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Proposals · Part II · Rebuilding the hawker economy

§2.5

The Affordability Compact (price freedom, compensated budget meals)

Certified heritage and new-entrant stalls price freely; any budget meal kept as public policy is opt-in, and the state pays the gap.

No operator or agency may mandate loss-making budget meals or discount absorption as a tenancy condition. Where a budget line is public policy, the state pays the gap between the budget price and a published reference cost, on the public ledger and discoverable through the existing BudgetMealGoWhere portal. Affordability moves to the buyer's side through Makan Vouchers. Follow the Plate finds price freedom is a lossy transfer from diners to hawkers, so it stays tied to certified and new-entrant stalls, with the vouchers beside it.

Who pays

ASK OF GOVERNMENT · BUILDS ON

What it costs

Small; the gap on each meal

the State pays the difference between the cheap price and a published cost of making the meal

What it builds on

NEA does not require budget meals at its own centres; HDB made coffee-shop budget meals voluntary, with a pass-through rent discount, and began collecting stall-rent data (Jan 2026); SEHC per-stall commitments remain, with margins of cents (§1.3).

The ask of Government

Decision
Paying for budget meals where a cheap meal is kept as policy
Instrument
NEA administrative – the value-meal tender condition at operator-run centres becomes voluntary at the pilot centres, with the gap paid, as HDB did for coffeeshops in Jan 2026
Fiscal cost
Small; the gap on each meal
What it buys
Finishes a correction Government has already begun, and moves the policy's cost into the public accounts, where it belongs.

From §7.7.

Who gains

Diners
Prices at certified stalls move with quality – cushioned, for those who need it, by the voucher (§1.4).
Hawkers
If you can pay, you pay what the food is actually worth, and the uncle who made it finally banks the difference (§2.5).
Government
Moves the policy's cost onto the public ledger where it belongs (§7.7).

Model scores

Scored by the Follow the Plate model. How the scores work is in Follow the Plate, D.7. Cash and savings are shown separately. “Per programme dollar” is the household gain for each dollar the programme spends.

Price freedom, +5% (§2.5): +5% price at a certified stall; demand responds at elasticity -0.5
Amounts a yearPer tendered NEA stall (NEA centre, tendered)National, at 20% take-up (2,840 stalls)
Programme cost$0$0
Net public cost−$172−$3,340,174
Hawker household: cash$6,431$20,908,546
Hawker household: savings and other gains$775−$127,308
Diners−$10,345−$34,589,761
Per programme dollar: all gains––
Per programme dollar: cash––

Where the library discusses it

§2.5 · §1.3 · §7.7 · Follow the Plate, D.7 · Follow the Plate, D.7.1 · Follow the Plate, D.7.3 · Follow the Plate, D.7.4

Note: The chips on §2.5 cover both the Compact and the Makan Vouchers. The model scores the price-freedom half only (+5% price at elasticity −0.5); budget-meal compensation is not modelled.

Related proposals

Sources

This is a working paper for public discussion. Every number in it is an invitation to improve it. Corrections and better data are welcome.