Latest from Kf Seetoh| The socially conscious Timbre Group that manages Yishun Park Hawker Cte ... ...

[yesman2978]

From what I can find from NEA website and news article, it is likely correct.

NEA post open tender to manage a hawker centre. I open a XYZ company and I bid $1mil to manage the hawker centre for 1 year. I win the tender, NEA pays me $1mil.

What is not clear is the hawker stall rent. Do they go into NEA pocket or XYZ pocket.

Salah alr.

If bid 1m, means operator pay NEA 1m

Stall rent goes to operator. After subtracting the 1m for NEA, profit is kept by the operator

 

[tuxguy]

This ongoing thing just shows so many worms in the can that adds on to COL eating at hawker centres. Think many will not mind if hawkers are rich, quantity of food is filling, quality of food is good and cost of food is low.

 

[Rodimusprime6113]

Source: AI

The $1,800 figure refers to the median successful tender bid for new cooked food stalls in 2023, which is the amount paid for the first three years of tenancy before it is adjusted downward to the assessed market rent (typically closer to $1,200–$1,250).

However, the median ongoing monthly rent across hawker stalls in NEA-managed centres (including both subsidised and non-subsidised) is approximately $1,250 as of 2024, and this has remained stable for about a decade. (Note that subsidised stalls, held by pioneer hawkers and comprising about 18% of total stalls, pay around $200 monthly, while the 82% non-subsidised stalls have a similar median of $1,250. Some sources include additional landlord costs like cleaning and conservancy fees, pushing total median expenses to $2,900–$3,300, but the base rent itself is the $1,250 figure.)

Using the median ongoing rent, this represents a rise from around S$160 in the 1980s (when stalls were heavily subsidised) to S$1,250 today, equivalent to a compounded annual growth rate (CAGR) of approximately 5.27% over a 40-year period (assuming mid-1980s to 2025).
To arrive at this solution, use the CAGR formula:

• Initial value = S$160 (1980s subsidised rent)
• Final value = S$1,250 (current median rent)
• Number of years = 40
Thus, CAGR increase in rent is 5.27% pa.

For completeness, if using the $1,800 median tender bid as the final value instead, the CAGR would be approximately 6.24% over the same period.

 

[airman88]

LOL this whole SEHC started with Amy Koh since 2018 . At that time, many MPs alredy raised questions regarding the viability of this hawker centre model and it's impact on livelihoods of the hawkers. Fast forward 7 yrs later and it seems like nothing much has improved...NEA better wake up !

https://www.straitstimes.com/politi...-socially-conscious-enterprise-hawker-centres

NEA is becoming a JLB organisation! Just throwing away their responsibility of running the hawker centres to private enterprises and shaking their legs!

 

[fandango]

Salah alr.

If bid 1m, means operator pay NEA 1m

Stall rent goes to operator. After subtracting the 1m for NEA, profit is kept by the operator

Huh? Operator pay NEA? What is this reverse tendering process?

 

[dennismados]

If hawker are forced to pay higher, then food items will increase of price and might be indirectly causes the wet market items to increase of price and cause those cooking at home to increase of prices.

If importer of food items can sell higher price to hawker then they oso can increase price to any supermarkets saying higher demand.

Say to see some govt agency start to sleeping on the job.

 

[wingwizard]

Hawker must apply leaves? If so, paid leaves?

 

[V_for_Vanilla]

The article still didn't explain what is social enterprise hawker centre, other than having a social mission. Like that might as well call all landlords social enterprise as they too have a mission.

Indeed I am a social entrepreneur as a provider of housing accomodation to fulfill a social need and mission.

 

[airman88]

Salah alr.

If bid 1m, means operator pay NEA 1m

Stall rent goes to operator. After subtracting the 1m for NEA, profit is kept by the operator

Look at KF Seetoh's earlier post on FB, SMS KPK clarified that the stupid gov paid management fee to the tune of 4.86 million a year to the operator of Jurong West Hawker Centre and they have been paying them for 9 freaking years!

 

[Rodimusprime6113]

Source: AI

The $1,800 figure refers to the median successful tender bid for new cooked food stalls in 2023, which is the amount paid for the first three years of tenancy before it is adjusted downward to the assessed market rent (typically closer to $1,200–$1,250).

However, the median ongoing monthly rent across hawker stalls in NEA-managed centres (including both subsidised and non-subsidised) is approximately $1,250 as of 2024, and this has remained stable for about a decade. (Note that subsidised stalls, held by pioneer hawkers and comprising about 18% of total stalls, pay around $200 monthly, while the 82% non-subsidised stalls have a similar median of $1,250. Some sources include additional landlord costs like cleaning and conservancy fees, pushing total median expenses to $2,900–$3,300, but the base rent itself is the $1,250 figure.)

Using the median ongoing rent, this represents a rise from around S$160 in the 1980s (when stalls were heavily subsidised) to S$1,250 today, equivalent to a compounded annual growth rate (CAGR) of approximately 5.27% over a 40-year period (assuming mid-1980s to 2025).
To arrive at this solution, use the CAGR formula:

• Initial value = S$160 (1980s subsidised rent)
• Final value = S$1,250 (current median rent)
• Number of years = 40
Thus, CAGR increase in rent is 5.27% pa.

For completeness, if using the $1,800 median tender bid as the final value instead, the CAGR would be approximately 6.24% over the same period.

Source: AI

The 5.27% compounded annual growth rate (CAGR) for median hawker stall rents over the approximately 40-year period (mid-1980s to 2025) substantially outpaces Singapore’s inflation rate, which stands at about 1.73% over the same timeframe.  This means rents have risen at roughly three times the rate of inflation, resulting in a real (inflation-adjusted) annual increase of approximately 3.5% for rents.

 

[hardindex]

NEA is becoming a JLB organisation! Just throwing away their responsibility of running the hawker centres to private enterprises and shaking their legs!

2 terms under grace fu, keep wasting money hiking cost....

 

[hardindex]

Look at KF Seetoh's earlier post on FB, SMS KPK clarified that the stupid gov paid management fee to the tune of 4.86 million a year to the operator of Jurong West Hawker Centre and they have been paying them for 9 freaking years!

All those money mostly go to their board members, and likely friends and family inside the board.

 

[Z_Dash]

Why is landlord able to take 15% of total profit? Isn't this leeching like a parasite?

No wonder there are no affordable food

 

[footi3]

once you have middle man
middle man’s job is to find ways to make themselves rich

 

[lifeisinforashock]

Why is landlord able to take 15% of total profit? Isn't this leeching like a parasite?

No wonder there are no affordable food

Amazngly the tenants signed it. Were they even aware ?

 

[seowbin]

Huh? Operator pay NEA? What is this reverse tendering process?

Why would NEA pay operator?

Like that operator jiak bee hoon only ?

All gang up to bid at least 3M then they double earn from store owner also ?

 

[hardindex]

Why would NEA pay operator?

Like that operator jiak bee hoon only ?

All gang up to bid at least 3M then they double earn from store owner also ?

Not their money, the minister only worry about KPI

 

[daylight]

Hawker must apply leaves? If so, paid leaves?

this one really cannot take it.
the hawkers should be classify as self-employed. they decide for themselves when they should open shop

 

[yesman2978]

Huh? Operator pay NEA? What is this reverse tendering process?

By your logic, if hawker tender to NEA for NEA hawker stall, means NEA pays the hawker to run the stall?

You ok or not?

 

[fandango]

By your logic, if hawker tender to NEA for NEA hawker stall, means NEA pays the hawker to run the stall?

You ok or not?

No lar, it is different. Can't compare stall vs running/managing the hawker centre