TODAYonline

Budget NTUC outlet coming up?

Nazry Bahrawi
nazry@mediacorp.com.sg

FIRST came its housebrands. Now, as prices of food items continue to climb, NTUC FairPrice is considering a "no-frills" store for low-wage workers.

A feasibility study is being done and the store could come into being next year, said chairman Ng Ser Miang yesterday at the launch of the NTUC FairPrice Foundation, to which the retailer has pledged $50 million over the next 10 years for charitable causes.

"We are conducting a feasibility study and the results should be concluded by the end of the year. The study will touch on areas such as price points, market demand and product assortments," he said in response to queries from Today.

"The no-frills store will be targeted at budget-conscious customers who are looking for products at best value," said Mr Ng, adding that FairPrice had gotten requests from its consumers for just such an outlet to cater to their needs. "We are still looking for suitable locations. Some considerations are accessibility and rental costs."

In January, one letter-writer to the press had suggested that Singapore's largest supermarket retailer consider setting up a store in an industrial or warehouse area, where rental costs would be lower.

But if it decided not to set up a dedicated budget outlet, FairPrice would still want to set aside a special section within its current supermarket structure for budget-priced products, said Mr Ng.

Retailer Mr Ameen Talib, chairman of the Kampong Glam Business Association, felt it would make greater business sense for FairPrice to take the second route.

"If you open a provision shop, you have to cover overheads such as rental. So, if I were FairPrice, I would prefer to have a line of cheap products rather than a new chain of stores," he told Today.

Another challenge: How to ensure that the budget goods benefit low-income consumers and aren't simply snapped up by other cost-conscious customers who can afford to pay more?

One way is for FairPrice to work with voluntary welfare organisations on identifying those in need and distributing the products, said Mr Lim Sah Soon, secretary-general of the Singapore Chinese Chamber of Commerce and Industry.

Another possibility is a form of means testing — setting qualifying criteria to buy such goods. But while Mr Ameen thought the NTUC's initiative was pro-social welfare, he was concerned about eroding Singapore's "no free lunch" mentality and the pitfalls of welfarism.

Meanwhile, the NTUC FairPrice Foundation is another means by which the co-operative is helping to moderate cost of living in Singapore, according to Mr Ng.

With a record revenue of $1.6 billion in the last financial year, FairPrice has committed $50 million to the Foundation over the next decade.

The money will go to charities with three strategic thrusts in mind: Helping the poor and needy, promoting nation building and community bonding, and advancing workers' welfare.

Yesterday saw the foundation dishing out its first million to the NTUC Childcare Bright Horizons Fund, NTUC Eldercare Trust, Community Chest and Food From the Heart.

Asked if FairPrice will give priority to charities within the NTUC network, Mr Ng told Today: "Grants are made based on the merit of each application."

Still, he added: "Being part of the NTUC family of social enterprises, there are natural synergies between the mission of the Foundation and the social objectives of other NTUC co-operatives, allowing us to do more good together."

FairPrice is also looking to source for cheaper products, such as rice from Vietnam rather than Thailand, and to offer a greater range of products popular with the elderly at certain supermarkets.

Last year, FairPrice gave more than $2 million to community projects and charities. It has also extended its 5-per-cent discount on more than 500 housebrand items to the end of April to help

Singaporeans mitigate the impact of rising food prices.

Second WIS to be given april 1

Singaporean workers will get their second Workfare Income Supplement (WIS), totalling $149 million, on April 1.

Together with the first payment in January, some 262,000 workers would have received WIS totalling $272 million for work done last year, as of next month.

Payment will be through the CPF and in cash, with the cash component credited into the recipients' bank accounts, said the Ministry of Manpower.

Self-employed and informal workers will receive their second WIS payment on May 1.

Those who have not registered or made their Medisave contributions, may still receive their full WIS in May if they register, declare their income and make their contributions by March 31. For enquiries, call 1800 222 2888.