, Dr. Koh indicated that the government is exploring further support measures for hawkers, suggesting potential enhancements on the horizon for these small business owners.

Questions regarding hawker stall rents also surfaced during parliamentary discussions. Dr. Koh confirmed that NEA is revisiting its policies for hawker centres to ensure that food remains affordable while maintaining effective management practices.

For context, a notable example of rising stall rental costs emerged earlier this year when a bid of S$10,158 (approximately US$7,770) was submitted for a stall at Marine Parade Central Market and Food Centre, marking it as one of the highest bids in six years. Nonetheless, Dr. Koh reassured that such high tender prices are not typical, stating that around one in five cooked food stalls were successfully bid at or below S$500 last year. The median successful tender price for these stalls was about S$2,000 in 2022 and decreased slightly to S$1,800 in 2023.

Vacant stalls are made available for bidding through monthly tenders run by the NEA, which Dr. Koh described as "transparent and fair." After an initial three-year lease, rental costs are recalibrated to reflect market conditions as assessed by professional appraisers. Since 2012, the NEA has eliminated reserve rents and does not impose a minimum bid price, allowing stallholders to potentially secure leases at below-market rates during their first term.

This policy shift not only opens up new opportunities for the LTVP holders but also aims to sustain the vibrancy of Singapore's beloved hawker culture amid challenging economic conditions. Stay tuned for more updates on support initiatives for hawkers as they develop!