Food and retail players mixed on whether Energy Efficiency Grant will help with high power prices

A NEW grant for the adoption of energy-efficient equipment in food and retail sectors has drawn mixed reactions from industry players and associations, with some saying that incumbents may be deterred by a lack of incentive and perceived low return on investment.

Food manufacturers and food and beverage (F&B) players told The Business Times that new entrants, as well as firms which have not bought new equipment for years, would likely be the biggest beneficiaries of the Energy Efficiency Grant announced on Tuesday (June 21).

Noting that commercial kitchen equipment typically depreciates over 5 to 6 years, a spokesperson for the Restaurant Association of Singapore said a majority of operators will need to weigh whether it will be cheaper to “ditch their fairly new but less energy-efficient equipment, in order to purchase brand-new equipment that tilts the balance, given the high energy prices”.