Keeping the char kway teow cheap - At what price

Abstract

Hawker centres formed an integral part of Singapore’s food culture, and were traditionally celebrated as meccas for cheap food. In recent years however, hawkers and customers alike raised concerns over rising business costs, and the resultant increases in hawker food prices. Furthermore, younger Singaporeans seemed disinterested in becoming hawkers, threatening the survival of the sector. With these trends as a backdrop, in October 2011, the Singapore government announced that it would build ten more hawker centres, after a hiatus of 26 years. This move would increase the supply of stalls available, help push rental costs down, as well as cater for new growth areas around the island. The government also promised to test out different management models, including having non-profits run the new centres instead of government agencies. This case examines the following questions: “Why was it important for the Singapore government to ensure that the ten new hawker centres provided cheap food, and how could it do so?”