Rental Caps for Geylang Serai Ramadan Bazaar 2024 and Similar Caps for Hawker Centres and Government-leased Commercial Properties

Mr Speaker, in the course of planning for Bazaar 2024, Wisma Geylang Serai (WGS) has reviewed the proposed rental for Bazaar 2024 in light of several learning points from the bazaar held in 2023. This includes feedback received from the stakeholders, including stallholders as well as patrons. WGS has also considered that Bazaar 2024 would likely be held on a smaller scale due to redevelopment works of the Geylang Serai Cultural Belt and would also be held for a slightly shorter duration. Given the above, WGS decided on introducing a rental cap for Bazaar 2024.

The People's Association (PA) and WGS will continue to review the operation of the rental framework in the light of prevailing conditions before deciding on subsequent bazaars and trade fairs, which it organises.

On part (b) of the Parliamentary Question, other Government agencies may have different policies and considerations in relation to the pricing of rentals for hawker centres and commercial properties, which are quite different matters from considering the pricing of a bazaar like the Ramadan Bazaar.

Thank you, Mr Speaker. Just one supplementary question for the Minister. I understand the reasons which the Minister has shared in terms of the shorter duration and smaller scale; hence, the price cap.

I was wondering whether the Ministry will consider instituting mechanisms similar to a price cap, but also considering some of these factors just to ensure that there is greater pricing visibility and so that we do not see a repeat of what happened in the last two years where, I think the last price cap was in 2019, and subsequently, we saw the rent shoot up quite significantly.

Thank you, Sir. I understand the point. If you look at the mechanism behind calculating the bazaar, I think Mr Chua said he understood the slightly shorter duration. So, what we did was we looked at the average rental 2023 and looked at the number of stalls that are available and the duration and, by and large, when we work out the average rental in 2023, against the number of stalls that were available this year, the average rental would be about $500 per day, roughly.

The cap that is going to be introduced in 2024 is designed to keep it at around, roughly, the same level or a little bit below. But the point is that there is a certain basis on which stall operators can now make a bid for the stalls, knowing that there will be this cap. And I think, to that extent, there is certainty. That is one immediately good outcome of this.

But the other factors, such as, what are the prevailing conditions, how large it will be, for how long it will be held, and those sometimes vary from year to year. So, we will take all that into account in subsequent years and bear in mind what Mr Chua has said, but look at, overall, achieving the optimal experience for both stall holders as well as for patrons.