Five-cent plastic bag charge at large supermarket chains from Jul 3

FROM Jul 3, large supermarkets must charge customers at least five Singapore cents per plastic bag, said Senior Minister of State for Sustainability and the Environment Amy Khor during her ministry’s Committee of Supply debate on Thursday (Mar 2). This was first announced in early 2022, but without a specific implementation date.

The move applies to supermarket operators with an annual turnover of more than S$100 million: NTUC Fairprice, Sheng Siong, Cold Storage, Giant and Prime. It will cover around 400 supermarket outlets, about two-thirds of Singapore’s total.

Affected stores must pass on the cost of disposable carrier bags to customers for all purchases at physical stores. These are any single-use bags with handles, including T-shirt bags and die-cut or punched handle bags.

Flat-top plastic bags for fresh produce are non-carrier bags, so they will not be subject to a charge.

Since the charge aims to nudge consumers towards using reusable bags, it covers disposable bags of all materials, including paper and other degradable materials, the authorities had previously said.

Biodegradable bags are included because their potential environmental benefits cannot be realised in Singapore, where waste is recycled or incinerated instead of directly landfilled.

A NEWSLETTER FOR YOU

Friday, 12.30 pm

ESG Insights

An exclusive weekly report on the latest environmental, social and governance issues.

Sign Up

Dr Khor said similar schemes in Hong Kong, Taiwan and the United Kingdom have cut plastic bag usage by 60 to 90 per cent.

Addressing concerns that supermarket operators might profit from the charge, Dr Khor said that for accountability and transparency, operators will have to publish information on the number of bags issued, the proceeds from the charge, and how the proceeds are used.

The National Environment Agency (NEA) has been engaging operators on using part of the proceeds to support the shift away from disposable carrier bags and nudging shoppers to bring their own, or on programmes to benefit the local community.

“NEA strongly encourages supermarket operators to channel the proceeds to social and environmental causes, so that they will be used meaningfully to uplift vulnerable groups and safeguard our environment,” said NEA and the Ministry of Sustainability and the Environment in a joint statement.

Supermarket operators with an annual turnover below S$100 million are encouraged to voluntarily implement bag charges. “Many such retailers have already done so,” reiterated the authorities.