This is pretty astute.
Theoretically, the owner could probably get away with charging quite a lot more. If he were a cynical man/short-termist he could double/triple his prices (possibly even 10x his prices) and still be turning away business in the next couple of weeks while the hype train is running. The spectrum of prices for food in Singapore is pretty wide, you can easily have a meal for anywhere from 4SGD to 200+SGD so there would still be people up for trying Michelin-quality chicken rice if he suddenly started charging 20SGD for a meal.
That will definitely rub the community up the wrong way, given that hawker food is very much deeply entwined with the local community and relies heavily on regulars. The owners are often from the community too so such behaviour would incite feelings of "casting aside your roots".
Would seriously love to give this a try though, when I think of michelin food I tend to think of Heston-style experimental cuisine, which pushes the boundaries of food and employs novel cooking techniques. This type of food is labour intensive though and doesn't really work when one guy in a stall is serving 180 chickens a day. Hawker food done right is like the pinnacle of home-cooking so would be good to taste first-hand how good this is!