Hawkers express concerns over rising costs as water prices increase, urging government support to offset potential food price hikes.
SINGAPORE: The government’s announcement of a water price increase over the next two years has prompted hawkers across Singapore to consider raising their food prices, citing water costs as a significant component of their operating expenses.
In a joint statement on Wednesday (Sept 27), the Ministry of Sustainability and the Environment and the Public Utilities Board outlined a two-stage water price hike. From April 1, 2024, the price per cubic meter will rise by 20 cents to $2.94. A second increase, effective April 1, 2025, will add another 30 cents, bringing the price to $3.24 per cubic meter.
To cushion the impact on low- and middle-income households, the government is preparing additional financial assistance measures. Deputy Prime Minister and Finance Minister Lawrence Wong is expected to provide further details on these initiatives.
Concerns Among Hawkers
Hawkers have expressed worries about absorbing the increased costs, with many indicating that price hikes for food and beverages may be unavoidable.
A beverage vendor at Clementi 448 Market and Food Center said, “If the government wants to raise the price, we have no choice. If we can’t accept it next year, we will raise [our prices]. The simplest way is to increase the price to cope with it.”
A hawker selling Chwee Kueh added that rising costs for raw materials, goods, and now water, make price increases inevitable. “If the difference is big and our expenses are too high, we may raise the price because we can’t afford everything. Where will the income and wages come from?”
Call for Government Assistance
Hawkers have called on the government to offer support to help them manage their rising operational costs and avoid passing these increases on to consumers.
Currently, water fees account for 2–3% of hawkers’ operating costs. While this percentage may seem minor, it compounds existing cost pressures from previous price increases. Hawkers argue that they may have no choice but to adjust dish prices further if they are unable to absorb these additional costs.
Coffee shops, often run by hawkers, consume significantly more water than households, adding another layer of financial strain.
As the water price hikes loom, both hawkers and consumers are bracing for the potential ripple effects on food prices, while awaiting further details on government measures to ease the burden.
