by Jessica Lim
A LONGSTANDING practice among hawkers of subletting their stalls
- which push up rental rates - will stay in place.
The process, Environment and Water Resources Minister Yaacob
Ibrahim explained in Parliament on Tuesday, is a private
arrangement between stallholders and is based on what the market
can bear.
'My ministry currently has no plans to further moderate rental
rates, as market rents are reassessed at the point of every tenancy
renewal,' he said.
'The rates may rise or fall, depending on the prevailing market
conditions.'
He was responding to Madam Cynthia Phua (Aljunied GRC) who was
concerned about the increasing rental rates due to subletting, and
the effect this could have on food prices.
Subletting is when a hawker who rents a stall at the market rate
set by the Government then lets it out to another, often at a
higher price. The hawker then keeps the difference.
