Debated in Parliament on 19 Nov 2018.
Er Dr Lee Bee Wah asked the Minister for Trade and Industry in view of the impending takeover of Kopitiam by NTUC Enterprise (a) how will the Government ensure that cooked food prices remain low and affordable; and (b) whether this takeover violates the anti-competition rules.
Mr Dennis Tan Lip Fong asked the Minister for Trade and Industry (a) whether the proposed acquisition of the Kopitiam food operator chain by NTUC Enterprise will result in a substantial lessening of competition; and (b) whether the acquisition will be suspended pending the approval of the Competition Commission of Singapore, so as to avoid a repeat of the situation with Grab's acquisition of Uber's Southeast Asian operations where its impact on ride-hailing platform services in Singapore could not be reversed.
Mr Deputy Speaker, with your permission, I would like to take Question Nos 20 and 21 together, please.
Yes, please.
The Competition and Consumer Commission of Singapore (CCCS) has been notified of the National Trades Union Congress (NTUC) Enterprise's proposed acquisition of Kopitiam and its subsidiaries on 28 September 2018 and is currently assessing the transaction. NTUC Enterprise has committed not to proceed with the merger until CCCS has issued its decision.
There are many factors influencing food prices, such as cost of raw materials and manpower costs. The Government does not set food prices. Instead, we focus our efforts on helping Singaporeans to have access to affordable food options. For example, the Housing and Development Board (HDB) has reviewed tender mechanisms to consider factors, such as affordability, when tendering eating houses. The Ministry of National Development (MND) and the Ministry of the Environment and Water Resources (MEWR) have also announced plans to build more HDB eating houses and hawker centres in future. Such measures will allow consumers to make informed purchasing decisions across a range of cooked food choices.
Mr Deputy Speaker: Er Dr Lee Bee Wah.
Sir, I have two supplementary questions for the Senior Parliamentary Secretary. His answer is very short. My questions should be very short.
First question: I read from the report that Kopitiam management will continue to manage those coffee shops. I would like to ask: is there a bottom line report requirement? If yes, how to achieve a social mission?
Second question: yesterday, I was at Block 504 Kopitiam. Out of six stalls, only one stall was open and one drinks stall. So, why did Kopitiam bid for that coffee shop and leave it empty for the last two, three years? Is it to build up the volume, preparing for this transaction? Is it fair to my residents? I would like to tell the Senior Parliamentary Secretary to please do not tell me it is not under the Ministry of Trade and Industry (MTI) and ask me to file a separate Parliamentary Question (PQ).
I thank the Member for her question. Indeed, the precise inner workings of a private enterprise are not immediately within the purview of MTI. [Laughter.] However, if the Member wishes to file a separate PQ to the relevant agency or agencies, I am sure my colleagues will be happy to oblige as best as they can.
Mr Deputy Speaker: Er Dr Lee Bee Wah.
I would like to ask the Senior Parliamentary Secretary: is he aware that there is such a thing as "no wrong door" policy? Perhaps, he would like to check with his colleague in MND or HDB and get back to me.
I thank the Member for her question. Indeed, there is a "no wrong door" policy. As part of the "no wrong door" policy, it is also incumbent on us to advise Members if the question may best be answered by a department with the appropriate knowledge, competency, understanding and jurisdiction. I seek the Member's understanding on this, please.
PAPERCUTS