Singapore's 10-Cent Drink Deposit Aims to Make Returning Containers a Daily Habit

A Small Refund With a Bigger Purpose

Singapore will introduce a refundable deposit of 10 cents on eligible bottled and canned drinks from April 1, 2026, using a small financial incentive to encourage a lasting change in everyday behaviour. The Beverage Container Return Scheme (BCRS) aims to recover more than 16,000 tonnes of material annually from more than one billion containers, with a target return rate of 80 percent by its third year.

The deposit will cover prepackaged beverages in plastic bottles and metal cans holding between 150 millilitres and 3 litres. Consumers will pay it when buying drinks in containers carrying the scheme's label and receive it back when returning those containers. A transition period lasting until September 30 means labelled and unlabelled stock will initially share shop shelves.

Dr Janil Puthucheary, Senior Minister of State for Sustainability and the Environment, has described the scheme as a significant step towards Singapore's circular economy goals. A circular economy keeps materials in use through collection and recycling, reducing the need to keep drawing on new resources.

The policy's ambition reaches beyond the money returned or the material collected. Giving an empty container a refundable value turns something easily discarded into an unfinished transaction. The bottle or can becomes something to bring back, rather than something to throw away.

That small interruption can help build a routine. Returning containers alongside shopping or other daily activities could eventually require less conscious effort, making environmental responsibility part of ordinary life rather than a fresh decision each time someone finishes a drink.

What Changes at the Checkout?

The 10-cent deposit is separate from the price of the beverage. The Inland Revenue Authority of Singapore has clarified that it is not subject to goods and services tax (GST). Consumers will pay the prevailing 9 percent GST on the drink itself, but not on the refundable deposit.

Suppliers will need to update their accounting and point of sale systems so invoices and receipts distinguish the deposit from the taxable beverage sale. For shoppers, that separation makes the amount available for refund visible alongside the cost of the drink.

The scheme covers eligible plastic and metal beverage containers regardless of their shape. Freshly prepared drinks and foods for special medical purposes are exempt. During the transition, the label will determine whether a container carries the deposit: older stock without the BCRS label will be sold without it.

Singapore has extended the original transition period from three months to six months following feedback from beverage producers. Companies said they needed more time to clear existing stock and adjust their supply chains. Full implementation begins on October 1, 2026, when only labelled containers within the scheme's scope may be sold.

The Dates That Shape the Rollout

April's launch begins a gradual change for shops, producers and consumers. Retailers will have six months to work through older inventory while newly labelled drinks enter the market.

• February 2026: Outreach is scheduled to begin through grassroots organisations, schools, youth groups and corporate partners.
• April 1, 2026: The scheme launches, with a 10-cent refundable deposit on eligible labelled containers.
• September 30, 2026: The six-month transition period ends.
• October 1, 2026: Full implementation begins, with only labelled containers permitted for beverages covered by the scheme.
• Within the first year: The return network is planned to expand from approximately 1,000 locations to 2,000.
• By the third year: The scheme aims to reach an 80 percent return rate.
• March 31, 2033: The licensed operator's seven-year operating period ends.

The National Environment Agency (NEA) has licensed Beverage Container Return Scheme Ltd (BCRS Ltd) to run the system. The company, formed by Coca-Cola Singapore Beverages, F&N Foods and Pokka, operates on a nonprofit basis.

BCRS Ltd will arrange collection and recycling on behalf of all beverage producers participating in the scheme. Its responsibilities also include maintaining data protection systems to secure operational information. Producers place the containers on the market, while the shared operator organises the system that brings them back.

Making Returns Part of the Neighbourhood

Singapore plans to open with approximately 1,000 return points at supermarkets, Housing and Development Board (HDB) void decks and town centres. The planned expansion to 2,000 locations within the first year would double the network.

The accessibility goal is for 90 percent of HDB residents to live within a walk of five minutes from a return point. Locating machines near homes and places people already visit is central to making repeated participation practical.

A refundable deposit provides a reason to return a container, but distance and inconvenience can discourage people from acting on it. Nearby return points reduce the extra time and effort involved, allowing residents to combine returns with shopping or other errands.

Void decks and town centres also bring the activity into shared public spaces. Returning containers becomes visible to neighbours, helping it become an expected part of community life rather than a task carried out only inside individual homes.

Access matters for fairness as well as convenience. A system that is easy to use in some neighbourhoods but difficult in others would place different demands on residents' time and familiarity with recycling. The coverage target seeks to make participation a shared expectation supported by nearby facilities.

How the Machines and Refunds Will Work

Norwegian company TOMRA will deploy at least 350 reverse vending machines across central and northeastern Singapore. Unlike a vending machine that dispenses a drink, a reverse vending machine receives the empty container and enables the consumer to claim the deposit.

TOMRA has established an office and warehouse facility in Kallang to support its operations. Swedish firm RVM Systems will cover eastern Singapore, while local operator SG Recycle will handle the west and north.

The machines crush and store returned containers. Smaller units can hold up to 1,000 containers, while larger models accommodate 2,000. TOMRA has indicated that machines the size of a container, capable of handling 8,000 units, may be introduced if demand requires.

Consumers will be able to tap EZ-Link cards, including student and senior concession cards, to receive immediate credit. Additional digital payment methods are due to be announced closer to launch. Instructions will be available in Singapore's four official languages.

TOMRA will work with local cleaning company Chye Thiam Maintenance on site cleaning, maintenance and the transportation of collected containers. The containers will go to a central sorting facility jointly operated by BCRS Ltd and waste collector Cora Environment.

The collection and sorting network is intended to create a closed loop, recovering material from used containers for recycling. Its anticipated annual recovery of more than 16,000 tonnes depends on a system that residents can use regularly and operators can keep functioning.

Why Producers Are Concerned About Costs

Manufacturers and importers must register with BCRS Ltd, pay a registration fee of $500 once, and ensure their containers carry deposit marks and barcodes specific to Singapore. These changes require work before a drink reaches the shop shelf.

Importers may need to paste stickers manually onto drinks brought into Singapore. That adds labour to existing transport and stock handling tasks. Producers also need to adjust packaging, processes and supply arrangements to meet the scheme's requirements.

Some smaller producers have warned that compliance costs could lead to retail price increases of between 25 cents and 70 cents per drink. Research from Nanyang Technological University highlighted those concerns, including the possibility that the additional work and expense would fall more heavily on smaller businesses.

Dr Janil has set out a lower estimate for the continuing costs. Beyond expenses incurred once during implementation, producer fees for logistics and recycling amount to approximately 3 to 4 cents per container.

Labelling costs vary according to how and where the work is done. Labels applied overseas at scale can cost about 3 cents per container, while small batches labelled locally can cost more. Adding labelling to the ongoing producer fee gives an estimated total of roughly 6 to 7 cents per unit, comparable to fees in other jurisdictions operating similar schemes.

The refundable consumer deposit and the producer's operating costs serve different purposes. Consumers can recover the 10 cents by returning the container. Producers pay fees to fund collection and recycling, alongside the costs of preparing their packaging for the scheme.

Packaging Changes and Financial Support

Producers representing 80 percent of beverage containers can change their container designs to meet the requirements without applying separate stickers, according to Dr Janil. Incorporating the required markings into the packaging can reduce the additional work and expense associated with sticking labels onto individual containers.

Smaller businesses handling limited quantities may face different practical choices from large producers changing packaging at scale. The cost discussion therefore involves both the continuing fees and the way each company prepares its products for sale.

NEA has introduced a producer transition grant of up to $2,500 to ease the initial burden. All registered beverage producers will receive it automatically, with support covering registration fees, producer fees and scheme sticker costs.

Eligible charges will be deducted automatically during billing. The arrangement provides support against the costs businesses incur as they enter the system, including the $500 registration fee.

Authorities have also pledged flexibility and support for producers that engage with BCRS Ltd to improve their operations and reduce costs over time. The longer transition period forms another part of that adjustment, giving companies until September 30 to clear older stock before full implementation.

What Overseas Experience Suggests About Habits

Northern European countries have operated deposit return systems for decades and achieved return rates above 90 percent. Their experience points to the role of normalisation: bringing back bottles becomes an ordinary activity, supported by a system people encounter repeatedly.

The explanation offered by those examples centres on routine rather than enforcement. A deposit attracts attention to the empty container, while convenient return facilities make it easier to repeat the behaviour. Over time, people can stop weighing the small financial reward each time they act.

Australia provides a closer regional comparison. Container deposit schemes across most states have been accompanied by substantial increases in return rates and reductions in litter. Participation has remained strong despite modest refund amounts.

Singapore's design combines that financial prompt with neighbourhood access. Supermarkets connect returns with shopping, while void decks and town centres make the practice visible close to home. Convenience and visibility support the shift from an occasional recycling decision to a familiar routine.

Residents seeing others return containers can reinforce the sense that this is simply what people do. The machines themselves provide a regular reminder in shared spaces, linking an individual action with a broader expectation of responsibility for the city.

Why Recovering These Materials Matters

Semakau, Singapore's only landfill, is filling rapidly. Packaging accounts for one third of domestic waste generated annually, while the plastic recycling rate is only around 5 percent. Those figures explain why the scheme focuses on recovering material that would otherwise enter the waste stream.

The BCRS is designed to produce clean, traceable streams of used polyethylene terephthalate (PET) and aluminium. PET is the plastic used in the containers covered by that material stream. Keeping collected materials identifiable and suitable for recycling supplies feedstock for recycled polymer production.

Recovering these materials reduces reliance on virgin materials and supports Singapore's commitments to reach net zero emissions. The intended benefit extends beyond diverting containers from incineration: material already used once can become a resource for further production.

The scheme uses an extended producer responsibility framework. In simple terms, companies placing beverage containers on the market also take responsibility for arranging and paying for their collection and recycling.

That responsibility gives producers a reason to consider what happens after a drink is consumed, including packaging choices that make recovery, recycling and reuse easier. BCRS Ltd provides the shared collection structure through which companies meet those obligations.

Without changes in consumption and waste handling, future generations would bear the environmental, economic and social costs of today's discarded materials. The deposit scheme seeks to connect that longer concern with a small action consumers can take after finishing a drink.

Success Will Depend on Repeated Participation

Dr Janil has placed changing behaviour at the centre of the initiative. Describing its purpose, the Senior Minister of State for Sustainability and the Environment said:

At its core, this is not simply a scheme to collect beverage containers. It is a call for each of us to change our habits and behaviours.

The government expects initial difficulties and has committed to adjusting the rollout as experience develops. Return patterns and community feedback will guide decisions on where to place additional return points during the first months.

Outreach beginning in February 2026 will involve grassroots organisations, schools, youth groups and corporate partners. Those efforts accompany the practical changes taking place in shops, on packaging and around neighbourhoods.

The scheme's measurable goals include an 80 percent return rate by the third year and the recovery of more than 16,000 tonnes of material annually. Its broader ambition is to make returning containers feel as ordinary as buying the drinks they once held.

Singapore's approach brings the financial incentive, nearby infrastructure and shared public spaces together. The 10 cents starts the transaction. A convenient and dependable return system is what can help residents complete it repeatedly, until returning a bottle or can becomes part of daily life.

Key Points

• The scheme launches on April 1, 2026, with a refundable deposit of 10 cents on eligible labelled plastic and metal beverage containers holding 150 millilitres to 3 litres.
• Labelled and unlabelled stock may be sold during the transition ending September 30, 2026. Full implementation starts October 1.
• The deposit is exempt from GST and must be separated from taxable beverage sales in suppliers' systems.
• Approximately 1,000 return points are planned at launch, expanding to 2,000 within the first year, with a target of putting 90 percent of HDB residents within a walk of five minutes.
• TOMRA, RVM Systems and SG Recycle will supply the machine network. EZ-Link cards, including student and senior concession cards, will support refunds.
• BCRS Ltd holds a seven-year operating licence ending March 31, 2033. Registered producers qualify automatically for transition support of up to $2,500.
• The scheme targets an 80 percent return rate by its third year and aims to recover more than 16,000 tonnes of material annually from over one billion containers.
• The policy aims to make returning containers a routine activity while increasing recycling and sharing responsibility for packaging waste with producers.