I think it was over a decade ago. But I still remember that one fateful Sunday morning when I went down to the hawker centre below my block, craving my usual pratas—only to find the stall shuttered and dark. It was a small loss, but it hit unexpectedly hard. That memory, oddly enough, has stuck with me till today.
So when I saw recent headlines about the rising number of local eatery closures, it struck a familiar nerve. And I’m clearly not alone. A poll I conducted last week revealed that 84.5% of respondents had seen one of their favourite hawker stalls close in the past year. Honestly, this didn’t come as a surprise because according to The Independent Singapore News, local F&B closures reached an average of 307 per month in early 2025, up significantly from 254 per month in 2024.
As a result, calls for rent control have surfaced again. At first glance, it sounds ideal: protect our hawkers and local F&B business owners by preventing landlords from hiking rents overnight. But the truth isn’t that simple.
In this article, I’ll talk a little bit on why I think rent control isn’t quite the solution many hope it is, highlight some current support measures (and their limitations), and suggest some practical alternatives that could make a difference.
Rent Control Isn’t the Answer to Saving Local F&B Businesses
- Rent Control—good intentions, unintended consequences
- Are our current government measures effective?
- Deeper structural issues are the real problem
- Smarter solutions worth considering
- Final thoughts
Rent control—good intentions, unintended consequences
The painful reality is that rent is just one piece of the puzzle. Local hawkers and F&B business owners face numerous pressures: rising ingredient costs, soaring utility bills, manpower shortages, and hefty delivery platform commissions. Take a plate of chicken rice. What used to comfortably sell at $4.50 now needs to edge closer to $6.80 just to break even.
Let’s be clear: rent control is a tempting idea. Who wouldn’t want to stop landlords from doubling rents overnight? But history shows us that rent control often backfires. A comprehensive study from Stanford University has found that rent-controlled policies in cities like San Francisco have led landlords to convert their properties to other uses, limit maintenance, or sell them altogether—ultimately reducing the availability and quality of rental units.
Now, imagine applying this scenario locally. If landlords feel their income is forcibly capped, their incentive to maintain and improve facilities might diminish significantly. The bustling, clean hawker centres we love could slowly become run-down and uninviting—not exactly a winning recipe for Singapore’s beloved food culture.
Are our current government measures effective?
The Singapore government is aware of these challenges and has rolled out various support schemes to help small F&B businesses and hawkers stay afloat (or at least adapt).
Hawkers, in particular, enjoy some tailored support: the National Environment Agency (NEA) runs an Incubation Stall Programme that offers subsidised rents for the first 15 months to aspiring hawkers launching their first stall.
This gives new entrants breathing room to establish themselves, and even covers basic stall equipment to save on startup costs. NEA also introduced a Hawkers’ Succession Scheme to pair retiring veteran hawkers with younger successors. The idea is to pass down recipes and an existing customer base, helping the newbie start off with a proven concept. Such initiatives aim to sustain the hawker trade by lowering entry barriers and preserving culinary heritage.
For other local F&B businesses, support tends to come in the form of grants and capability-building rather than direct rental aid. For instance, the Productivity Solutions Grant (PSG) co-funds businesses to adopt IT solutions or equipment that streamline operations.
By improving productivity, a business can save on manpower or costs, partially offsetting rent pressures. Another broad-based scheme is the Enterprise Development Grant (EDG), which subsidises projects to upgrade or transform the business—whether through innovation, automation, or venturing into new markets. These grants (typically covering up to 50 to 70% of qualifying project costs) help companies build resilience and new revenue streams in a competitive landscape.
The thing is—these schemes are genuinely helpful. Reducing costs (through grants for productivity, digitalisation, manpower, etc.) can aid new hawkers or F&B business owners get off the ground easier.
But here’s the catch: when rent hikes outpace the savings from government support, even the most optimised businesses end up back at square one—struggling to stay afloat, with little leverage in landlord negotiations and no real solutions for managing escalating rental costs.
Deeper structural issues seem to be the real problem
The real issue here is largely systemic. Most local hawkers and eateries rely on short-term leases, usually spanning one to three years. Each renewal becomes a high-stakes gamble, often accompanied by steep rent hikes if landlords sense market demand or if they give away to incoming landlords.
For instance, a 76-year-old vegetarian stall owner on Serangoon Road saw his monthly rent leap overnight from $930 to $3,000, forcing closure. Similarly, small cafés like Flor Patisserie in Siglap faced a staggering 57% rent increase, pushing them out of beloved community spaces.
Open-market bidding further exacerbates the problem. Popular hawker stalls attract record tenders—in 2024, one stallholder in Marine Parade bid $10,158 per month—a clearly unsustainable amount for most operators. This environment inflates expectations across the market, making rents increasingly unrealistic.
Solutions worth considering
Instead of imposing rent control, here are practical solutions that deserve consideration.
Alternative #1: Longer-term leases
Encouraging or mandating lease terms of five or even ten years could provide stability for hawkers and local cafés. Beyond stability, longer leases also allow business owners to invest confidently in their establishments, knowing they have ample time to recoup their investments and potentially grow their customer base.
Pre-agreed incremental rent increases also provide transparency and predictability, reducing anxiety during renewals.
Alternative #2: Enforceable leasing guidelines
Currently voluntary leasing codes could be made enforceable, ensuring fairer lease negotiations. Such guidelines would grant tenants genuine bargaining power, preventing sudden and drastic rent increases.
By clearly defining expectations and responsibilities for both parties, disputes could be minimised, fostering healthier tenant-landlord relationships.
Alternative #3: Incentives for landlords
Offering tax breaks or subsidies to landlords who adopt fair, long-term lease agreements would encourage more sustainable and responsible leasing practices. Instead of penalising property owners, positive incentives can motivate landlords to think long-term, recognising the value of stable, thriving tenants over transient high bidders.
By addressing these root structural issues, we can build a more sustainable ecosystem for our valued hawkers and local eateries.
My final thoughts
Ultimately, rent control isn’t the silver bullet it may appear to be. A nuanced, structural approach is required to genuinely resolve the challenges facing hawkers and local F&B establishments.
Next time you enjoy your favourite local hawker meal or neighbourhood café visit, remember this goes beyond rent alone. You can do your part by voicing out your support for more practical policies and patronising local eateries to help preserve Singapore’s diverse and thriving food scene.
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About the author
Having been writing for a little over 10 years, KC has flexed his pen in a variety of industries—think automotive, fitness, entertainment, and finance. He’s ultimately on a mission to prove that any topic, no matter how serious, can be made fun.
Off-duty? It’s all about food, drinks, parties, and gaming marathons.