Residents can expect more consistent quality in budget meals as HDB coffee shop operators and stallholders receive more rental support.
Announcing updates to the budget meal initiative on Saturday (Jan 10), the housing board said that it will provide enhanced support for operators and stallholders to keep the initiative sustainable while meeting residents’ essential needs.
Under the refined scheme, which takes effect immediately, participating coffee shop operators are required to provide three meal options.
They must offer one economy rice option with one meat and two vegetables, one halal option and a breakfast option, as well as two budget drinks.
Previously, operators had to provide two to six budget meals and two budget drinks.
This refinement comes after a standardisation of the budget meal requirements as well as feedback from residents that the quality of budget meals is uneven and portion sizes can be inconsistent, said HDB.
While the housing board does not set the prices, budget meals are typically offered at $3.50 and below, as well as $1.20 and below for budget drinks.
Lower-income households who require further assistance with cooked food may tap on community initiatives offered by grassroots organisations and charities.
More support for coffee shops
To enhance financial support for coffee shop operators and stallholders, HDB said it will extend the five per cent rental discount from the current one-year period to the full three-year tenancy term.
This applies to newly-let and existing rental coffee shops when they commence or renew their tenancies, if they choose to offer budget meals.
Existing rental coffee shops that are already offering budget meals under existing requirements will automatically receive the discount for the rest of their current tenancy term.
Meanwhile, privately-owned HDB coffee shops participating in the budget meal initiative will receive financial support through a discount on the temporary occupation licence (TOL) fees for their outdoor refreshment area.
This discount will be equivalent to five per cent of the assessed market rent of the coffee shop over a three-year period, capped at 100 per cent of the TOL fee.
Coffee shop operators who sign up for the initiative must pass on rental discounts in full to tenants providing budget meals, or risk getting them clawed back.
“Under this new arrangement, operators can decide whether to participate in the budget meal initiative, in exchange for the rental discounts or TOL fee discounts,” HDB said.
Participation will no longer be mandatory — a shift from the previous policy that all HDB coffee shops must provide budget meals.
These revisions come after operators and stallholders shared concerns that the scheme was not sustainable due to rising costs and low take-up rates.
Introduced in 2018, the budget meal initiative was designed to provide affordable meal and drink options for residents.
There are 350 HDB rental coffeeshops and 48 privately-owned HDB coffeeshops offering budget meals, as of Dec 31, 2025.
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