I had lunch a few occasions in the canteen of the SIA Training Center and the Defense Science Organization. The prices were half of those charged in the privatized canteens. I was told that the stall holders had to pay a rental, but it was a modest rent and not the highest that the market could bear. Due to competition from a few stall holders, the prices had to be kept low, to cover the cost of rental, the ingredients and the labor. The stall holders could make a living, and the prices were kept low.
This was the business model adopted in the market and food courts that were leased out by the HDB and the Ministry of Environment two decades ago. It was a good model. It did not follow the maxim of tendering to get the highest market price, i.e. to maximize the returns. The controlled rentals still reflect the cost of cost of building these facilities. It was a good model to keep prices affordable over the long term, and to keep the cost of living low.
To prevent abuse by the stall-holders, the landlords forbid the sub-letting of the stalls. Exceptions can be made for older stall holders who wish to pass the business to their children. This can be managed, and is not a serious challenge.
Unfortunately, the Government decided to privatize and sell the stalls to the private sector. This has produced results that turned out for the worse. It is time to change and go back to the old model.
The recent move by the Government to build new markets and food courts that are operated by social enterprises is a step in the right direction. I wish the Government well in this experiment and hope that they have the wisdom and experience to deal with the challenges.
This was the business model adopted in the market and food courts that were leased out by the HDB and the Ministry of Environment two decades ago. It was a good model. It did not follow the maxim of tendering to get the highest market price, i.e. to maximize the returns. The controlled rentals still reflect the cost of cost of building these facilities. It was a good model to keep prices affordable over the long term, and to keep the cost of living low.
To prevent abuse by the stall-holders, the landlords forbid the sub-letting of the stalls. Exceptions can be made for older stall holders who wish to pass the business to their children. This can be managed, and is not a serious challenge.
Unfortunately, the Government decided to privatize and sell the stalls to the private sector. This has produced results that turned out for the worse. It is time to change and go back to the old model.
The recent move by the Government to build new markets and food courts that are operated by social enterprises is a step in the right direction. I wish the Government well in this experiment and hope that they have the wisdom and experience to deal with the challenges.
6 comments:
KL, do you believe that anyone will act on this? The ministry and agency is fully aware. The old guard within them will only change the policy at cabinet's behest. And this will only happen when the ruling party loses enough votes are lost in 2016 and 2021.
Do not expect the PS, DS and Directors to bother with such matters because it depends on where the wing blows politically, decided by the people.
As for the people, 50% will not understand the consequences of their vote.
our society has been conditioned to making more money is the end and people is the mean
At the Staff Canteen of Terminal 1, the price is never cheaper for airport staff. They charge higher price to the public inclusive ex-union member or ex-staff.
The staff Canteen is located at left hand side of Arrival Hall. It is run by the worker union.
I went to my girls' canteen and bought a warm soya bean drink at 40 cents. Similarly, it cost 70 cents from most of the hawker centre in Ang Mo Kio. To me, both tasted the same.
My point is if you leave eateries' rent to market forces, the food could easily cost much more than school canteen. In the end, the heartlanders suffered. Govt should work hard to lower cost of living in Sgp and not leave everything to market forces. On one hand, the Minister expect to be paid top dollar, on the other hand, the heartlanders are left to deal with the raising cost contributed by market forces or profiteering....where is the justice? Take my tax money to pay high Civil servant salary and I have to deal with high cost of living because Govt leave the rentals to market forces...
It is irresponsible to demand for high salary [>$700,000 a year for entry Minister] and expect your paymaster [taxpayers] to earn your salary for you:-
i) Cannot solve low birthrate, so tell public every other country is facing the same problem. Funny that Minister did not use same logic during salary review.
ii) Economy slow growth or recession. PM said it is external factors, cannot help it. Funny that Ministers do not same logic for their Salary i.e. Other foreign leaders paid less then them but Sgp Ministers insist for more - cannot help it...
iii) Public must put effort in integrating foreigners. Flood Sgp with 1 million or 25% of the population and caused local PMET to become jobless or change to low paying job with high cost of living & medical cost, then ask PMET to help to integrate foreigners struggling with $0 income and the Ministers earn at least $60,000 a month. Survival is more important than listening to the Minister empty talk. Why don't the Minister forego his salary for 1 year and try to walk the talk?
iv)House and Car too costly. It affects inflation as well as raise the cost of living. Worst, it makes young Singaporeans borrow more and have less disposable income for old age saving. Govt should put more effort in reducing these cost.
v) Foreigners turn Singaporeans to win sports medal. Why spent so much money to convert foreigners to singaporean just to win a medal that is won by a foreigner-Singaporean. To me, the medal belongs to a foreigner made possible by spending too much money to make it happen.
At KTPH, the staff canteen is run by NTUC Food Fare. A wanton noodle costs S$3.50 - an additional pain after higher medical cost.
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