Question

New schemes announced by the budget statement include ten new hawker centers by 2027 , a third desalination plant, SkillsFuture initiative to support lifelong learning for adults, and a second edition of Construction Productivity Roadmap to boost the industry's capabilities. Explain the supply-side effects of building ten new hawker centers and a third desalination plant.

Short answer

New hawker centers increase food supply, create jobs, and support small businesses. A third desalination plant increases water supply, supports technological progress, and attracts water-intensive industries.

Step-by-step solution

- Identify Supply-Side Effect of Hawker Centers

Building ten new hawker centers will increase the supply of food vendors. This can lead to greater availability and variety of food options, potentially reducing the prices for consumers. It can also stimulate competition among vendors, encouraging better quality and service.

- Employment Opportunities

The construction and operation of new hawker centers will create new jobs. These could be roles in construction, food preparation, service, and management, contributing to lower unemployment rates and increasing overall economic activity.

- Effect on Local Economy and Small Businesses

New hawker centers provide opportunities for small business owners to start or expand their operations. This supports entrepreneurship and can lead to growth in the local economy, providing a boost to community development and local commerce.

- Identify Supply-Side Effect of Desalination Plant

A third desalination plant will increase the supply of fresh water. This can provide a more stable and reliable water supply, crucial for both households and industries, leading to better water security.

- Innovation and Technological Progress

The construction and operation of a desalination plant involve advanced technologies. The demand for these technologies can spur innovation and investment in research and development, leading to technology advancements and efficiencies.

- Long-term Economic Benefits

Stable water supply from the desalination plant can attract industries that are water-intensive, fostering long-term industrial growth. This can lead to sustained economic development and resilience against water shortage crises.

Key concepts

Hawker Centers

Hawker centers are public food courts that house various food vendors, offering a wide range of affordable and delicious local dishes. When the government announces the construction of ten new hawker centers by 2027, it is tapping into supply-side economics. This will lead to an increase in the number of food vendors, which can result in greater food variety and potentially lower food prices for consumers.

Competition among vendors is likely to increase, encouraging better quality and service. The affordable pricing at hawker centers also makes dining out accessible for a larger portion of the population.

• More food options
• Enhanced quality and service
• Affordable dining

Desalination Plant

A desalination plant is a facility that converts seawater into fresh water. Building a third desalination plant would significantly boost the supply of fresh water in the country. This is particularly important for areas that struggle with water scarcity.

The increased water supply ensures a stable and reliable source of fresh water for both households and industries. This stability is crucial for sustaining day-to-day activities and industrial processes that depend heavily on water.

• Stable water supply
• Water security for households and industries

Employment Opportunities

The construction and operation of new hawker centers and a desalination plant will generate jobs, thereby creating employment opportunities across various sectors. During the construction phase, there will be a demand for construction workers, engineers, and architects. After completion, the hawker centers will need staff for food preparation, customer service, and management roles.

The new desalination plant will also require a workforce to operate and maintain the facility. This influx of new jobs will contribute to lowering the unemployment rate and boosting the local economy.

• Construction jobs
• Service and management roles
• Plant operation and maintenance jobs

Local Economy

New hawker centers and the additional desalination plant can significantly bolster the local economy. Hawker centers offer opportunities for small business owners to either start or expand their operations. This drives entrepreneurship and supports small businesses, which are vital for local economic growth.

Moreover, the added water security from the desalination plant can attract industries that depend on a stable water supply. This can lead to increased investments and industrial activities, resulting in long-term economic benefits for the community.

• Support for small businesses
• Entrepreneurship opportunities
• Attraction of water-dependent industries

Technological Progress

The development of a desalination plant involves advanced technologies. Building a new plant can spur innovation, as it requires cutting-edge technology for efficient water conversion processes. This fosters investment in research and development, paving the way for technological advancements and increased efficiencies in water treatment.

The continuous demand for improved technologies can drive progress in various fields, ultimately benefiting the broader economy. The SkillsFuture initiative, which supports lifelong learning for adults, and the Construction Productivity Roadmap are parallel efforts that also aim to boost industry capabilities through technological progress.

• Innovation in water treatment
• Investment in research and development
• Broader economic benefits