NEA calls for proposals to run new hawker centre on non-profit basis

SINGAPORE — The National Environment Agency (NEA) will call for proposals from social enterprises to manage a new hawker centre at Ci Yuan Community Club in Hougang on a not-for-profit basis, following recommendations made by a panel two years ago to have more non-profit entities run hawker centres.

It has also appointed NTUC Foodfare to manage a hawker centre at Block 208B New Upper Changi Road on a not-for-profit basis, following a Request for Information (RFI) exercise in January inviting social enterprises to submit proposals for managing four hawker centres.

The leases of the four centres had expired on May 31. However, the NEA had found through the RFI exercise that most of the proposers needed time to set up their social enterprises, and do not have prior experience in managing large-scale food establishments.

“Therefore, we would like to welcome proposals from interested parties that meet the requirements in this (Request for Proposal) exercise to manage the new hawker centre at Ci Yuan Community Club from the middle of next year on a not-for-profit basis,” said an NEA spokesperson.

The hawker centre at Block 208B New Upper Changi Road replaces an existing one at Block 207 Upper Changi Road, which was part of the RFI called in January. Stallholders from Block 207 Upper Changi Road will move to the new centre.

Foodfare, which was also appointed in 2012 to run a new hawker centre in Bukit Panjang opening next year, will begin operations at the New Upper Changi Road centre on Nov 15. The NEA said it would work closely with Foodfare in the implementation of the new management model, with Foodfare expected to fully manage the centre from March 1 next year.

As managing agent, it would have to provide an all-day dining experience, maintain high standards for cleanliness in the centre, moderate food prices to ensure affordable meals for the residents and attend to feedback and complaints quickly.

“NEA is confident that Foodfare’s expertise and experience in managing large-scale food establishments and operations can be tapped to deliver affordable food and an all-day dining experience to the community, and enhance the vibrancy of the hawker centre,” the agency said.

In 2012, the Hawker Centre Public Consultation Panel proposed having social enterprises manage new hawker centres, and having the operator setting aside stalls for the lower income and special needs persons to set up low cost businesses. Hawker centres are currently managed and run by the NEA.

That same year, Foodfare, which is a co-operative, was selected to run a new hawker centre in Bukit Panjang scheduled for opening next year.

However, the idea of having social enterprises run hawker centres was also greeted with some caution, in particular after Kampung@Simpang Bedok, Singapore’s first hawker centre run by a social enterprise, shut due to poor business and lack of financial support in October last year.

The new hawker centre at Ci Yuan Community Club will contain 40 cooked food stalls and 640 seats. It is one of the 10 new hawker centres announced by the Government in 2011. It is expected to have features that can accommodate the needs of different users, including family-friendly features such as child-friendly toilet facilities and family-friendly seating.

When contacted today (Oct 3), Foodfare said it would study what is expected of the new centre as it is also the first to be part of a community centre.

“As a social enterprise we would be interested to see if we have an opportunity to widen our social role and social impact such as helping to moderate the cost of food for Singaporeans and bringing about a clean and vibrant hawker centre scene,” a spokesperson said.

Today, the NEA also reiterated it would keep rentals stable to maintain food price affordability. Stallholders previously on the subsidised scheme will continue to pay subsidised rentals of S$320 per month. Non-subsidised stallholders will pay the prevailing market rent as evaluated by professional valuers appointed by the NEA, which range from S$2,140 to S$2,360.