Hawker Stalls Across Singapore Adjust Prices Amid Mounting Pressures

Singapore's iconic hawker centres, long cherished as bastions of affordable, diverse cuisine, are witnessing a wave of price adjustments. Stallholders at major centres like Chinatown Complex and Bedok Food Centre have begun increasing meal prices by 50 cents to S$1, driven by escalating operational costs. This shift comes as global events, particularly the ongoing Middle East conflict involving Iran, disrupt energy markets and supply chains, indirectly hitting local food vendors hard.

Chinatown Complex Food Centre, home to over 220 vendors and recognized as Singapore's largest hawker hub, exemplifies the strain. Operating expenses have surged by about 10 per cent in recent months, compounded by higher delivery fees from fuel surcharges imposed by suppliers. "Hawkers are facing bigger bills every time they receive their raw materials, even though they may be ordering the same amount," noted Mr. Cornelius Tan, chairman of the Chinatown Complex Hawkers' Association.

At Bedok Food Centre, similar challenges have led to daily revenue drops of at least 20 per cent for some stalls, prompting calls for temporary rental relief. These adjustments reflect a broader trend where hawkers, operating on thin margins, pass on unavoidable cost increases to maintain viability.

The Ripple Effects of Middle East Tensions on Local Markets

The Middle East conflict has sent shockwaves through global commodity markets, elevating oil prices above US$110 per barrel—a more than 50 per cent rise since hostilities intensified. Singapore, heavily reliant on imports for over 90 per cent of its food and energy needs, feels these tremors acutely despite sourcing less than 1 per cent of its food directly from the region.

Disruptions in key chokepoints like the Strait of Hormuz threaten shipping routes, inflating freight rates, insurance premiums, and logistics expenses. Fertiliser production, dependent on natural gas, faces shortages, pushing up crop cultivation costs worldwide and, consequently, prices for imported vegetables, poultry, and staples. Minister Grace Fu highlighted that while direct supply quantities remain stable, these indirect pressures could still drive food prices higher.

For hawkers, this translates to pricier ingredients like chicken, pork, and vegetables, many sourced from countries affected by elevated feed and transport costs. A multiplier effect emerges as daily deliveries from multiple suppliers each add fuel surcharges, amplifying the burden on small-scale operations.

Energy Costs Surge: From Cooking Gas to Electricity Tariffs

Energy expenses form a critical pain point for hawkers, who rely heavily on liquefied petroleum gas (LPG) for cooking and electricity for refrigeration and lighting. Town gas tariffs, regulated by the Energy Market Authority (EMA), rose by 0.24 cents per kWh to 21.92 cents per kWh before GST for Q2 2026 (April to June), reflecting higher input fuel costs from January to mid-March.

LPG cylinder prices for households climbed to S$37-S$38 for a standard 12.7kg unit, up due to global gas market volatility. While suppliers like Union Gas have absorbed increases for government-managed hawker centres—maintaining stability for over a decade—privately run food courts and kopitiams face hikes. Union Gas CEO Mr. Teo Hark Piang warned that prolonged conflict could lead to "very significant" rises, as transportation costs soar.

Electricity tariffs are also climbing, with Q2 adjustments expected to reflect the full oil price spike. These utilities, often 20-30 per cent of a hawker's overheads, directly erode profits, estimated to have fallen up to 20 per cent for affected stalls.

Ingredient and Logistics Pressures Compound the Challenge

Beyond energy, raw material costs have spiked. Imported meat, seafood, and produce see elevated prices from higher feed (due to fertiliser shortages) and disrupted trade routes. Delivery surcharges from fuel costs create a cascading impact, as hawkers receive multiple daily shipments.

The Federation of Merchants' Associations notes bulk-buying efforts to mitigate this, but third-generation hawker Ms. Faye Sai reports slight crowd drops as diners tighten belts. At Amoy Street Food Centre, off-peak weekends highlight the need for strategies to boost footfall, like targeting tourists.

Photo by Cole Keister on Unsplash

Hawkers' Perspectives: Struggling to Stay Afloat

"I hope the government can consider discounting the rental during this period," urged Hajjah Roziah Adon, chair of Bedok Food Centre Association, amid 20 per cent revenue slumps. Mr. Tan echoed calls for utility rebates, emphasising the sector's role in affordable dining.

Industry voices stress hawkers' vulnerability: low margins, ageing workforce, and rising manpower costs exacerbate global shocks. Without relief, more may exit, threatening Singapore's UNESCO-listed hawker culture.

Government's S$1 Billion Response to Cushion Impacts

In a swift move, Prime Minister Lawrence Wong announced nearly S$1 billion in advanced support. Key measures include advancing S$500 CDC vouchers to June 2026 (usable at hawkers and supermarkets), boosting Cost-of-Living Special Payments by S$200 to S$400-S$600 for 2.4 million Singaporeans in September, and gig worker aid. Additional corporate tax rebates and U-Save enhancements target households and businesses. For more details, see the ministerial statement.

The National Environment Agency (NEA) monitors hawker centres it manages, while EMA tracks utilities. A ministerial committee led by K. Shanmugam addresses supply shocks.

Consumer Impacts and Household Budget Strains

Average hawker meals, traditionally S$3-S$5, now edge higher, hitting lower-income families hardest. Food inflation hit 1.6 per cent year-on-year in February 2026, up from 1.2 per cent, per Ministry of Trade and Industry data. Overall CPI eased to 1.2 per cent, core to 1.4 per cent, but forecasts for 2026 range 1-2 per cent amid uncertainties.

FairPrice froze 100 essentials until May 31, doubling CHAS discounts, offering some respite. Yet, with utilities up, households brace for compounded effects.

Inflation Trends and 2026 Economic Outlook

MAS and MTI project core inflation at 1.0-2.0 per cent for 2026, subject to review amid conflict. Food services inflation accelerates, mirroring global trends where energy ripples into commodities. Prolonged tensions could push electricity higher in Q3.

Singapore's stockpiles and diversification—importing from multiple sources—buffer direct shortages, but price persistence looms.

Photo by Nicole Baster on Unsplash

Coping Strategies for Hawker Sustainability

Associations push online sales, government grants for productivity tools, and bulk procurement. NEA initiatives like rental rebates in past crises offer models. Diversifying menus to local, cheaper produce or energy-efficient stoves could help.

• Adopt LED lighting and efficient woks to cut electricity/gas use.
• Negotiate bulk deals with suppliers.
• Leverage CDC vouchers to attract diners.

Future Resilience: Building a Robust Food Ecosystem

Long-term, Singapore eyes '30 by 30' food security goals, vertical farms, and alternative proteins to reduce import reliance. Enhanced reserves and diplomatic hedging mitigate risks. For hawkers, succession planning and training ensure cultural continuity.

Consumers can support by choosing hawkers, using vouchers wisely, and embracing home cooking for bulk savings. As tensions evolve, balanced vigilance and adaptation will preserve affordable meals central to Singaporean life.