HDB coffeeshop operators and stallholders can decide whether to participate in budget meal initiative
The Housing & Development Board (HDB) has announced changes to its Budget Meal Initiative, making participation voluntary for coffee shop operators while offering stronger financial incentives to those who continue providing affordable food.
Budget meal initiative no longer mandatory
HDB said in a press release on 10 Jan that it will no longer require HDB-rented coffee shops to participate in the scheme.
At the same time, operators who opt in will enjoy a longer rental discount, with the existing 5% rebate extended from one year to the full three-year lease period.
Source: Low Yen Ling on Facebook
Launched in 2018, the scheme was introduced to encourage coffeeshops and stallholders to provide affordable meals.
As of 31 Dec 2025, 350 HDB-rented coffeeshops and 48 privately owned HDB coffeeshops were offering budget meals.
HDB said it has been engaging operators, stallholders, and residents over the years to regularly review the scheme.
Programme is unsustainable due to rising costs, according to operators
According to HDB, feedback from operators showed that rising operating costs and low take-up rates made the scheme increasingly difficult to sustain.
Consumers, meanwhile, raised concerns over inconsistent food quality and portion sizes across participating stalls.
Under the revised framework, newly rented or renewed HDB coffeeshops that choose to offer budget meals will qualify for the 5% rental discount throughout their three-year lease.
Source: Sim Ann on Facebook
Existing coffeeshops that are already contractually required to provide budget meals will automatically receive the rebate for the remainder of their lease.
Private coffeeshops that offer budget meals can also receive a discount on their Temporary Occupation Licence fees for outdoor dining areas.
The rebate will be equivalent to 5% of the assessed market rent over three years, capped at the full licence fee.
Operators must pass full discount to tenants
HDB stressed that coffeeshop operators must pass the full rental discount on to stallholders offering budget meals.
Operators are required to sign an undertaking outlining how the savings will be transferred. HDB may terminate the agreement and claw back the rebate if operators fail to comply.
HDB also standardised the basic requirements for budget meals.
Participating operators must now offer three categories: budget mixed rice (two vegetables and one meat), halal meals, and breakfast options.
Source: Thiago Andrade on Facebook
The requirements for budget drinks remain unchanged.
HDB noted that a sudden drop in budget meal availability is unlikely in the short term, as most operators have yet to reach their lease renewal period.
Low-income households who require additional assistance can continue to rely on community meal vouchers, free breakfast programmes, and packed meal initiatives.
Also read: New HDB Website Helps You Locate Budget Meals Costing S$3.50 Or Less Nearby
New HDB Website Helps You Locate Budget Meals Costing S$3.50 Or Less Nearby
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Featured image adapted from Sim Ann on Facebook & Low Yen Ling on Facebook.Â
