Presence of Halal Vendors as Factor in Price-quality Method used for HDB Tenancies for Precinct Supermarkets and Coffee Shops

Assoc Prof Jamus Jerome Lim asked the Minister for National Development (a) with regard to the price-quality method (PQM) criteria used by HDB for tenancies of precinct supermarkets and coffeeshops, whether the affordability criteria initially used for determination of the award is subsequently monitored; and (b) if not, how does HDB ensure that coffeeshops that secure the winning bid will subsequently maintain affordable pricing.

HDB introduced the Price-Quality Method (PQM) framework for all new HDB coffeeshop tenders in September 2018, and for new supermarket tenders in October 2019. By not focusing solely on price, the PQM framework enables HDB to select quality tenants to better serve residents, with an emphasis on good track record, productivity and community initiatives, as well as the provision of affordable food and grocery options.

As part of their tender bids, new coffeeshop operators have committed to offer budget meal options, typically around $3, with one option at each stall. Meanwhile, new supermarket operators have committed to provide budget-priced options in 20 different essential grocery categories.

The provision of these budget options is monitored by HDB through regular on-site inspections and engagement with the operators. After the initial three-year tenancy, HDB will review whether to renew the tenancy based on factors such as compliance with the tenancy agreement and whether the operator continues to serve the local residents well, including through the provision of affordable options.

To ensure that halal food options are available for Muslim residents, new HDB coffeeshop operators are required to provide at least one halal food stall within their premises. This requirement was introduced in 2005.