Affordable Cooked Food Prices Despite Merging of Two Food Court Operators
Ministry of Trade and IndustrySpeakers
Summary
This question concerns NTUC Enterprise’s acquisition of Kopitiam and its potential impact on competition and cooked food prices in Singapore. Er Dr Lee Bee Wah and Mr Dennis Tan Lip Fong questioned how the Government ensures affordability and whether the merger violates competition rules. Senior Parliamentary Secretary Dr Tan Wu Meng replied that the Competition and Consumer Commission of Singapore is assessing the deal and the merger is suspended pending a decision. He explained that the Government focuses on ensuring access to affordable food through HDB tender mechanisms and building more hawker centres rather than setting prices. Lastly, he noted that the internal management and specific business strategies of private enterprises are not within the direct purview of his ministry.
Transcript
20 Er Dr Lee Bee Wah asked ask 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.
21 Mr Dennis Tan Lip Fong asked ask 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 South East Asian operations where its impact on ride-hailing platform services in Singapore could not be reversed.
The Senior Parliamentary Secretary to the Minister for Trade and Industry (Dr Tan Wu Meng) (for the Minister for Trade and Industry): Mr Deputy Speaker, with your permission, I would like to take Question Nos 20 and 21 together, please.
Mr Deputy Speaker: Yes, please.
Dr Tan Wu Meng: The Competition and Consumer Commission of Singapore (CCCS) has been notified of 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, HDB has reviewed tender mechanisms to consider factors such as affordability when tendering eating houses. MND and 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.
Er Dr Lee Bee Wah (Nee Soon): Thank you, Sir. I have two supplementary questions for the Senior Parliamentary Secretary. His answer is very short. My question should be very short.
First question: I read from the report that Kopitiam management will continue to manage those coffeeshops. I would like to ask is there a bottomline report requirement? If yes, how to achieve 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 coffeeshop 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 Senior Parliamentary Secretary, please do not tell me it is not under MTI and ask me to file separate Parliamentary Question (PQ).
Dr Tan Wu Meng: 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 she 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.
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.
Dr Tan Wu Meng: 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, the appropriate competency, the appropriate understanding, the appropriate jurisdiction. I seek the Member's understanding on this, please.