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NEA: Open tender process ensures that hawker stalls are allocated in a fair and transparent manner

16 Sep 2023

Reader's letter:

“Hawker centres - Relook bidding system for stalls”, Martin Lee Ming Han, The Straits Times, 12 Sep 2023

NEA's reply:

This is a full version of NEA’s reply issued to the media agency; published in The Straits Times, 18 Sep 2023.


NEA: Open tender process ensures that hawker stalls are allocated in a fair and transparent manner

We refer to Mr Martin Lee Ming Han’s letter (“Hawker centres - Relook bidding system for stalls”, Sep 12).

Vacant stalls in National Environment Agency (NEA)-managed hawker centres are made available via monthly stall tender exercises. The open tender process ensures that stalls are allocated in a fair and transparent manner.

There is no minimum bid price and a stall will be awarded to the highest qualifying bid. Successful bid prices for stalls awarded are also published online as reference to guide tenderers in placing bids. 

Some tenderers have successfully secured stalls for as low as $1. There are also stalls where successful tenderers have tendered high bids to secure choice stalls at their preferred locations. These rentals are kept unchanged for the duration of the initial 3-year tenancy period.

At the end of the 3-year period, rental is adjusted to the market rate as determined by an independent professional valuation. The valuation considers factors such as the footfall of the hawker centre, stall size, and market conditions to assess the market rental. Stallholders who have initially tendered a bid higher than the assessed market rate will see a downward adjustment at the end of three years. Similarly, stalls with initial rentals lower than the assessed market rate will see an upward adjustment at tenancy renewal.

While rental forms part of a hawker’s costs, the main cost drivers are still raw materials and manpower.

 

Andrew Low
Group Director, Hawker Centres Group
National Environment Agency

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