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Budget meal initiative no longer mandatory at HDB coffee shops

Operators and stallholders have raised concerns about the sustainability of the initiative after rising costs and low take-up rates, the Housing Development Board said.

Budget meal initiative no longer mandatory at HDB coffee shops

A sign informing of the budget meal available at a noodle stall at a coffeeshop along Yishun Ring Road on Oct 21, 2025. (Photo: CNA/Ooi Boon Keong)

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SINGAPORE: Coffee shops under the Housing Development Board (HDB) will no longer be mandated to offer budget meals, under changes aimed at making the scheme more sustainable.

Instead, coffee shop operators can decide whether to participate in the initiative, in exchange for discounts on rent or Temporary Occupation Licence (TOL) fees, HDB said in a media release on Saturday (Jan 10).

HDB has also standardised the scope of requirements for budget meals from two to six budget meals to three meal options. The requirement to offer two budget drinks remains the same.

Budget meals are typically priced at S$3.50 (US$2.70) and below, and drinks are priced at S$1.20 and below.

The change will provide residents with affordable meal and drink options for their basic daily needs, while keeping the scheme sustainable for operators and stallholders, HDB said.

The budget meal initiative was introduced in 2018 at new HDB coffee shops tendered out under HDB’s Price-Quality Method framework to provide affordable meal options for residents.  

The initiative was extended to all other HDB rental coffee shops renewing their tenancies in May 2023, and subsequently to privately-owned HDB coffee shops sold on the open market from December 2023.

As of Dec 31 last year, there were 350 HDB rental coffee shops and 48 privately-owned HDB coffee shops providing budget meals. 

The budget meals initiative applies to HDB coffee shops, and is different from the National Environment Agency's (NEA) tender condition at socially conscious enterprise hawker centres (SEHCs) to implement measures to keep food affordable, such as by offering at least one value meal at each stall.

STANDARDISED SCOPE

HDB said that coffee shop operators and stallholders have shared concerns about the unsustainability of the initiative due to rising costs and low take-up rates.

In 2023, some hawkers told CNA that they faced difficulties providing budget meals due to rising costs of operations.

Residents have also given feedback that the quality of budget meals is uneven and portion sizes can be inconsistent, HDB said.

In October last year, CNA TODAY reported that of the 40 budget meals assessed, none met the Health Promotion Board’s recommendations. 

Budget meal requirements also differ across coffee shop operators, depending on whether they are privately-owned or rented. A downside of this arrangement is that the budget meals offered could be uneven across different coffee shops, HDB said.

From Jan 10, the scope of budget meal requirements will be standardised across coffee shop operators, HDB said. 

Instead of at least four options, operators will be required to provide three meal options: an economy rice option consisting of rice, one meat, and two vegetable dishes, a Halal meal option and a breakfast item.

HDB said that with more support for operators to provide budget meals, residents can expect more consistent budget meal quality. 

An economy rice stall at a coffeeshop along Yishun Ring Road that offers a budget meal option for S$3.30, on Oct 21, 2025. (Photo: CNA/Ooi Boon Keong)

MORE SUPPORT

Previously, HDB provided rental coffee shop operators a 5 per cent discount off their renewal rents for a period of one year from the time of tenancy renewal for participating in the budget meal initiative.  

With adjustments to the initiative, the 5 per cent rental discount will be extended to the full three-year tenancy term.

The extended discount will apply to newly-let and existing rental coffee shops when they commence or renew their tenancies, if they choose to offer budget meals. 

Existing rental coffee shops that are already offering budget meals will also automatically receive the discount for the rest of their current tenancy term, HDB said. 

Operators of privately-owned coffee shops previously did not receive any funding support for participating in the initiative. 

However, they can now receive a discount on their Temporary Occupation Licence fee for the outdoor refreshment area.

This is equivalent to 5 per cent of the assessed market rent of a coffee shop over a three-year period, capped at 100 per cent of the fee.

HDB said that operators who sign up for the initiative are required to pass on the discount in full to their tenants who are the stallholders providing budget meals.

“To ensure this, HDB will require operators to sign a letter of undertaking and declare how the discount is being shared amongst the stallholders who are offering the budget meals,” HDB said.

It added that it may cease and claw back the rental discounts if they are not distributed in full to participating stallholders.

In an FAQ page for the media, HDB said that there will not be a sudden change in the number of coffee shops offering budget meals, as most operators are not due for tenancy renewal.

Additionally, the tripled funding support to operators who offer budget meals will “encourage operators to participate in the scheme and offer budget meals on a sustainable basis”, HDB said.

HDB added that low-income households that require further assistance with cooked food may tap on support initiatives by their communities, such as meal vouchers, free breakfast and free bento lunches.

RENT TRANSPARENCY

HDB said it will start collecting data on stall rents charged by operators. This will help improve transparency and help stakeholders make better-informed decisions on rent.

Rental coffee shop rents have remained stable in the past three years, with 90 per cent of HDB coffee shops not seeing rent increases, HDB said.

“Nonetheless, there are concerns that some operators may impose high rental mark-ups on their stallholders, even though the rents these operators pay to HDB has remained largely unchanged,” it added.

HDB will assess how the data can be made publicly available after collecting the data.

Additionally, HDB will require successful bidders of all new shop tenders to maintain their tendered rent for two tenancy terms, or six years, instead of one tenancy term, which lasts for three years. This applies to all newly tendered HDB shops, and not just coffee shops.

“By requiring tenderers to commit to tendered rent over a longer period, our aim is to encourage tenderers to bid prudently.” 

Source: CNA/er(rj)

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Singapore

Singapore Botanic Gardens restaurant The Halia to close after 25 years

Known for offering al fresco dining in a lush setting, the European-Asian fusion restaurant first opened its doors in 2001.

Singapore Botanic Gardens restaurant The Halia to close after 25 years

The Halia announced its closure in an Instagram post on Jan 8, 2026. (Photo: The Halia)

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SINGAPORE: Restaurant The Halia at the Singapore Botanic Gardens will shutter in mid-March after operating for 25 years.

The European-Asian fusion restaurant announced its closure in an Instagram post on Thursday (Jan 8).

"Thank you for the memories, celebrations and love shared in this beautiful space," The Halia said in the post, inviting customers for a final visit.

"We hope to create new memories with you in the near future," it added.

No reason was given for the closure.

CNA has contacted The Halia for more information.

Known for offering al fresco dining amid the lush foliage of the Ginger Garden, The Halia first opened its doors in 2001.

Many have taken to social media to express their shock and dismay at the announcement.

One Instagram user who commented on The Halia's post said that its closure was "heartbreaking" as he had just celebrated his wedding there last week.

Another called The Halia the "most peaceful and calm restaurant" she had ever visited, adding that she will miss both the establishment and the food.

RECENT CLOSURES IN THE F&B INDUSTRY

The Halia's closure follows a recent spate of eateries shutting down or closing outlets.

Open Farm Community and Tiong Bahru Bakery Safari in Dempsey Hill announced their closures on Wednesday, with both of their final days to be on Sunday.

Several Kith Cafe outlets have also closed over the past few months, including the West Coast outlet, which shut on Monday.

Pizza Express closed some of its outlets in December 2025, retaining only its Star Vista and Duo Galleria outlets.

Source: CNA/dc(kg)

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City Sprouts Bedok repairs to finish by Chinese New Year, rent-free period extended to tenants: Edwin Tong

The anchor minister for East Coast GRC met with some tenants at the troubled community hub in Bedok on Friday (Jan 9).

City Sprouts Bedok repairs to finish by Chinese New Year, rent-free period extended to tenants: Edwin Tong

Minister for Law Edwin Tong meeting with tenants at City Sprouts Bedok on Jan 9, 2026. (Photo: CNA/Fabian Koh)

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SINGAPORE: Rectification works at the City Sprouts Bedok community hub will be completed by Chinese New Year – which starts on Feb 17 this year – while a rent-free period will also be extended to tenants there, East Coast GRC anchor minister Edwin Tong said on Friday (Jan 9).

Mr Tong spoke to CNA after a meeting with some tenants at the compound built on the site of the former Kampong Chai Chee Community Centre on Bedok North Avenue 1.

Officers from the Singapore Land Authority (SLA), which is the landlord for the space, were also at the meeting, which CNA learnt about from tenants on Thursday evening.

“I came here today first to understand the issues, because I was concerned and felt that it's really a tough environment, and I think we need to do what we can to allow businesses to thrive and to do well,” said Mr Tong, who is also minister for law.

City Sprouts Bedok came under the spotlight earlier this week, after businesses said the facility is plagued by safety hazards and incomplete infrastructure, three months after its official opening.

Mr Tong said Friday’s session was “a constructive meeting” and he understood what the issues were from the three tenants he spoke to.

“We agreed on steps to be taken to solve the problems, to move forward and to also find ways in which we can enliven the space, bring more footfall here, and maybe co-host and organise events here, so that the residents around it will be aware that this space is now open and that there'll be a lot more prominence to the businesses that are here,” he said.

Mr Tong noted that City Sprouts Bedok lies within East Coast GRC and as anchor minister, he has an interest in ensuring that “the people who live and operate here are able to find solutions and work through issues constructively”.

“If there are ways in which I can help bring parties together, facilitate conversations, or support follow-up with the relevant agencies, I am prepared to do so,” said Mr Tong, who is also Second Minister for Home Affairs.

He said that his colleagues from SLA have also spoken to the master tenant City Sprouts on the issues. SLA is a statutory board under the Ministry of Law. City Sprouts was not at the meeting.

CHINESE NEW YEAR TARGET

Mr Tong said there was a consensus from the meeting, which lasted over an hour, to do “remedial and rectification works to solve the problems that have been identified”.

These include issues such as the signage and lighting in the hub, he added.

“We've set a time frame for that. I said, ‘Let's try and complete that within the next couple of weeks before CNY (Chinese New Year), so that they can then open properly for CNY business,” he said.

Minister for Law Edwin Tong looking at the entrance area of City Sprouts Bedok with tenants and Singapore Land Authority (SLA) officers on Jan 9, 2026. (Photo: CNA/Fabian Koh)

Beyond that, efforts will be made to hold events to raise the footfall and awareness of the place, said Mr Tong.

“In addition, there will also be some rental accommodation. I've asked tenants to talk to the master tenant directly,” he said.

Mr Tong noted that the food and beverage businesses, in particular, is a segment that has the most interest in addressing the issues as it needs awareness and footfall to draw walk-in customers.

He said that he found out about the ongoing issues at City Sprouts Bedok through CNA’s article on Wednesday.

“My interest piqued, because I was aware of this space. I knew it reopened recently. And that's when I reached out to the tenants to see whether we could play a part to help,” said Mr Tong.

Regarding the use of the compound’s central atrium for community events, Mr Tong said it is important to find a balance. Some tenants had told CNA earlier that the rules for using the space were unclear.

“This is a place where you have community events, but at the same time, you do have residents that live in close proximity. So it is important that we strike a balance between disamenity and also allowing the commercial and other community activities to take place,” he said.

Rectification works being done at City Sprouts Bedok on Jan 9, 2026. (Photo: CNA/Fabian Koh)

IMPROVING THE PLACE

Tenants whom CNA spoke to were positive about the outcome of the meeting with Mr Tong and the SLA officers.

They were assured that the rectification works would be completed by Chinese New Year, after which a “grander opening” would be done. The venue officially opened on Oct 4 last year.

“First and foremost. I think the minister is very sincere in getting the place rectified,” said manager Roslan Ahmad of Kebab & Co restaurant.

“They gave us the word that probably it will be done by Chinese New Year, and hopefully we can have the grand, or grander, opening again when everything is rectified.”

Ms Jackeline Goh, co-founder of Chickata Cafe, said Mr Tong told them that he can mainly help with promoting the place, such as marketing it and holding events there, so that residents in the area know about it, and also to make sure that the place is safe and hygienic for visitors.

A missing urinal at the ground-floor men's toilet of City Sprouts Bedok on Jan 9, 2026. (Photo: CNA/Fabian Koh)

Among the issues highlighted by tenants are the lack of lighting at the place and the poor condition of toilets there.

RENT-FREE PERIOD

A rent-free arrangement would also be extended to all tenants in the space while rectification works are underway.

“He did mention that if he will freeze the rental until Chinese New Year, when everything is done, then we start (paying) rental again,” said Mr Roslan. “We'll take whatever that comes.”

Ms Goh said the arrangement was agreed as “it’s not fair that tenants will get affected in this period of time” when the works are ongoing.

Mr Roslan said that ideally, he would like a longer rent-free period, at least until he can achieve stable footfall.

Minister for Law Edwin Tong with Mr Roslan Ahmad in Kebab & Co restaurant at City Sprouts Bedok on Jan 9, 2026. (Photo: CNA/Fabian Koh)

“But whatever comes, we try. We are a commercial entity. We will fight for our survival,” he said, adding that he already has some returning customers.

Ms Goh said that while the rent-free arrangement helps, it would be more beneficial if the rectification works were completed sooner.

“We want to be able to operate so that we can attract more business and more money will come in instead. Rent-free doesn't really help for the long run.”

CITY SPROUTS RESPONDS

In response to CNA queries, City Sprouts said it was not aware of Friday’s meeting. 

Founder Zac Toh said that his firm has spoken to SLA and will be giving one-month waiver on rental for all tenants there. 

It added that it has long been in contact with other political office-holders and the PA, whom they have been “working with closely at Bedok from the start”.

“We are committed to continue working with PA and SLA at Kampong Chai Chee,” said the social enterprise.

It confirmed that the ongoing phase of renovation works are slated to be completed before Chinese New Year and its Ramadan bazaar event with tenants next month.

“Other tenants have reached out to us to express their support and understanding,” said the social enterprise. City Sprouts Bedok currently houses more than 14 tenants and operators.

It noted that several upcoming community initiatives are in the works, organised in collaboration with tenants “who wish to see the space receive more positive coverage and highlights of their work as well”.

They include cat rescue and rehabilitation centre Commewnity Cat Garden, non-profit organisation Tasek Academy and Social Services and Hassan Rabit, which runs a community kitchen, said City Sprouts, adding that its “events are inclusive and open for tenants to be involved”.

Source: CNA/fk(gr)

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