Lawrence Wong
Singapore
“Sir, we will provide more information. I see the value of getting Ministries to put out more information, to share more about how their resources are being used and what outcomes they have achieved.”
“Sir, I agree fully with Mr Azhar that human capacity, human capital is critical. In fact, I would say the long-term potential of Singapore, how far we go really depends on us being able to maximise our human potential. That is key and that is why we have long invested in education. And it is not just about the investments.”
“Sir, we have been maintaining that commitment of 1% for some time now. I do not think it is about saying that we just have to do more and spend more. As many have highlighted, we want to ensure good outcomes from our R&D spending as well. So, we will continue if the outcomes are good.”
“This has never been the case. Temasek, when it started, was always very clear about its mandate from the very beginning – commercial, not doing national service, focused on commercial outcomes.”
“Sir, the MOF economists when they look at fiscal projections use Government's forecast of the economy, which is also published. We would typically use the mid-point of the range and then, of course, because these are in nominal terms, you have to factor for that. And the projections are done on those basis.”
“Sir, I was relieved that Mr Loh said he only has one question, but he asked the most difficult question. To answer the question, we will continue to monitor cost of living across all segments of society.”
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“We, therefore, also encourage residents to report any defects or potential issues to the relevant authorities.”
“In designing and constructing Housing and Development Board (HDB) flats, HDB ensures that all its buildings, including the external facade features, are designed to resist forces due to wind and rain, and conform to the approved Codes of Practice, the Building Control Act and Regulations and Statutory requirements. Durable materials, such as reinforced concrete, aluminum and stainless steel, are used. Inspections are also done during construction to make sure the works are done properly. In the case of claddings and fixtures, these are usually designed and inspected by a Specialist Qualified Person. Post-construction, there are various inspection regimes in place to ensure HDB buildings are well-maintained and remain structurally sound, for example, the Periodic Structural Inspection (PSI) regime that ensures that buildings are regularly checked for structural defects, so that these can be rectified early to keep the buildings structurally safe for continued occupation. For HDB building facades, Town Councils are responsible for their maintenance under the Town Councils Act. The Town Councils conduct regular visual inspections on the building facades and, where necessary, engage a Qualified Person to follow up on the repairs. In addition, HDB conducts annual audit inspections of selected blocks, with a focus on buildings with more façade elements. These various regulatory and inspection regimes have ensured our HDB buildings are safe. Nevertheless, no regime is 100% foolproof. We will continue to review our policies and benchmark against other high-rise high-density cities to identify areas for improvement. Everyone has a role to play in ensuring a safe living environment.”
“The Housing and Development Board (HDB) is committed to helping Singaporeans, particularly first-timers and lower- to middle-income families, to own a home. The income ceiling helps to ensure that housing subsidies are given to those who need them most. At the current income ceiling of $12,000, the majority of citizen households, or about eight in 10, are able to buy a subsidised flat. Households with a monthly income above $12,000 have other housing options. For example, those earning up to $14,000 may buy an Executive Condominium unit from property developers. There is no income ceiling restriction to buy a resale HDB flat on the open market.”
“Housing and Development Board (HDB) blocks are designed to comply with the prevailing Fire Code when they are built. All HDB flats are designed as fire compartments, with concrete walls and floors that help to prevent the spread of fire beyond or into the unit. HDB carries out regular reviews of fire safety in HDB blocks and has enhanced fire safety provisions for older blocks over the years, such as through providing fire-rated doors to the main entrances of flats, as well as installing rising mains and fire lifts to facilitate firefighting. Sprinklers are currently provided in certain areas of HDB buildings as required by the Fire Code, such as some basement car parks, as well as some commercial and social communal facilities. The Singapore Civil Defence Force's assessment at this point in time is that there is no need to install sprinklers within the residential units. At the end of the day, what is most important is fire prevention. Residents who intend to use personal mobility devices (PMDs) should exercise caution by only buying such devices from reputable sources and avoid overcharging their batteries or tampering with the electrical components. The Land Transport Authority is also working with relevant stakeholders to study if safety requirements can be imposed on motorised PMDs to mitigate potential fire risks.”
“This is to ensure that the structural works are carried out according to the approved plans. BCA also conducts targeted inspections on structural works. Upon completion of the works, the QP and the builder have to certify that the structural works have been built in accordance with approved plans and building regulations. BCA will take enforcement action against any party who contravenes the regulations.”
“The public sector procurement framework ensures that construction tenders, including civil engineering projects, are evaluated in a fair, transparent and competitive manner, while taking into account considerations, such as quality and safety. Government agencies adopt the Price Quality Method framework to evaluate construction tenders, including civil engineering projects, with an estimated procurement value of $3 million and above. These tenders are evaluated based on both price and non-price criteria. For civil engineering tenders, the weightage allocated to non-price attributes, such as design quality and safety, varies from 30% to 50%. Agencies have the flexibility to determine the weightage allocated to non-price attributes, and the allocation to each attribute, depending on project complexity and specific project requirements. For any development involving structural works, there are several layers of checks and controls. At the design stage, the developer must appoint a Qualified Person (QP) to design the structure in accordance with the relevant codes and requirements to ensure safety. Further, the developer must also appoint an Accredited Checker (AC) to review the QP's design and check on all key structural elements, before the structural design plan is submitted to the Building and Construction Authority (BCA). In addition, for every submission, BCA will conduct a sampling check of the plans and design calculations of selected key structural elements, to ascertain that the QP and the AC have carried out the design and checks in accordance with the building control legislative requirements. At the construction stage, the builder has to carry out structural works under the supervision of a QP and a team of site supervisors.”
“Under the 2-room flexi scheme, elderly Singaporeans can buy a 2-room flexi flat on a shorter lease of 15 to 45 years. From August 2015, when the scheme was introduced, till June 2018, three short-lease flats have been returned to the Housing and Development Board (HDB) due to the demise of the elderly owner. HDB puts the returned flats that are ready for sale in the next available Sale of Balance Flats (SBF) exercise, where they are indicated as "repurchased flats". This information is also provided in the invitation package provided to shortlisted applicants before the selection appointments.”
“Protecting our biodiversity is key to our City-In-A-Garden vision. That is why we require developers of projects near our nature reserves to assess the potential impact of their works on the flora and fauna in the area. Developers would then need to propose appropriate mitigation measures to protect wildlife based on this assessment, which are evaluated by Government agencies. If there are unanticipated environmental impacts or if mitigation measures prove ineffective, the developers should alter their mitigation plans or propose additional measures in consultation with the relevant technical agencies. Depending on the specifics of the project, vehicular speed reduction measures may be required, for instance, the installation of humps and road signs. Beyond site-specific measures, our agencies have worked with the Traffic Police to include content about wildlife crossings in the Basic Driving Theory handbook. We hope this will encourage motorists to exercise greater caution when they see wildlife crossings indicated, for example, via signs or road markings. Agencies will continue to partner developers, as well as nature groups, to improve wildlife protection around development sites.”
“Since 1996, the Fire Code requires the main doors of some Housing and Development Board (HDB) flats, for example, those which face fire escape routes, to be fire-rated. All flats built by HDB since then have been provided with fire-rated main doors, where required. HDB also carried out a one-off door replacement exercise for flats built prior to 1996 which needed fire-rated main doors to comply with the Fire Code, at no cost to residents. As the units with fire-rated doors have already enjoyed a free replacement of doors by HDB, HDB will not provide any further subsidy for the replacement of their fire-rated doors.”
“As at May 2018, 15,200 2-room flexi flats have been offered for sale since the Housing and Development Board introduced such flats in August 2015. This comprises 1,900 (13%) unsold flats, 7,000 (46%) sold under 99-year leases3, and 6,300 (41%) sold under 15- to 45-year leases.”
“The Agri-Food and Veterinary Authority (AVA) has worked with the National Parks Board (NParks) to address the noise nuisance caused by mynahs roosting in trees around Bukit Timah Plaza. NParks has increased the frequency of tree pruning since 2017, and this has improved the situation. AVA also conducted a trial using a bird deterrent chemical on the trees in the area in the second half of 2017. However, the chemical was not effective in deterring mynahs from roosting. AVA is assessing other measures that can be deployed in this area. The public can also play a part by maintaining the overall cleanliness of the environment and not feeding wild birds. Enforcement actions will be taken against those who do not comply.”
“The Lease Buyback Scheme was first introduced in 2009 as a monetisation scheme for low-income elderly living in 3-room or smaller flats, as these households have limited monetisation options compared to households in larger flat types. With the extension to 4-room flats in 2015, many more households are now eligible. Elderly households in 5-room flats currently have several monetisation options. They can either rent out a room or the entire flat and move in with their family members. They can also right-size to a smaller flat. If they right-size to a 2- or 3-room flat, they may also apply for the Silver Housing Bonus. The Ministry of National Development and the Housing and Development Board are committed to providing elderly flat owners with various monetisation options to suit their retirement needs. We will continue to monitor the situation and consider the need to extend existing monetisation schemes.”
“The Singapore Police Force (SPF) works closely with the Housing and Development Board (HDB) and Town Councils to ensure and enhance security in public housing estates. Currently, HDB Multi-Storey Car Parks (MSCPs) have Police cameras installed at strategic locations, such as lift lobbies, entrances and staircases. These cameras have proven to be effective in helping to deter crime. HDB will install closed-circuit television (CCTV) cameras in existing MSCP lifts, where necessary. As for smoking in lifts, the National Environment Agency (NEA) takes a serious view towards smoking violations, and NEA officers are deployed to investigate and enforce against smoking violations. Ultimately, residents must also do their part and be considerate by not smoking in the lifts.”
“There are currently about 450 families who were successful in their application and are waiting to be allocated a public rental flat. At this juncture, families can be allocated a rental flat in about two months from the time of their application, if they are not particular about location. This has fallen significantly from a peak of 21 months in 2008. Some waiting time is inevitable as the Housing and Development Board (HDB) needs to assess each application. The allocation of rental flats is also subject to considerations, such as the household's locational preferences, the quotas under the Ethnic Integration Policy, and the setting aside of vacant flats to house existing tenants whose rental blocks are due for redevelopment. The Fresh Start Housing Scheme was launched in December 2016 to help second-timer families with young children living in public rental housing to own a home again. As of May 2018, 70 households have been emplaced on the scheme. While we do not have a target, we will continue to work with all eligible families who are keen on home ownership, and we hope to see another 100 households emplaced in the next three years.”
“Singapore Citizen households enjoy a significant housing subsidy when they buy a new flat from the Housing and Development Board (HDB) or a resale flat from the open market with a Central Provident Fund housing grant. If they purchase another flat from HDB, they are no longer eligible for the full subsidy, which is meant for first-timers only. Hence, a resale levy is imposed if they are not a first-timer. Nonetheless, we have put in place various measures to help seniors who purchase a 2-room flexi flat from HDB. Since 2015, we have waived the accrued interest for seniors liable for the percentage resale levy2. For those who purchase a short lease 2-room flexi flat, we provide further help by capping their resale levy and adjusting it for the shorter lease. This means that the maximum resale levy that would be paid on a 2-room flexi with a 45-year lease is $18,000, much lower than what the normal resale levy would be. We will continue to review our policies to ensure that they maintain a fair allocation of public housing subsidies between first-time buyers and other buyers.”
“The Urban Redevelopment Authority (URA) is currently conducting a consultation exercise to seek the public’s views on a proposed regulatory framework for the use of private homes as short-term accommodation (STA). Under this framework, URA proposes to establish a new use category for STA under the Planning Act. URA will assess the eligibility of a property for STA use by considering factors, such as its location and surrounding uses. For strata-titled developments, such as condominiums, STA use will only be allowed if there is support of at least 80% in share value. The framework proposes several measures to mitigate the potential disamenities arising from STA. These include an annual 90-day cap on STA use, an occupancy cap of six persons per home, and submission of STA guests' details as part of the registration process. All STA units will also need to comply with fire safety regulations. In addition, we are studying the possibility of regulating STA platforms through a licensing framework. This means that platform operators will be required to obtain a licence to advertise any STA activities in Singapore. URA will work with relevant Government agencies to review the feedback obtained through the ongoing consultation exercise before finalising the regulatory framework for STA.”
“BCA and HDB have also jointly called for proposals to develop a drone inspection system for building facades.”
“Under the Building Maintenance and Strata Management Act, building owners are required to ensure that building exteriors are maintained in a state of good and serviceable repair. For Housing and Development Board (HDB) estates, Town Councils conduct regular inspections on building façades as they are responsible for the maintenance of common property. Where necessary, they will engage a Professional Engineer to follow up on any repairs that are required. In addition, HDB conducts annual audit inspections of selected blocks, with a focus on buildings with more facade elements. As highlighted in the Committee of Supply debate earlier this year, the Building and Construction Authority (BCA) will be introducing a Periodic Facade Inspection regime to enable early detection of tell-tale signs of deteriorating facade elements. This will allow building owners to carry out the necessary maintenance and repairs. The regime will focus on buildings above 20 years old, with the exception of private landed houses, temporary buildings and low-rise buildings. We intend to introduce legislation by the end of this year. Since 2017, BCA has made available a Facade Access Design Guide to help designers integrate suitable access solutions at the upstream planning and design stage to facilitate downstream inspection and maintenance of facades. To complement the upcoming facade inspection regime, BCA is working with the industry to develop inspection guidelines for the different types of facades commonly found in Singapore. In addition to training and certifying facade inspectors, BCA is investing in research and development to see how inspections can be carried out in a more effective and productive manner.”
“The Ministry of National Development and the Ministry of Health have been working together on plans to develop retirement housing and assisted living projects to expand the range of housing options for our senior citizens. We are studying the possibility of converting vacant school sites for such developments. Their location within established housing estates will enable residents to age in residential surroundings. Their relatively large site area can accommodate a significant number of housing units and common spaces, allowing residents to interact with one another and develop a sense of community. However, there are also costs involved to rejuvenate the ageing vacant school properties and reconfigure them for housing purposes. We will continue to study different models of retirement housing and assisted living developments to better meet the needs of our senior citizens and will share more information on our plans when ready.”
“The Housing and Development Board's (HDB’s) pet ownership policies have to strike a balance between residents who are pet lovers and those who are not. A necessary precondition is responsible pet ownership. Most cat-related disamenities are due to the irresponsible behaviour of certain owners. Pet owners must ensure that their pets do not adversely affect the living environment in high-rise, high-density Singapore. The Agri-Food and Veterinary Authority (AVA) works closely with HDB, Town Councils and Animal Welfare Groups to encourage responsible behaviour among pet owners. In May this year, AVA appointed the Cat Welfare Society (CWS) as a third-party mediator for cat-related issues nationwide. We hope that this will help bring affected parties together to achieve amicable solutions to cat-related disputes. AVA and HDB will continue to closely monitor the effectiveness of these measures, as well as to engage stakeholders on cat ownership issues. The Member asked about the Project Love Cats pilot in Chong Pang. This is a community-owned project and requires the sustained support of residents, grassroots leaders and Members of Parliament. Its success is contingent on responsible pet ownership and neighbourly conflict resolution between residents. Among other measures, CWS has been working with the Chong Pang community to sterilise the cats to minimise the risk of disamenities and to microchip them to strengthen owner accountability. These are required for the long-term success of this pilot. We can consider further expansion when the Chong Pang pilot meets these outcomes and when there is strong community support in other parts of Singapore.”
“Housing and Development Board (HDB) flats are meant for owner-occupation. To reinforce this principle, buyers of HDB resale flats are not allowed to retain ownership of local or overseas private properties. However, on a case-by-case basis, HDB will consider appeals from flat owners to retain private properties, taking into account factors, such as the owner's share in the private property, and why the private property cannot be recovered for his own use. This policy has achieved its objective of dampening demand for resale flats from buyers with no urgent housing need. Together with other cooling measures introduced since 2009, it has helped to stabilise prices in the resale market and to ensure that HDB flats remain affordable to Singaporeans.”
“The temporary occupation licence (TOL) for the construction staging ground at Marina East was first issued to the Land Transport Authority (LTA) in 2014, before activities in the area generated significant traffic impact. In 2016, arising from new TOL applications in the East Coast/Marina Bay area, a joint Traffic Impact Assessment (TIA) was carried out for the TOLs in the East Coast/Marina Bay area, as they share the same access road. The Marina East staging ground is segregated from the existing residential area by East Coast Parkway and East Coast Park. Nevertheless, LTA has adopted measures to minimise disamenities to road users in the vicinity. For example, queue bays are provided in the staging ground, and throughput has been enhanced so that heavy vehicles do not overflow onto public roads. LTA is also working closely with the developers and contractors in the area to develop localised traffic control plans to improve safety and minimise inconvenience to other road users. These include managing the schedules and routes of heavy vehicles to avoid peak hour traffic and residential areas, where possible. There are also signs to alert motorists to slow down and watch out for heavy vehicles. From a land-use perspective, the Marina East staging ground currently supports LTA's rail and road infrastructure projects. When these projects are completed, we will review whether to continue the use of this staging ground, in connection with the timing of future development plans for the area.”
“In the past five years, affordability in both the private and public housing markets has improved. Between end-2012 and end-2017, the median resident household income grew by 18.5%, whereas the prices of private residential properties, as reflected by the Urban Redevelopment Authority's (URA's) Property Price Index, decreased by 8.4%. In the public housing market, the Housing and Development Board (HDB) Resale Price Index decreased by 9.6% over the same period. Enhancements to housing grants have also helped to improve affordability for both resale and new HDB flats. Based on the 2018 International Housing Affordability Survey by Demographia, the ratio of median residential property price to median annual household income was 4.8 for Singapore, as compared to 5.7 for New York, 8.5 for London, 12.9 for Sydney and 19.4 for Hong Kong. In recent quarters, we have seen a recovery in the private property market, while the HDB resale market has remained stable. We will continue to monitor market conditions closely and will not hesitate to act when necessary to ensure a stable and sustainable property market.”
“On a nation-wide basis, the 42,280 heavy vehicle parking (HVP) spaces far exceed the 34,000 heavy vehicles registered with the Land Transport Authority. Today, around 30,000 of these HVP spaces are within one kilometre of residential estates. While heavy vehicle drivers prefer to park near where they live, other residents have raised safety and noise concerns arising from heavy vehicular traffic in residential areas. In addition, land near residential estates is needed for housing and community needs, making it difficult to continue providing heavy vehicle parks in residential estates. This is why, if and when existing public HVPs in residential estates are phased out due to development plans, they will be replaced with HVPs in industrial sites sold through the Government Land Sales programme near the area, where possible. Business owners should work out with their drivers the appropriate transport options to commute to work, especially for those who have to drive during the wee hours. There are 1,246 HVP spaces in and around Nee Soon Group Representation Constituency, of which, 845 are public heavy vehicle parking spaces. All of these are subscribed with some 370 applicants on the waitlist.”
“After the dogs are sterilised, AVA will work with its AWG partners to rehome as many dogs as possible. Those that cannot be rehomed will be released at suitable locations to live out their lives naturally. Our target is to sterilise more than 70% of the stray dogs in Singapore within five years. If we are successful, this humane approach will result in a permanent reduction in the stray dog population after five years.”
“The Agri-Food and Veterinary Authority (AVA) receives feedback on different animals, including stray dogs, from various parts of Singapore. The majority of the feedback regarding stray dogs is about dog sightings and nuisance cases like barking. Upon receiving feedback about stray dogs, AVA conducts surveillance operations to assess public health and safety risks. If AVA determines that there are threats to public health and safety, for example, when stray dogs have acted aggressively, AVA will remove the dogs. If found suitable, these dogs are offered to AVA’s Animal Welfare Group (AWG) partners for rehoming. To address the issue of stray dogs holistically, AVA also takes upstream measures. First, AVA will take enforcement action against errant pet owners who abandon their dogs. A person found guilty of pet abandonment may be fined up to $10,000 and/or jailed up to 12 months. Second, AVA implemented a licensing-at-source scheme in 2017 to enhance the traceability of dogs and further discourage abandonment. Pet businesses must now license all dogs before they are sold. They must also transfer the licences to the new owners when any dog is sold or transferred. Third, AVA works with Town Councils, Government agencies, grassroots leaders, AWGs and members of the public to raise awareness about responsible pet ownership, responsible community feeding, and to advise members of the public on what to do when they encounter stray dogs. Fourth, AVA intends to embark on a nationwide Trap-Neuter-Release-Manage (TNRM) programme later this year. This programme, in partnership with several AWGs, adopts a humane and science-based method to reduce the stray population through widespread sterilisation.”
“Mr Speaker, as the water operations are charged out through water tariffs through water borne fee, so that, indeed, covers the operating costs of operating the water system. But there are significant amounts of drainage assets and sewage assets, as part of our water system, which the Government continues to fund through grants to PUB. In fact, these details are in PUB's accounts. You can see very clearly what is the amount that is charged out to consumers and are taken in as revenue on PUB's books, and the amount that is taken as grants from the Government.”
“Mr Speaker, in fact, we do a combination of both. For the water treatment plants, water works, water operations, indeed, PUB charges consumers, rightfully so, and then recovers the costs in order to continue to finance future investments. But there is another part of infrastructure which is not charged directly to consumers, and that is our drainage systems, sewage systems, which are an essential part of our water system. And PUB continues to receive Government grants in order to finance that part of the water system. So, when you look at the water system today, there is a component which is charged out to consumers, PUB recovers the costs, the revenues, and then uses that to finance part of the water system. But there is also a significant part of the water system which is already financed by the Government through the taxpayers.”
“Mr Speaker, Sir, I think if you were to look at the figures, specifically, if you were to look at the Capital Reserve in PUB's books, indeed, they have grown from $3 billion to $5.3 billion over the years. And as the footnote explains, these are accumulated surpluses over the years that PUB has been able to earn. But none of these surpluses are left in cash. In fact, over that same period of time, a large part of the accumulated surpluses has been used to invest in water infrastructure, and that is why the PPE has grown correspondingly from $3.9 billion to $7.1 billion. That is the essence of what I am trying to say. The word "reserves" is misleading. We think of reserves as cash, but Capital Reserve happens to be an accounting term. It means that the funds were used to invest in PPE, and there are some technicalities about the specific assets, the date of the assets, but those are technical points because the main thrust of what I am trying to say is that there is no surplus cash lying around in PUB's books for PUB's disposal. All of it is being invested in water infrastructure already and we will need more of that for our future water supply as well.”
“Mr Speaker, Sir, for the period from financial year (FY) 2017 to FY2021, PUB will be investing another $4 billion worth of infrastructure in the water domain. In fact, I mentioned this figure during the COS debate as well. These are investments for the development of the new Tuas Reclamation Plant, the renewal of Chestnut Avenue and Choa Chu Kang Waterworks and other pipeline projects. The investments will be financed through a combination of either accumulated surpluses – where there are – and borrowings, because these accumulated surpluses from previous years, as I have mentioned, are not sufficient to finance all of our infrastructure needs. So, PUB will have to borrow in order to finance these future investments. That is the investment quantum that we are talking about from FY2017 to FY2021. Going beyond that, there are also other major projects that are in the pipeline, including, for example, Phase 2 of the Deep Tunnel Sewerage System, as well as the redevelopment of Kranji Water Reclamation Plant and the expansion of Changi Water Reclamation Plant. These are in the pipeline, and the specific quantum and details will be announced at an appropriate juncture. The bottom line is that we still need to make investments in our water infrastructure and these are very important investments to ensure that we have a secure and resilient water supply, both today and into the future.”
“Mr Speaker, as I mentioned, should that scenario come to pass, we may have to adjust some of the plans. It may include the staging, the timing. It would be difficult to speculate now or to give details at this stage. But we are monitoring the situation closely and we will make adjustments, if need be.”
“But the bottom line is that we have an exciting transformation plan for the whole area, and we will proceed with the implementation of these plans when ready.”
“Mr Speaker, the development of Jurong Lake District (JLD) is part of our broader effort to develop urban centres outside the downtown area, so as to bring jobs, amenities and recreational options closer to homes. We started this endeavour to build urban centres outside the downtown area with the building of our first regional centre at Tampines in 1992, and then we started the work to transform Jurong in 2008. The plans for Jurong Lake District were developed well before Malaysia proposed the HSR Project. It was only in 2015, after further study of the HSR proposal, that we decided to locate the Singapore terminus of the HSR in Jurong. The transformation plans for Jurong Lake District include the following components. (a) The development of a commercial precinct and the injection of up to 20,000 new homes; (b) The upgrading of Jurong Lake Gardens, including the Chinese and Japanese Gardens, with a new Science Centre integrated within the Gardens; and (c) The development of a major transport hub connecting the existing North-South and East-West Mass Rapid Transit (MRT) Lines, as well as the upcoming Jurong Region and Cross Island Lines. These are some of the key features of our transformation plans. These plans are still relevant today. The land parcels that the Government has acquired are needed to realise these plans. The Jurong Country Club site will provide for new mixed-use developments and community facilities. The Raffles Country Club (RCC) site is needed for the Cross Island Line's (CRL's) western depot and other transport-related uses. Regardless of the outcome of the HSR Project, the overall impetus and vision for Jurong Lake District have not changed. Some details may need to be adjusted along the way, as circumstances change.”
“Mr Speaker, again, I think Mr Singh is trying to link things that are clearly of no relationship at all. The NIRC is a separate matter. It is the largest source of revenue for the funding of our overall Budget, and so, that will be seen in the context of funding of our overall budgetary needs. As I mentioned earlier, with regard to infrastructure projects like HSR, we are financing them separately through borrowing. It is the right thing to do because these infrastructure projects are long term in nature, and borrowing will help us to smoothen the expenditure of these projects over the longer period to better match the benefits of the project, which will also be for a long period of time. I would also say this, that even if the HSR Project were to be terminated, even if that were to happen, the trend of our overall expenditures rising will continue and, in particular, the trend of our recurrent expenditure rising will continue. And I have explained why this will happen, because, primarily, in the case of healthcare, our population is ageing and we will be having to spend more on healthcare.”
“We take a different approach to financing lumpy investments in infrastructure. First, where possible, we will save ahead and set aside funding for such investments through initiatives like the Changi Airport Development Fund and the Rail Infrastructure Fund. Second, we will finance infrastructure through borrowing by Statutory Boards and Government-owned companies. This will apply to larger investments that can generate economic benefits over many years, like the Changi Airport Terminal 5, the HSR and the JB-Singapore Rapid Transit System (RTS) Link. Therefore, the underlying rationale for the GST rate increase is not affected by the outcome of the HSR Project. Our population will continue to age. More Singaporeans will need support to care for their loved ones. Ultimately, the Government will require more recurrent sources of revenue to support these needs. Both Assoc Prof Daniel Goh and Mr Pritam Singh asked about the specific expenditure impact of the HSR Project. As Minister Khaw said earlier, the Government's practice is not to reveal the costs of projects until tender processes are over, as doing so could affect the behaviour and pricing strategy of bidders. And as he had indicated earlier, pending confirmation from the Malaysian government about its position on the project, Singapore is continuing to fulfill our obligations under the HSR agreement. So, it will not be appropriate for me to highlight the figures at this time. Mr Speaker, the Government's fiscal approach is sound and sustainable for the long term. We will continue to manage our public finances prudently while ensuring we look after the needs of our citizens and our economy in a responsible manner.”
“Sir, Mr Pritam Singh and Assoc Prof Daniel Goh asked about the financial implications should the High Speed Rail (HSR) Project be cancelled or suspended. I will iterate and reiterate at the outset that, as stated by the Minister for Foreign Affairs and the Minister for Transport, Singapore has yet to receive an official response from the Malaysian government on its position on the project. Unless the project is terminated, Singapore has to meet our obligations under the legally binding HSR Bilateral Agreement (BA) and will continue to incur costs in this regard. In the event that Malaysia causes the project to be terminated, Singapore will exercise our rights under the BA and international law, including with respect to compensation for costs. Mr Pritam Singh has tried to link the prospect of the HSR project being cancelled to the Government announcement to raise the Goods and Services Tax (GST). But these are two separate matters. The increase in GST was never meant to finance lumpy investments in infrastructure in the first place. We have already made this clear in the Budget Statement. So, let me reiterate the key points. The main drivers for rising Government expenditure in recent years, and going forward into the future, are healthcare, security and social spending. Healthcare, in particular, is expected to rise sharply over the coming years due to our rapidly ageing population. These are broad-based, structural increases in recurrent spending. So, we have to raise recurrent revenues, of which the planned GST increase is one component, to pay for these ongoing needs year after year. This is the responsible way to ensure that every generation pays for its own spending in a sustainable manner.”
“The Housing and Development Board (HDB) currently manages about 60,600 subsidised rental flats under three schemes: (a) The Public Rental Scheme, for Singapore Citizen (SC) households which have no other housing options or family support; (b) Interim Rental Housing, for SC families which are in financial hardship and require urgent temporary accommodation; and (c) The Parenthood Provisional Housing Scheme (PPHS), mainly for first-timer families which are awaiting the completion of their new flats. HDB does not rent out non-subsidised flats. The distribution of subsidised rental flats by flat type is in Table 1, and the details requested about the households living in these flats are in Tables 2 to 4.”
“Mr Speaker, Sir, I have to look to my colleagues from MOT. Because as I said earlier, the reviews are being done in parallel. I think the tax treatment must be consistent with also the regulatory treatment. I believe MOT and LTA have announced that they are doing this review on the regulations of private hire car services, and we at the Ministry of Finance (MOF) are also looking at the tax treatment. And both are moving in parallel. Once the reviews are completed, we will be able to announce on the MOT side, the regulations; and on the MOF side, the tax treatment.”
“Mr Speaker, Sir, we are reviewing this holistically and it has also to be done in conjunction with the Ministry of Transport's (MOT's) ongoing review of the regulations on such private hire car services. So, that is happening now. MOT and Land Transport Authority (LTA) are reviewing the regulations for this group of companies, how they should be regulated vis-a-vis taxi companies. When that is done and clearer, I think the tax treatment can also be adjusted accordingly.”
“Mr Speaker, Sir, to meet the needs of Singaporeans, such as housing, transport, healthcare or education, it is not uncommon for multiple development projects to be taking place across our island at any one time. When assessing development projects before construction is allowed to proceed, agencies take into account the impact of construction arising from that particular project on the people, the existing buildings and infrastructure, and the environment in the surrounding area. In addition, agencies consider the impact of other construction works taking place at the same time in the area. To minimise potential noise disamenities from construction works, the National Environment Agency imposes noise limits on construction sites under the Environmental Protection and Management Act. Mitigating measures, such as shielding noise sources, using quieter equipment and cleaner construction methods, monitoring vibration levels, and restricting the duration of noisy activities, are implemented, where necessary. For large-scale projects, the Land Transport Authority also requires developers to conduct a Transport Impact Assessment to identify the potential impact of construction on traffic flows and propose mitigation measures, where necessary. Enforcement action will be taken against developers who violate regulatory requirements, and a "stop work order" may be imposed on repeat offenders.”
“Mr Deputy Speaker, Sir, I have learnt in Government to say, "Never say never." As I mentioned earlier, we are prepared to listen to different views; we are prepared to listen to different proposals; and when these proposals come, we will always be prepared to review our policies. But my point on the NIRC rules is this: that this was debated at length only not too long ago. We went through this discussion in this House, debated thoroughly the points and we settled on a framework. A framework that we think best meets the needs of both current and future generations and balances that fairly. And we decided to enshrine these rules in the Constitution. Let us not be so quick to rush the minute we need money and say, "Can we tweak the rules again?" So, that is on the first point. On the second point, would cost of Government impose a drag on the economy? Yes, for sure it will. If the Government Budget – which means the revenues that we need to collect to meet the Budget – balloons to 25% of GDP, 30% of GDP, 40% of GDP like in some European countries, for sure it will be a drag on the economy. So, what I would very much like to hear from Members of this House is: if you think this is a concern, please let us have proposals, not to spend more, which we keep hearing, but to spend less for a change. 6.16 pm”
“So, there is a risk that long-term asset returns may be lower in the future. So, if you look at this overall picture, spending beyond the term of Government going up, inexorably and clearly going to happen, revenue uncertain and, if anything, there are more downside risks than before, then I think you would appreciate that our fiscal position is, in fact, not that strong and we need to take steps to further strengthen it.”
“Mr Deputy Speaker, when Mr Pritam Singh referred to the surpluses this year, I think we have made it very clear during the Budget and in the Budget Debate that these were exceptional items, one-off items, and should not be extrapolated. They were specific to certain contributions from MAS which we have explained. Through the rest of the term, I think the Minister for Finance had made clear during the Budget Debate, and I would repeat, that we believe that we have just enough resources to cover Government needs for this term of Government. But beyond this term of Government, we know that expenditures will continue to rise. There is no doubt that healthcare spending will rise; there is no doubt about that. It is indisputable because the population is ageing; and it will rise very sharply. So, on healthcare alone, the increase is significant and we have to cater for this. On the revenue side, if you look at our revenues, there is a part of them that is linked to income and taxation, largely to the economy. But we know that the economy is not going to grow in the same way that it used to in the past. Growth is moderating and so revenues from these different taxation models will moderate too. Then, we have NIRC. This is already the single largest item in our revenue source today. NIRC, as a percentage of GDP, will continue to provide us a steady stream of revenues for the future, but we do not expect that to increase as a percentage of GDP. It will just provide a steady constant stream of revenue as a percentage of GDP. We do not expect that to go up. In fact, there is a risk that it may even come down. Why? Because if you look at the trends in the asset markets today, interest rates are at historically low levels. If you look at equity valuations, they are highly elevated.”
“That is the work we have to do together over the next 50 years. And then, when we celebrate SG100, we can look forward to a greener, smarter and even more beautiful city, one that all of us are proud to call home. [Applause.]”
“And, indeed, we are now at a higher point on the hill. So, we need all hands on deck to keep pushing the boulder together and to reach even higher peaks of excellence. That does not mean that you have to agree with every Government policy; if you have a different idea or proposal, we stand ready to listen and to review our policies. But please do not disagree just for the sake of doing so. I recall a speech that Mr Rajaratnam once made where he said, "It’s easy to win attention by disagreeing with the Government. If the Government says ‘white’ and you advocate ‘black’, you will be hailed at the next cocktail reception as an original and bold thinker." But in the end, what is important is that we all come together with the genuine interest to solve the real and vital problems affecting our nation. The academic I mentioned earlier on the CPF matter, Prof Walter Theseira, when he clarified his remarks on the CPF issue, also wrote on his Facebook page: “It’s easy to make fun of policymakers and it’s also easy to critique policy. Finding workable solutions that promote the public interest is a lot harder but, more than ever, we need to work together to help improve policy in Singapore.” I fully agree with him. This endeavour of building our future Singapore cannot be done by the Government alone; it must be a collective effort involving all Singaporeans. For the MND work, there are many areas where we will want to invite Singaporeans to share their views and perspectives, from major projects like the Greater Southern Waterfront and the Rail Corridor, to the design of new HDB towns and right down to specific improvements that can be made in your estate and neighbourhood. We want to build a city that reflects the aspirations, the values and the spirit of our people.”
“What does it say about us and our mindsets and attitude, if the minute we need the money, the first thing we do is to relax the rules? Surely, that will be ill-disciplined, imprudent and unwise. This goes back to the issue of responsible governance. Look at the challenges that other First World democracies face – their politics have become more fractured, chaotic and unpredictable. One common thread across many of these countries is that they are in fiscal difficulties. Why? Because the politicians pander to the electorate; they spend more than they collect in taxes and run up unfunded obligations and debt. Ultimately, the ones who suffer are the citizens, especially the most vulnerable. Singapore is in a different position today. Our fiscal position is strong, but if we succumb to temptation; change the rules, chip away at our reserves, we run the very real risk of compromising the long-term health of our nation. That is not the Singaporean way. The Singaporean way is to look ahead and prepare for the future responsibly. We level with our people, so, everyone knows what to expect and what hard choices we need to take. We work to serve the interests of all Singaporeans, not just for one or two electoral cycles, but over the long term. That is what we have been doing and will continue to do. Earlier, I likened the city to a living organism, where we either adapt or perish. Let me use another analogy. In some ways, our next phase of development is like pushing a boulder uphill. It requires constant effort to keep going up. The moment we relax and let go, the boulder starts moving downhill, slowly at first and then at uncontrollable speeds and then it will be too late. The higher up the hill, the greater the tendency for the boulder to roll down.”
“Concurrently, we are also studying how best to safeguard Singapore’s long-term coastal protection needs and we are undertaking detailed modelling and engineering studies for this purpose so that we can identify and recommend appropriate protection strategies. They may include use of dikes, pumps or other technologies, but the most important thing is to be prepared. So, this is just one example of how we are building resilience into our system and there are many more things that we will need to do to be a more resilient city. The urban transformation plans I have shared are significant in scale and require considerable fiscal resources. Mr Pritam Singh said earlier in the Debate that the current Government has more financial resources than previous generations of PAP leaders. But he forgot to mention that our fiscal commitments and spending are also at their highest ever levels. Singaporeans today are being provided with more services and support than before. For now, we are just able to meet all of our spending needs with current resources. But without additional revenues, how are we to meet the growing healthcare needs, as well as the many other proposals that various people, including the Workers' Party, have been asking for? And both Mr Pritam Singh and Mr Leon Perera have reiterated the call to change the rules on the use of reserves so that we can draw more from the reserves. Mr Leon Perera said that this was not just a technical issue, but a philosophical issue and I agree with him. But the rules were discussed at length, debated in this House thoroughly, so that we can find the right balance between present and future generations and we enshrine the rules in our Constitution. And this was done not too long ago.”
“We recognise that there may be over-borrowing in a very low interest rate environment and that sharp price changes that run ahead of fundamentals can be destabilising to the broader economy. So, we have put in place various measures over the years. We will continue to monitor market trends closely and make use of various policy levers to ensure a stable and sustainable property market. Mr Deputy Speaker, Sir, Singapore is a nation of homeowners. So, it is understandable why housing remains a top concern for all our people. My assurance is that the Government will continue to provide affordable and quality homes for all Singaporeans – both now and into the future. We will make sure that, in every town, we have a range of housing and amenities for all ages; more shared spaces for all to enjoy; and a place where every Singaporean feels that they belong. Besides being more innovative and inclusive, we also have to incorporate resilience in our urban development. What will happen to the world in the next 50 years? No one can predict. But we can be sure there will always be crises and threats and even black swan events. So, we have to build resilience into our city and urban systems. One big unknown is whether the planet can continue to sustain continued economic activities. If the world does not do enough to tackle climate change, Singapore will be at risk of coastal inundation due to sea level rises. So, we need to start making preparations now to strengthen Singapore’s resilience against climate change. One specific project we are doing is the polder development in Pulau Tekong. The dike system in the polder is designed to cater for sea-level rise and the dike can be raised and upgraded more easily compared to traditional reclamation.”
“Now, the reverse has happened and there are people overly anxious about how much their older flats can fetch in the resale market. So, my advice to Singaporeans is this: do not buy or sell based on speculative information. Look at the facts and, if you are in the market for a home, do your homework carefully and choose something that fits your needs. We will make the resale market work better for potential buyers and sellers. In fact, I was reminded of this in a recent MPS. One resident came to me to seek help for more time to sell their flat because they could not get the price that they were looking for. Right after that, another resident came and said, "I need a flat urgently, please give me a direct allocation of a flat from HDB". I told her, "I can't do that, you got to ballot, but if you want your flat so urgently, why don't you go to the resale market?" And she immediately said, "Resale market too expensive." So, on the one hand, sellers find it hard to sell; on the other hand, buyers are saying that prices are still too high. So, we need to find better ways to match buyers and sellers in the HDB market. We started with the HDB Resale Portal, which has simplified and speeded up the resale transaction process and we will continue to do more. We will provide more information on the available flats in the market – be it new flats or resale flats – so that we can help buyers and sellers transact more smoothly and we can help Singaporeans make more informed housing decisions that best suit their needs. Besides the public housing market, we are also watching the private housing market. The property market, like any other asset market, will go through ups and downs. The Government cannot control or fix prices. But neither do we take a completely hands-off approach.”
“So, the transacted price depends not just on length of remaining lease, clearly, but it also depends on many other attributes – factors like location, the storey height, the condition of the flat, these are all very relevant. Whatever the price you get from the sale of a flat today, the sales proceeds would be more than sufficient to purchase a smaller flat for retirement, for those who are interested in right-sizing. For example, if you sell a flat now, a 4- or 5-room, you can purchase a 2-room flexi flat from HDB with a 40-year lease for around $100,000; or a 3-room resale flat for around $250,000, depending on location. And people are doing that. I give you an actual example that happened recently. Mr Abdul Aziz Haji Hamdan, who is 67 years old, originally owned a 3-room flat in Marsiling with around 60 years of lease remaining. He decided to right-size to a Studio Apartment in Kampung Admiralty with a 30-year lease. He sold his 3-room flat for $250,000, purchased the Studio Apartment for just over $100,000. So, he has more than $140,000 in cash and CPF proceeds to supplement his retirement savings. For those who prefer to stay in the same place, there is also the Lease Buyback Scheme, where you can sell part of the remaining lease to HDB; or the option of renting out a bedroom. So, the monetisation schemes we have are in place and they are working; and we will continue to review and enhance these schemes and help our elderly unlock the value of their flats for retirement. Buying and selling a property can be a complex undertaking and it is easy to get carried away by market sentiments. Just not too long ago, there were people speculating in older HDB flats hoping to get SERS benefits and not explicitly saying that they were doing that.”