Lim Hng Kiang
Singapore
“The company has made commitments to recycle the ash, and as for renewable energy, the gasification project is not an energy project, it is not a generation company (genco). It is to produce hydrogen and carbon monoxide or, essentially, carbon. Because as feedstock to the petrochemical sector, you need more C and more H2.”
“The Government will continue to recover the IIA awarded if the company fails any conditions or breaches the legislative amendments. I would like to highlight that there are no errant cases in the last five years for IIA and the current amendments are, therefore, not reactionary in nature, but are being made for legislative clarity.”
“In addition, the IIA scheme will be extended till 31 December 2022. Clauses 10 to 13 give legislative effect to this change. The remaining legislative changes arising from our periodic review of the income tax system are either administrative or technical in nature.”
“Data on household and individual savings rates by income groups are not available. However, data on the aggregate level of household financial assets can be obtained from the Household Sector balance sheet compiled by the Department of Statistics.”
“The aggregate level of financial assets owned by Singapore’s household sector6 in each of the past five years is provided in Table 1 below. Data on the amount of financial assets owned by households and individuals in the different income percentiles is not available.”
“The Second Review of the Comprehensive Economic Cooperation Agreement (Second CECA Review) is ongoing. The review is taking some time as both countries have our respective interests to work through, such as in the area of labour mobility. Our agencies regularly engage Indian counterparts to work through issues collaboratively.”
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“If we have 4,000 lots and there are another 2,500 on the waiting list, obviously, the price is too low for the lots within 3 km of the housing estates. At the same time, there are 6,000 lots outside the 3 km radius which are under-utilised. So we have to adjust the prices of the URA lots nearer town and we hope the private sector will lower the charges of the lots outside the 3 km radius. Then there will be a better matching of supply and demand.”
“Mr Speaker, Sir, let me explain the situation. First, there is a big difference in season parking charges for heavy vehicle parks. The HDB and URA charge between $60 and $120 per month. In comparison, the charges for equivalent private heavy vehicle parks are between $160 and $180 per month. Second, there is also a big mismatch in the supply and demand. There is currently very strong demand for heavy vehicle lots within 3 km of housing estates. URA manages some 4,300 of such lots within 3 km of housing estates, but has a waiting list of nearly 2,500 applicants. In contrast, there are some 6,000 heavy vehicle lots outside the 3 km radius operated by the private sector which are not taken up. So there is a need to make some adjustments. With effect from 1st July 1998, the season parking charges for public heavy vehicle parks within 3 km of housing estates will be revised to between $65 and $130, an increase of only between $5 and $10. This is the first revision in nine years. This revision is necessary to meet these two mismatches, as I have explained earlier. Mr Tay also asked whether the URA can lower the parking charges for under-utilised URA heavy vehicle parking lots outside the 3 km radius. There is, in fact, no under-utilisation of URA heavy vehicle lots outside the 3 km radius. Out of the 6,000 heavy vehicle lots outside this radius that are not taken up, only 77 are URA lots. So URA pricing is at the right level.”
“ECs are built by private developers and HDB is very happy to build flats for those on its queue. SEASON PARKING CHARGES FOR URA/HDB HEAVY VEHICLE PARKING LOTS (Deferment of implementation of increased charges) 4. Mr Tay Beng Chuan asked the Minister for National Development whether his Ministry will consider (i) deferring the implementation of the increased season parking charges for Urban Redevelopment Authority (URA)/Housing and Development Board heavy vehicles parking lots located within 3 km of public housing estates in order to relieve the cost pressure and hardships of our businesses during this trying financial turmoil; and (ii) lowering the parking charges for the under-utilised URA heavy vehicle parking lots located outside of 3 km of housing estates to improve the poor demand for such parking lots.”
“As at 31st May 1998, there were 12,600 applicants on the Registration For Flat (RFS) queue for Executive flats. HDB stopped receiving applications for Executive flats with effect from 21st August 1995 when the Executive Condominium (EC) Scheme was introduced. Based on the current Building Programme, HDB will take about two years to clear the applicants on the Executive flat queue. For the new Executive flats offered for sale in the second quarter of 1998, the average market subsidy (ie, the difference between the assessed market value and the HDB selling prices) is about $65,000 per unit. Based on their registration numbers, applicants on the Executive Flat queue were referred to buy EC in the various EC projects when they were launched. Other applicants on the HDB queue can also buy EC flats under the open category if they satisfy the eligibility conditions. All applicants on the Executive Flat queue have been given the opportunity to switch to ECs. Based on HDB records, about 2,200 applicants on the Executive Flat queue have booked ECs. Mr Tay has suggested that the Government consider giving incentives to encourage applicants to buy private condominiums. Mr Speaker, Sir, private condominiums, Executive Condominiums and HDB Executive flats are different products catering to different groups of home purchasers. It is really up to the purchaser to weigh the terms and conditions and the selling prices of the three housing options to make their choices. There is no need for the Government to intervene or provide additional incentives to encourage applicants to buy private apartments or condominiums. There is also no need to reduce HDB's burden in meeting the public housing demand.”
“Under the Home Ownership Scheme, HDB flats are sold for long term owner-occupation by the eligible purchasers and their families. For this reason, new HDB flats are sold with a 99-year lease so that not only the purchasers but the second and subsequent generations of the same household can continue to live in them. The Government will ensure that public housing remains affordable to the majority of Singaporean families. There is therefore no need to sell HDB flats with a shorter lease to keep public housing within reach of Singaporeans. The privatisation of HUDC housing estates is meant to meet the aspirations of purchasers for self-management of their estates. After privatisation, the maintenance of the housing estates would be funded entirely by the purchasers' payments of maintenance charges and contributions to the sinking fund. As HUDC flats are generally developed in well-defined boundaries, it is also relatively easier to privatise them. On the other hand, HDB flats are in public housing estates with shared community facilities and amenities so that the running costs on conservancy and maintenance of the common areas are kept within reasonable limits. As HDB estates are made up of a combination of different flat-types, with less well-defined boundaries, there is no immediate plan to privatise any HDB estate. SEA SPORTS CENTRE 8. Mr R. Ravindran asked the Minister for Community Development whether there are any plans to build a sea sports centre by the People's Association along the west coast of Singapore.”
“I have on a number of occasions spoken on the need for the construction industry to restructure. The industry cannot continue with its current construction practices which are labour intensive and unproductive. The current economic slowdown offers a good opportunity for change. My Ministry is presently carrying out a review of the various practices in the industry. One of its main tasks is to identify the pre-requisites for the introduction of legislation on minimum buildability scores. The readiness of the industry for buildable design will be taken into consideration. The review is expected to be completed around the end of this year. NOISE POLLUTION FROM INCESSANT HONKING 32. Mr Hawazi Daipi asked the Minister for Home Affairs how the Traffic Police will overcome the problem of noise pollution from incessant honking early in the morning by buses and lorries at the Singapore Immigration checkpoint in Woodlands.”
“When they cannot judge properly, they will end up either suddenly braking or beating the amber and red lights. Both these actions will endanger road safety. The current system of using a 3-5 second amber period before traffic lights turn from green to red, is an international practice, which has served us well and need not be modified. LEGISLATION TO INCORPORATE "BUILDABILITY" 30. Mr Chuang Shaw Peng asked the Minister for National Development when he plans to introduce legislation to incorporate "buildability" into the construction industry.”
“Under the current planning guidelines, residents can work from private homes, as long as their activities do not induce additional vehicular or pedestrian traffic, or cause noise, smoke or dust nuisances. Planning permission is also not required. However, to safeguard the amenity of the residential neighbourhood, persons outside the household are not allowed to work within the residence. The above guidelines also apply to HDB flats. Although under the HDB lease/tenancy agreement, residents are not allowed to use their flats for any purpose other than as residential flats, HDB does exercise some degree of flexibility. It allows residents to install commercial communication lines in HDB flats such as facsimile, telex or telephone. Residents are also allowed to carry out small scale home-based activities such as tailoring service, assembling plastic flowers, etc. These activities must not be a source of nuisance to the neighbours and the residential character of the HDB flats must not be compromised. DISPLAY TIMERS AT TRAFFIC LIGHTS 29. Dr Teo Ho Pin asked the Minister for Communications whether he will consider installing display timers at traffic lights so that motorists will be able to know the time left before the green light turns amber, and adjust their speed accordingly when approaching traffic light junctions. Mr Mah Bow Tan: LTA is not in favour of installing display timers for traffic lights for the time being. If display timers are provided at traffic lights to let motorists know of the remaining time before the green light turns to amber, some motorists may find it useful to slow down as they approach the traffic light junction. But, there could be others who will be tempted to speed up to catch the green.”
“Some time last month, I asked HDB to review the $8,000 monthly income ceiling for the purchase of HDB flats. HDB has completed its review, and the findings are that the monthly incomes of some 90 percent of Singaporean households in the age band of 25 to 39 years fall below this income ceiling. HDB's study also shows that 94% of new applicants who applied for HDB flats in 1997 have household incomes below $6,000 a month. The current income ceiling of $8,000 is therefore still sufficient to meet the needs of the younger and first-timer families. There is no immediate need to raise the income ceiling for the purchase of HDB flats. However, HDB will exercise some flexibility to allow those with household income slightly above the income ceilings to apply for new HDB flats. Those with incomes exceeding $8,000 per month are also not unduly disadvantaged by the current HDB income ceiling. They can buy resale HDB flats as these flats do not have any income ceiling. They can also buy Executive Condominiums, which have a higher monthly income ceiling of $10,000, or a private condominium or apartment according to their own preferences and financial capabilities. For the first-timers purchasing ECs or resale HDB flats, they are also eligible for the $40,000 CPF Housing Grant. GRANT FROM SKILLS DEVELOPMENT FUND 21. Mr Ang Mong Seng asked the Minister for Manpower whether the 70% grant from the Skills Development Fund (SDF) for worker training could be directly paid by SDF first instead of by the employers, thus alleviating the financial strain on employers due to the present economic slowdown.”
“Mr Speaker, Sir, the Government has reviewed the anti-speculation measures in the light of the present state of the property market. The key anti-speculation measures are still relevant in today's context and will be retained. Some changes will be announced by the Minister for Finance as part of the overall off-Budget package for the economy. MND will be issuing a press release on the details. WEAK JAPANESE YEN (Impact on Singapore economy) 7. Mr Ang Mong Seng asked the Minister for Finance what impact the weakening of the Japanese yen will have on the Singapore economy as well as on the ASEAN countries.”
“Mdm Claire Chiang See Ngoh asked the Minister for Community Development whether he will give the following information: (i) the number and profile of callers using the Community Development Council's National Helpline; (ii) the type of problems presented; and (iii) the kind of help extended to these callers.”
“The vacant land bounded by Blocks 401 to 403 at Serangoon Avenue 1 is a site reserved for a multi-storey carpark. As currently there are sufficient parking lots for the residents in the area, HDB has no plan to build the multi-storey carpark yet. HDB has no objection to the site being used temporarily by the Town Council as a precinct park for the residents for the time being. A Temporary Occupation Licence could be issued to the grassroots organisation, such as the Constituency Citizens' Consultative Committee, for the purpose. ILLEGAL PARKING 9. Mr Goh Choon Kang asked the Minister for National Development if the Housing and Development Board will take more effective action against the illegal parking of foreign-registered motorcycles in HDB housing estates. Mr Lim Hng Kiang: HDB has been taking enforcement action against foreigners who park their vehicles (including motorcycles) illegally in HDB carparks. Since November 1994, HDB has been clamping foreign-registered vehicles with outstanding parking offences and found contravening parking rules. This measure has proven to be effective. Another effective measure is the checking of foreign-registered vehicles at Tuas and Woodlands Checkpoints. Those found with outstanding parking offence notices would be stopped and advised to settle their parking fines. HDB has also stepped up enforcement in areas prone to illegal parking of foreign-registered motorcycles in HDB housing estates. COMMUNITY DEVELOPMENT COUNCIL'S NATIONAL HELPLINE 10.”
“Mr Chuang Shaw Peng asked the Minister for Communications whether P2P Consortium has misrepresented in its tender bid and, if so, whether its members will be debarred from future government tenders for a fixed period and whether there will be a re-tender exercise. 51. Mr Sin Boon Ann asked the Minister for Communications if he will give an elaboration on the circumstances relating to, and an update of the inquiry into, the withdrawal of the mobile phone licence awarded to P2P Communications Pte Ltd on the ground that it is not able to form the consortium along the shareholding structure proposed in the tender submission and whether steps have been or will be taken to strengthen the tender procedures in this regard.”
“The National Arts Council regularly supports Chinese performing and literary arts. The National Heritage Board's Asian Civilisations Museum explores and presents the heritage of Singaporeans in the context of their ancestral cultures. The National Library Board has signed co-operation agreements with the National Library of China and the Shanghai Library, which will allow Singaporeans to access the catalogues of these two libraries. The NLB has also embarked upon an expansion programme to expand and improve its Chinese collection. These efforts help to ensure that we have a sizeable group of Singaporeans with a good command of Chinese and a deep knowledge of Chinese culture. But it must be emphasised that many of these measures are long term in nature and the results can only be seen after many years. For example, our promotion of Chinese Internet will only bear fruit in the next century. Singapore is a multi-racial and multi-cultural society. Mr Tay Beng Chuan is absolutely right that we must be sensitive in the way we promote our ethnic cultures. The key to this is in forging a common Singapore culture and consciousness which bind Singaporeans of all ethnic and religious groups together. With each generation and with each crisis, we should pull closer together. Much of MITA's effort concentrates on building up this sense of one Singapore. The coming National Education Exhibition in July will emphasize the awakening of our national consciousness and our common struggle to create a separate and independent Singapore identity. P2P CONSORTIUM 50.”
“A lessee who has collected the keys to his new HDB flat is given 6 months to sell his existing HDB flat in the open market. Generally, this is a sufficient period for the lessee to sell his existing flat. However, if the lessee is unable to sell his existing flat within the 6 months due to justifiable reasons, HDB will consider extending the six-month period on a case-by-case basis. PLAN TO FOSTER STRONG CHINESE CULTURAL ELITE 49. Mr Tay Beng Chuan asked the Minister for Information and the Arts (a) whether the Government has set up any target and concrete plan of action to foster a strong Chinese cultural elite; and (b) in what way can the Government encourage and work with the ethnic Chinese community to achieve the target without causing any undesirable ethnic sensitivity in our multi-racial and multi-cultural society. BG George Yong-Boon Yeo: The Government's plan to encourage the use of Chinese and help foster a Chinese cultural elite was outlined by PM in his 1997 National Day Rally speech and DPM Lee in his speech at last year's launch of the Speak Mandarin Campaign. The Ministry of Education is also currently undertaking a review to improve upon the effectiveness of teaching of Chinese Language in schools. Some steps being considered include the strengthening of our SAP schools, offering more Chinese scholarships, and improving teaching materials and techniques. MITA will continue its efforts to make Chinese culture relevant and interesting to a younger generation of Chinese Singaporeans. We do this through the promotion of Chinese culture, heritage and Mandarin. MITA and its statutory boards work closely with Chinese civic organisations in many activities. The Speak Mandarin Campaign is now in its 20th year and has achieved some success.”
“Through this scheme, the married child can exchange his existing flat with another lessee whose flat is close to that belonging to the former's parents, so that the married child could live close to his parents. (v) Studio Apartments In March 1998, the first batch of Studio Apartments for elderly was launched in the older estates as an alternative form of housing for senior citizens. HDB is mindful of maintaining the family ties between the elderly lessees who wish to live apart from their children but yet be near to them. Thus, priority allocation of Studio Apartments is given to elderly lessees whose children are taking over the elderly lessee's existing flats that are located in the same electoral division as the Studio Apartments. With this, the elderly lessees are able to continue living in the same housing estate which they are familiar with, and at the same time be in close proximity with their children. HDB will keep an open mind to new proposals that aim to encour age young couples to buy a flat to stay with or near their parents. LONGER PERIOD TO COMPLETE SALE OF HDB FLATS 48. Mr Yeo Guat Kwang asked the Minister for National Development whether he will consider allowing Housing and Development Board upgraders to have longer than the current 6-month period to complete the sale of their old flats in view of the weak sentiments in the property market.”
“In addition, HDB also has the following schemes to encourage young couples to stay near or together with their parents: (i) Sale of Adjoining Flat Scheme As the majority of the smaller HDB flats are located in the older HDB estates where a lot of elderly parents are living in, HDB implemented the Sale of Adjoining Flat Scheme in 1993 to encourage young couples to live with their parents. Under this scheme, lessees of 3-room and smaller flats are allowed to buy the adjoining flat from the open market and combine both into a larger flat to accommodate the extended family living together. (ii) CPF Housing Grant Scheme The CPF Housing Grant Scheme implemented in 1994 provides a housing grant for first-timer couples who are buying resale HDB flats. If the first-timer couple buys a resale HDB flat in the same estate or within 2 km from their parents' flat, they are eligible for a higher grant of $50,000. Similarly, a multi-tier family buying a resale flat to stay together is also eligible for the $50,000 CPF housing grant. (iii)Lessees/Tenants Affected By SERS/Relocation Scheme To support an extended family living together, affected lessees or tenants under the Selective En-Bloc Redevelopment Scheme (SERS) or Relocation Scheme are allowed to include their children as joint applicants in their application for new flats. (iv) Mutual Exchange of Flats Scheme The Mutual Exchange of Flats Scheme introduced in 1979 provides another avenue for married children and their parents to stay near each other. This scheme allows lessees of HDB flats who have occupied their flats for at least a year to exchange their flats in the same or different estates.”
“Lessees need to pay their share of the upgrading cost only after the upgrading works are completed. They may pay by cash or from their CPF savings. Their children who are not staying with them can use cash to pay the upgrading cost on behalf of their parents. The CPF Board only allows lessees of the flat to use their CPF savings to pay for the upgrading cost. To be able to use their children's CPF savings to pay the upgrading cost, parents must include their children as co-lessees of the flat. However, this is subject to the children being able to satisfy all the eligibility criteria to own a HDB flat. The CPF Board allows children to top up their parents' Retirem ent Account if they and their parents qualify under the existing "CPF Topping-up the Minimum Sum Scheme". Their parents can then use part or all of the monthly income withdrawn from the Minimum Sum Scheme to pay for the monthly instalments of the upgrading cost. REVIEW OF HDB POLICY TO ENCOURAGE YOUNG COUPLES TO LIVE NEAR PARENTS 47. Dr S Vasoo asked the Minister for National Development whether he will make further reviews of the policy to encourage young couples to live near parents in older Housing and Development Board housing estates. Mr Lim Hng Kiang: HDB's public housing policies support the national policy of upholding the family as the basic unit of our society. There are various housing policies in place to encourage young couples to live near or together with their parents. For example, applicants under the Multi-Tier Family Housing Scheme are accorded higher priority in the allocation of new HDB flats. They are also eligible, subject to credit assessment, for mortgage loans of up to 90% instead of the usual 80% of the purchase price.”
“When the Marina Boulevard site was launched for sale 6 months ago on 13th November 1997, the market conditions were very different from now. There was strong interest in the site. More than 70 developers' packets were sold and there were active queries by developers on the details of the site. Several architectural firms were asked by clients to look into the design of the development. Although the regional economic landscape and our market conditions had changed considerably since then, there was still active interest in the sale site. Given that the interested developers had invested much time and money in studying the site, it would be unfair to them if the Government had aborted the tender. It would call to question the credibility of the Government's tender system. Given the prominent location of the site and the fact that part of the parcel is affected by the MRT line, the size of the parcel is appropriate. However, in view of the current market conditions, URA will not re-tender the site this year. URA will review whether other smaller parcels at the New Downtown should be released instead, and when to do so. PAYING FOR COSTS OF MAIN UPGRADING PROGRAMME 46. Mrs Yu-Foo Yee Shoon asked the Minister for National Development whether he will allow children who are not staying with their retired parents to pay for their parents' share of the cost of the Main Upgrading Programme, using their Central Provident Fund savings.”
“The Government is monitoring the situation closely. We review the situation all the time. So if the situation takes a turn for the worse and it is time to act, we will act. REGIONAL ECONOMIC CRISIS (Impact on cost of living) 18. Mr Sin Boon Ann asked the Minister for Trade and Industry if he will give an update on the impact of the regional economic crisis on the cost of living in Singapore and whether Singaporeans on the whole experience a lower standard of living as a result.”
“The message to developers and purchasers is: let the market set its price. Mr Shriniwas Rai (Nominated Member): Mr Speaker, Sir, from the Minister's reply, I would like to ask a supplementary question. He said that the time is not opportune for a change, but the newspaper reports seem to indicate that mortgage sales are on an increase and there are few takers, if the last four auction sales are any indication. I would ask the Minister - I am not asking for a specific date - whether he could give a period of time, and whether he will review the position.”
“The prices of residential units had fallen by 9.1% in first quarter of 1998. Cumulatively, prices had fallen by 24.2% since the second quarter of 1996. However, the sales of uncompleted units had increased by 17.3% in the first quarter of 1998 compared to the last quarter of 1997. As at first quarter of 1998, there was an accumulated stock of about 8,900 units that had been launched but not sold. In addition, there were about 11,500 units that have not been launched yet. The occupancy rate of the completed units had remained fairly stable at about 91%. Due to the regional economic turmoil, it is generally expected that demand for private residential properties will remain weak. However, the success of some recent property launches indicates that there is a pool of potential buyers willing to enter the market at the right price. The Government had, in November last year, suspended the stamp duty payable on properties sold within three years of purchase and made other adjustments to the Government's land sales programme and to the project completion period specified for residential land sales. We do not think there is a need to make further refinements to the financial rules on residential property transactions or to introduce other adjustments at this point in time. The Government, however, will continue to monitor the situation closely. Assoc. Prof. Low Seow Chay (Chua Chu Kang): Sir, I would like to know the views of the Minister and his message to the developers. Judging from the recent overwhelming sales in two condominium projects in Woodlands and one landed property in Chua Chu Kang, I think the demand is there. What is the message of the Minister to the developers, gauging from this kind of response?”
“Mr Zulkifli bin Baharudin asked the Prime Minister whether, in view of the deteriorating situation in Indonesia, it is timely for Singapore to consider humanitarian assistance to Indonesia. The Deputy Prime Minister (BG Lee Hsien Loong) (for the Prime Minister): Mr Speaker, Sir, with your permission, and on behalf of the Prime Minister, I will answer Questions 9 to 14 together as they are related.”
“Mr Speaker, Sir, the Minister for Trade and Industry, in his answer to the previous Question, has also outlined what HDB has done to assist the shop tenants. HDB will continue to monitor the situation closely and, if the need arises, introduce additional measures to assist its tenants. LOAN AND TRADE FINANCING SCHEME FOR INDONESIA (Position) 9. Mr Seng Han Thong asked the Prime Minister, in view of the change in circumstances in Indonesia, whether our offers of US$10 billion in assistance to Indonesia and the bilateral trade financing scheme for Indonesia remain valid and relevant. TRADE FINANCING SCHEME FOR INDONESIA (Details) 10. Dr Lee Tsao Yuan asked the Prime Minister whether there are any details regarding the trade financing scheme for Indonesia. TRADE FINANCING SCHEME FOR INDONESIA (Finalisation of terms) 11. Mr Zulkifli bin Baharudin asked the Prime Minister whether the Singapore Government has finalised terms of the trade financing scheme and, if so, what are these terms and what are the risks involved. LOAN TO INDONESIA (Review) 12. Mr Zulkifli bin Baharudin asked the Prime Minister whether, in view of the latest political and economic situation in Indonesia and the assessment that Indonesia may not be able to meet its sovereign obligations, the Singapore Government will review its $5 billion loan to Indonesia. UNREST IN INDONESIA (Impact on Singapore's pledge of financial assistance) 13. Mr Goh Choon Kang asked the Prime Minister what is the Government's assessment of the situation in Indonesia; and how the latest unrest there will impact on Singapore's pledge of financial assistance to the country. UNREST IN INDONESIA (Humanitarian assistance) 14.”
“Many agencies are involved in the management of Singapore's beaches, coastlines and related sea sports. For example, PWD is responsible for breakwaters and seawalls, NParks is responsible for the management of parks adjacent to beaches, while Maritime and Port Authority (MPA) regulates the use of sail crafts and powered boat activities in water adjacent to beaches. To ensure the safety of swimmers from watercrafts, MPA has regulations to restrict watercrafts from encroaching into areas designated for swimming. For beaches close to parks, NParks also does not allow powered water-sports boats like jet skis from being launched from parks. Warning signs have also been put up along potentially dangerous areas along the beach to warn the public. In addition, the Singapore Life-Saving Society provides a rescue service at East Coast Park and Changi Beach Park. NParks has, through the media, encouraged the public to observe warning signs erected. The Singapore Life-Saving Society has also used the media as a means to educate the public on the need to exercise care and to take the necessary precautions to ensure their safety. Although the various agencies have taken steps to make the beaches and shorelines as safe as possible, users of beaches should exercise due care when visiting the beaches. PROFIT GUARANTEES OF SPECIALIST CLINIC PRACTICES 18. Mr Choo Wee Khiang asked the Minister for Health whether his Ministry is aware that some specialist doctors have agreed to give specific profit guarantees to a listed company that is proposing to purchase their specialist clinic practices, and what will be the adverse impact such an arrangement will have on the standard of medical practice.”
“Mr Zulkifli bin Baharudin asked the Minister for Law what steps will be taken to address the issues contained in the report from the Office of the US Trade Representative on the growing rates of piracy of intellectual property in Singapore.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." This Bill seeks to repeal the Princess Elizabeth Fund Act. The Act was originally passed in 1949 to erect workmen's dwellings with monies left over from the Princess Elizabeth Wedding Central Celebrations Fund. The Act was enacted to empower the HDB to let out and manage the Princess Elizabeth Estate comprising 252 residential units and 18 commercial units. The situation has changed completely since 1949. By the early 1980s, close to 75% of Singaporeans live in HDB flats. About two-thirds of them are staying in home ownership flats. The units at Princess Elizabeth Estate were outdated and no longer popular as rental units. In 1986, approval was given to HDB to include this estate in HDB's decanting and redevelopment plan. The estate has since been cleared and the vacant land returned to the State on 20th July 1995. With the demolition of the buildings and the land returned to the State, the Act is now obsolete. The Attorney-General has confirmed that it would be in order to repeal the Act. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. [Mr Lim Hng Kiang]. Bill considered in Committee; reported without amendment; read a Third time and passed. ADJOURNMENT Resolved, "That Parliament do now adjourn to a date to be fixed." [Mr Wong Kan Seng]. Adjourned accordingly at Eight Minutes to Four o'clock pm to a date to be fixed. WRITTEN ANSWERS TO QUESTIONS FOR ORAL ANSWER NOT ANSWERED BY 1.30 PM REPORT FROM OFFICE OF US TRADE REPRESENTATIVE 12.”
“If a house has 30 workers, I think, then straightaway, we will know that that house is likely to be used as a boarding house. So although there is no number, the magnitude of the number, a reasonable number, is a suggestion that a particular house is used as a boarding house. So if the number is, say, 10 to 15, please let us know.”
“URA has taken enforcement action and cleared 895, or 91%, of the cases we know. The remaining cases are still under active enforcement. As to the specific areas he mentioned (Cambridge Road, Sing Avenue, Joo Avenue, Carlisle Road), URA is particularly active because the MP has been particularly active in complaining, and that is good for him. The URA has sent 26 warning letters to the persons responsible to cease the use. I think they have ceased. Six cases have complied, and enforcement notices will be served on the rest. How do we solve the foreign worker problem? This is something that everybody must put their mind to, but, in particular, the people who employ foreign workers. It is not the Government's job to employ foreign workers. It is Government's job to house Singaporeans, and already we have a headache. I think we cannot be encumbered with trying to solve housing for foreign workers. But it is a problem. So HDB is assisting in whatever way it can. But it is not HDB's problem. HDB is extending its goodwill and trying to solve a problem that has infected the whole of Singapore, because we have too many foreign workers, and Members are complaining that the foreigner workers levy is too heavy. One way to solve the problem is to allocate land for dormitory housing. The MP has alluded to that. JTC will also be able to buy HDB flats to rent out to foreign workers. MPs raised a point that the Planning Act does not specify the number of persons that can live in a house. That is correct. Because these are private houses and some of them have large families (3-generation or 4-generation families). So we cannot take a particular number. But some numbers are obviously irregular. For example, if a house has 100 workers, of course, it is used as a boarding house.”
“Our problem is that we have to chase contractors to finish their jobs early, not that we are delaying their payments. MPs suggested providing housing for foreign workers. This is also a point raised by Mr Sinnakaruppan. This point has also been raised by SCAL. So we are looking into how we can help contractors house foreign workers. One possible way may be to allocate land to SCAL to build dormitory housing, but this is in a very initial stage, and I would let the MPs know more of the details later on. On disposal of construction wastes, the MP suggested employing term contractors to clear all the debris caused by construction in zones. Maybe in the western zone, you have two term contractors; the northern zone you have three term contractors. So these contractors will be responsible for clearing all the debris generated by all the construction within the zone. I think this is not very easy to implement. But, nonetheless, I will ask the officials to look at it. Basically we do not know the volume of work in a particular sector of Singapore, because some of this information are time-sensitive. So how do we call for contracts? How do term contractors price their services? Because they do not know the volume of work that is coming down, and you cannot tell them that certain activities will be started in one year or two years' time. These are price-sensitive information. Mr Sinnakaruppan made a strong pitch for Government to regulate the use of private residential properties as boarding houses. For the whole of 1997, URA received 979 cases of unauthorised use of residential premises as workers' quarters. While I concede that this may be a low number, but if Members know of any abuse of residential units as boarding houses, please let us know.”
“But, nonetheless, I want to assure the MPs that the Ministry is looking into this problem. On standardisation and modernisation, the Member encouraged public projects to adopt pre-fab components, pre-cast components, in order to speed up the construction process and to save construction cost. This is being done extensively by HDB. HDB has a pre-fab technology centre. I think the MP has visited it. For public projects, there is no problem in encouraging contractors to use standardised components. The problem really lies in the private sector. This is because most Singaporeans think that pre-fab buildings are not so aesthetically beautiful. They prefer specially designed, one-off buildings. Nonetheless, the Ministry is aware that the productivity in the construction sector is rather low and we think that one way to go about it is to encourage more pre-fab components. Perhaps in the near future, we will think of legislating buildable designs. On project financing, the MP made a few suggestions. He said that Government should give initial payment, then, timely progress payments, and then early settlement of final cost. Initial payment is not possible. The Government can only pay when something is being done, because we are dealing with public money. We cannot pay the contract when no work is being done. I notice sometimes it happens in the private sector. But we are dealing with public funds, so initial payment is not possible. Timely progress payments, this is always done. HDB and PWD always make timely progress payments. In fact, because HDB, PWD and all the Government bodies are such good pay masters we are seeing a flood of contracts recently. Early settlement of final accounts, this is always done. We always pay promptly.”
“This problem has also been highlighted in the Ministry's dialogue with the Singapore Contractors Association Limited. They have raised the problem that it is very expensive for contractors to go for design-and-build projects one after another if they fail in a few of them. So we will look into how we can minimise the cost for contractors, because we want to encourage contractors to go for design-and-build. This is what Singaporeans want. They are prepared to pay a premium for design-and-build flats. 3.00 pm He also suggested that all Government departments should adopt HDB's approach in purchasing basic building materials in bulk for contractors working in their projects. This is going to be very difficult. I think it is not possible for all Government departments because none of them have the kind of volume of building programme, like the HDB's. Certainly not, for example, Ministry of Labour; certainly not Ministry of Education. They build schools but they are not building in the volume that HDB is building flats. The problem of Clerks-of-Works and Professional Engineers (PEs) has also been highlighted by SCAL. The Ministry is looking into how we can ameliorate the problem. But, essentially, the problem must be solved by the contractors and the developers. It is a developer and contractor's problem. Some Clerks-of-Works are demanding, for example, concreting at night, thereby jacking up the cost for contractors and creating noise for residents. The contractors are very welcome to file a complaint to BCD, CIDB or to the Ministry officials, and we will look at it. But I understand that SCAL is reluctant to finger Clerks-of-Works who are corrupt in their mind and we have asked SCAL that they must regularise. We can only help them, but they must take action on their part.”
“For example, in the January TRHS exercise, we offered 600 flats - 500 flats for non-sharing and 100 flats for sharing. We invited 1,233 applicants to select these flats. Out of the 500 applicants selected to pick the TRHS flats, we find that 196 rejected the flat. In other words, I offer you a flat, I say "If you want, there you are." You say "I don't want because I want a better area or I want a better height." So it is not on. Even for this group of flats, with assured allocation, the fall-out rate is very high, almost 20%. For the 100 flats for sharing purpose, eight took up the offer. So 92 flats went a-begging. For people who really want a flat urgently for whatever reasons, my answer to the MP is, if they are not choosy about location, if they are not choosy, if they not too picky about privacy, they can get it immediately. I go to the problem raised by Mr Chay Wai Chuen. I think he is quite right. As a rule, URA does not approve any independent retail space in industrial or warehouse development for retail purposes for the reasons pointed out by him. However, showrooms are allowed within the 40% floor area which can be used for ancillary purposes like office and cafeteria. Showrooms are restricted only to the first storey level of industrial or warehouse developments fronting major roads. URA will continue to take enforcement action on unauthorized use of industrial or warehouse space for independent retail activities. There are a few in town. We will look at them and regularise them. Dr Teo raised the issue of cost reduction for public projects. First of all, I would like to thank him for giving us very good ideas. On design-and-build tenders, he suggests that all Government departments should follow HDB's practice. I want to thank him for complimenting HDB.”
“On Transitional Rental Housing Scheme (TRHS), my friend and MP, Mr Sinnakaruppan, has brought out this problem. TRHS exercises are conducted quarterly, every three months. First-timer applicants who have been on the Registration of Flats System (RFS) for at least three months are eligible to apply for TRHS flats. I have been told that if you applied for a flat before July last year then you qualify to go into the TRHS exercise in January in the next quarter. Applicants who are not shortlisted are nonetheless placed on the reserve list and if there are rejected flats then we will ask the people on the reserve list to select one of these rejected flats. The Member asked how fast people who have been invited to select TRHS flat can get the flats. In fact, if the applicants are not choosy, they can get it very quickly because over the last year, HDB has increased both the supply and moderated the demand. He mentioned some of the supply modifications HDB has made. HDB has bought more 3-room flats from the open market for TRHS applicants. We have offered 1- and 2-room flats for selection, in addition to 3-room flats. But very importantly, we have also opened a category called "Flat Sharing". I hope the Member is aware of that. If somebody comes to your MPS and says he needs a flat very urgently because his wife is pregnant or his mother-in-law is having problems with him, then we tell him that there is a group of flats called the "Flat Sharing Scheme", where if he is willing to share a flat with somebody else and pay half the rental and share half the responsibility, he can get the flat almost immediately. In fact, I can say immediately, because the drop-out rate is very high.”
“Under the lease, as he rightly pointed out, the parties sharing the use of a party-structure are jointly responsible for its maintenance. Hence the affected upper and lower lessees are required to engage their own contractor to rectify the leaking problem and share the cost of repair works. Mr Ong is not disputing that this should be the case. He is asking for faster remedial action on the part of HDB and I think he is appealing to HDB to apply some kind of pressure on the tenants, the upper floor and lower tenants, to settle the problem. HDB on its part will assist lessees to diagnose and determine the cause of the leakage and will recommend appropriate remedial action. As to the time lead, I will ask HDB to look into the problem and see whether they can shorten it. But the problem is really not HDB. The problem is really the tenants, both on the upper floor and lower floor. I think they should take joint responsibility. They should realise that when they inhabit the flats there are certain ownership responsibilities and this is one of them. But the problem is not very serious. In 1997, only about 1% out of 11,000 ceiling leakage cases has such difficulties. If the leakage is really very bad and affects the structural integrity of the building, then HDB will take immediate legal action to enter the premises to carry out the repair and recover the cost from the lessees. This action will, as the MP will appreciate, only be carried out as a last resort because this is a very drastic action and we respect the rights of the owners. Indeed this is practised widely in the condominiums where the MC will refrain from interfering in the problem of the upper and lower floor neighbours. They will only go in when the problem becomes acute.”
“If he knows of any specially deserving cases, he is welcome to write to me and we will look at it specially. On the issue raised by Dr Teo Ho Pin on HDB car parks, I have asked my officers to give me a report. He tells me that there are adequate car park lots provided in semi-mature HDB estates, especially those since mid-1980s when the norms were fairly generous. In Bukit Panjang, where he is the MP, for instance, the overall season parking rate is only about 60%. So there is no real serious problem in Bukit Panjang. However, there could be local problems. The problem is that some of his residents may be reluctant to go to a car park which is slightly further away, say 100-150 metres. That is why HDB has this grouping system where we group a few car parks together and encourage residents within the zone to share these car park spaces. Just for Dr Teo's information, there are 34 HDB car parks comprising 11,866 lots in Bukit Panjang estate. But the only car park with localized shortage is car park group G20. I am not sure if he is referring to that, but that is the only localized shortage in the area. About 5-6% of the residents are unable to purchase a season parking ticket for this car park group. HDB will look into this special problem and will come up with some solutions and will inform the MP in due time. On the issue raised by Mr Ong Ah Heng on ceiling leak and spalling concrete, first let me distinguish between the two. Spalling concrete is considered a surface maintenance defect. There is no cost sharing between the upper and lower floor lessees for spalling concrete within the flats as it is the lessee's responsibility to repair them. But I think Mr Ong was referring to the ceiling leakage problem, particularly in toilets.”
“The Parliamentary Secretary to the Minister for National Development (Mr Koo Tsai Kee): Sir, I refer to the question by Prof Chin Tet Yung. First, the Minister and I share the plight of some of these divorcees, the problems that have been raised by the Member. But I think we have got to re-focus back on basics. What is the mission of HDB? What is their prime objective? Their prime objective is to provide subsidized public housing for all Singaporeans who qualify, but in particular, with special emphasis for first-timers. So to the extent that HDB has provided HDB flats to the couple before they divorced, or even after they had divorced, you find that HDB has done its primary job. If HDB were to waive the 10-year embargo for divorcees, we risk slipping into what economists call "moral hazard", which is the story for the last 6 months since the crisis in Thailand broke out. The problem the Member has raised is real and the Ministry will look into it. But the problem is not as serious as he has raised because the divorced couple has an HDB flat. If they had lived in it for 5 years they can sell it on the resale market. The proceeds can be used to rent an apartment or a flat. If the divorced couple are very poor, in the case cited by Prof Chin - if the wife especially earns below $800 - we can look at the case sympathetically and HDB is prepared, on a case by case basis, to waive the 30-month debarment. When you sell your flat you have got to wait for 30 months to apply for a rental flat. If he or she is very poor, then we are prepared to look into this 30-month debarment, provided the divorcee satisfies all other rental conditions. So I hope the Member is satisfied with the answer.”
“In cases where they masquerade as HDB contractors, we will go after them. In cases like, for example, the real estate agents, we will take steps to educate them. HDB in fact runs afternoon seminars, both in English and Mandarin, so that you need not go to a real estate agent to sell your flat or to buy a resale flat. Attend these seminars, free of charge, or you pay a small fee. HDB will take you through how to transact a resale flat and you are on your own. So similarly for all the other household services. Perhaps one suggestion that Dr Toh can take is to have term contractors within your town councils and advertise these term contractors as reliable contractors for your residents. That is one practical solution you can take to help your residents. On the expansion of the jurisdiction of town councils, I am also very reluctant to do so. If Dr Toh can solicit the support of more Members of this House, I would then consider it. I do not think it is a good idea to take over looking after the common property of private housing estates. They are very well taken care of through their own management corporation. I do not see why you want the town councils to do extra work. If we do implement the upgrading of the common areas in the private housing estates, we will find a mechanism by which there will be a Government agency to help the MP or the Advisor to the grassroots organizations to implement the programme. But it need not necessarily be undertaken by the town councils. So off-hand, I would not support the expansion of the jurisdiction of town councils until I get more favourable support from other Members because this will affect every Member in this House. I will ask Mr Koo Tsai Kee to take the other questions.”
“It is impractical because the regulatory expertise lies in different Ministries and in different professionals. So it is not possible to put them all together. What we try to do, of course, is to use IT to overcome some of these problems. With the setting up of CoreNet and other IT applications, you are virtually dealing with a one-stop service, without physically and administratively putting everybody in one Ministry. I take Dr Teo's point about the merits of a Ministry of Construction. Again, personally, I do not see the need. We have CIDB to spearhead the requirements of the construction sector. I share the same frustration with Dr Teo in that the construction sector is not improving in productivity as much as we would like to, but we have different groups of people tackling this issue together with the Singapore Contractors' Association. I will be very happy to enlist the help of Dr Teo in many of these committees, so that he can apply his talents into some of these issues. 2.45 pm As for licensing of household services, basically the Government licenses or regulates only if there is a safety issue involved. For example, Mr Goh Choon Kang very eloquently talked about the dangers posed by old air-conditioner units. I share his view, and in this type of situation you will see the HDB getting more involved in the act. But it is not possible to license good service. How do Singaporeans choose the motor-repair workshop? You do not license it, you let the Motor Repair Association self-regulate. How do Singaporeans choose their own hair-dressers? You do not regulate. Service levels cannot be regulated. So I sympathize entirely with Dr Toh See Kiat. All I can say is CASE is doing great work. Anytime Singaporeans face such problems they are encouraged to go to CASE.”
“For industrial tenants who opt to rent the units, they will continue to pay the existing rental rates on a per square metre basis for the remaining term of their existing tenancies. They will also enjoy a two-month rent- free fitting up period. This rent-free fitting up period will be extended to six months for Singapore citizen tenants. With all these programmes in place, together with the assistance and the financial schemes offered by the Productivity and Standards Board for local SMEs, I am sure we can work closely together to make sure this redevelopment programme meet their needs and puts them on a more competitive footing. Let me turn to the next set of questions raised by Dr Toh See Kiat, Mr Lew Syn Pau and Dr Teo on licensing, central regulatory body and Ministry of Construction. My general comment to all these points is that there is a standing joke in the civil service that whenever you get a Minister or a new Permanent Secretary, to create a sense of change, you centralise if the previous administration had decentralised. And you decentralise if the previous administration had centralised. So there is this fad of moving in the spectrum. This also happens in the private sector. You have conglomerates. Then, in recent years, everybody has downsized, core competence, sub-contract. Now, you are back to mergers and acquisitions. Sir, I do not intend to go into the merits or demerits of centralisation or decentralisation. I just want to make the point that we have arrived at where we are. We do not have a one-stop service for all the building regulations, first, because it is not practical. You have a super-mega Ministry. I have no interest in heading such a Ministry.”
“" If we do not do anything, the premises do not meet their requirement and, over time, they will be less and less competitive. So I think we must press ahead with the HDB industrial redevelopment. What we will do is to incorporate certain features that will help ease them over to these new premises. First of all, for every trade, we set up a committee to understand the requirements of the individual trade. The food industry is different from the motor car workshops. It is different from the light electronics. So we have committees which will look into the needs of each trade, so that when we redesign and redevelop the industrial premises, they will meet the needs of each trade. Secondly, with this redevelopment, we will also provide the opportunity to rehouse the tenants from closely related trades within the same industrial complex for better synergy. The premises will be bigger. There will be higher ceiling heights, higher electrical loads and, therefore, better attuned to the modern needs of our SMEs. As far as possible, the replacement units built by HDB will be located within the same estate to minimise the loss of business goodwill and workers. For tenants who are affected by relocation, I take Mr Lew Syn Pau's point. We will give them ample notice to minimise disruption to their business operations. Industrial tenants affected by this relocation will be given an ex-gratia compensation of $48,000 per unit. They are also given an option to either purchase or rent the replacement units. Purchasing, of course, will free the tenants from uncertainty in rent review. HDB will try to keep the prices at affordable levels by selling them at a shorter lease period of 30 years. Singapore citizen tenants will be given a 5% discount of the market price.”
“Again, I can reiterate what Dr Richard Hu said, if the situation worsens, he is prepared to consider other off-Budget measures to assist the SMEs even further. So I think you will not find a more sympathetic landlord than the HDB with regard to HDB shops and the industrial shops. Let me now turn to the redevelopment of HDB industrial estates. I agree with Dr Ker and Mr Lew Syn Pau that the HDB industrial estates are very old. Some of them were built more than 20 years ago and sorely need redevelopment or upgrading. HDB has about 10,600 industrial premises under its management. About 55% are single storey terrace workshops built in the 1970s. The remainder are high-rise industrial shops which are about 15 years old. The House has heard the various problems in the industrial estates. They were built with inadequate electrical loading to meet present needs. The parking situation is tight because SMEs now use low loaders. They use container trucks. The industrial estates were not designed for such heavy vehicle movement. Therefore, last year, HDB announced a major redevelopment programme for its industrial estates. The purpose of this redevelopment is two-fold: (1) to optimise the use of these sites to build it high-rise, greater intensity so as to optimise land use; and (2) to provide better facilities that will meet the operational requirements of the industrial tenants. This redevelopment is necessary and long overdue. I know many SME tenants will argue that during this difficult period, this will cause a disruption. But no time is a good time. When business is good, they will say, "Don't disturb me. I am rushing to fulfill my orders." When business is bad, they say, "Don't disturb me. I can't afford to be going to new premises.”
“But we acknowledge that during this period of economic difficulties, we should moderate this increase, but we must adjust. Another feature is that with two-thirds of our shops sold, in fact, any shopkeeper who feels that HDB rentals are too high can easily rent a shop from the two-thirds who have already bought their shops. If we look at the classified advertisements in the Straits Times and the Chinese papers, we will find many advertisements of shops put out for rent by shopkeepers who have already bought their shops from the HDB. In fact, the market rent is now set by shopkeepers who own their shops and who are now renting or sub-letting their shops. So HDB does not set the market price. Two-thirds of the shops are now sold and this is the group that is now setting the market price. Furthermore, in the November announcement, we decided on a one-time exercise to adjust the rents downwards to the market rent. As you know, in HDB tenancies, we will keep the rents frozen for three years and then adjust it at the end of the 3-year tenancy. We could have kept the rent at current levels and then adjust the rent downwards at the end of the 3-year tenancy when the rent is due for renewal. By December, we decided on a one-time exercise to adjust all the rents down to the market rent, subject to a maximum of 10% drop. So, based on this announcement in November, as of today, 2,380 commercial tenants and 2,472 industrial tenants have benefitted from the rental concessions introduced in December 1997. Unlike what Mr Tay Beng Chuan has said, I think HDB has done more than its fair share to help the shop tenants ease over during this period.”
“Sir, I propose to take the questions on rentals of HDB commercial premises and the redevelopment of HDB industrial estates. Let me try and explain the situation in the HDB commercial and industrial rentals. The situation, in fact, has changed significantly over the years. Since 1988-1989, we have sold the majority of HDB shops. Now, more than two-thirds of HDB shops have been sold. HDB does not rent out any more shops except for small neighbourhood complexes in the new towns. Mr Tay Beng Chuan pointed out that the rate of return on HDB's commercial property department has improved over the years. This is so because the more you get rid of the shops, the better your performance. The HDB shops are heavily subsidised. So, once you sell away two-thirds of the shops, your performance improves. When we sell away all the shops, the performance will be even greater. In November last year, we announced several measures to help the HDB shop tenants. As you know, in many HDB shops, the rents are far below market rents, and we have this programme of moving the rents up to market rents at the third renewal of their tenancies. In November last year, we announced further moderation of this adjustment. But we have to do so because it is very inequitable. In the same row of shops, you will have one shopowner who tendered for a HDB shop recently and he will be paying the market rent of $2,500 per month. Next to him, there will be somebody who has been resettled several years ago and even though his rent has been moving up by 30% every three years - he started from a very low base of $300 - now he is perhaps paying $600. So I think it is not fair to continue with this situation. And it is in our interest to move things to a more equal level playing field and adjust the rents.”
“Let us not make it more difficult for them. The Minister has just now demonstrated an incredible ability to come out with fair and just solutions. And I hope that in this case, he will also do so for this group of unfortunate people.”
“Second, the spouse who is given the opportunity to keep the flat will have to be eligible under one of the schemes, execute another mortgage and pay the other party a sum that reflects his contribution. This may be a mission impossible for the lower income groups. In a case that I recently dealt with, a young mother, who has custody of her two children, has been asked to take a new mortgage of $50,000 where she is expected to pay $300 per month over 29 years, and to provide over $110,000 cash to discharge the existing sum owed. She only earns around $800-$900 a month. It is impossible for her to come out with such a large sum. So, for this category of persons, it appears that the rules do not work at all. Renting a flat is also a problem, because the divorcee might not fall within the $800 level. I think that level is set too low. A more realistic figure, bearing in mind that the spouse may have to take care of children, may be around $1,500. Mind you, Sir, this does not even mean that they will definitely get a flat. The queues are long and the divorcees are not regarded as a special class. Frankly, my concern is for the children of broken marriages. Nothing could be more traumatic for them than to see their parents separating. On top of that, they find that they are no longer at the home, suffer severe financial hardship and may have to rely on the goodwill of relatives and the like. Sir, the plight of divorcees who are unable, after they are divorced, to come up with funds to cover the cost of ownership is a very real one. Perhaps a more flexible rental policy can be implemented to allow them to live as a family unit as best as they can. We should, at the end of the day, also think of the children who must have been through a great deal of mental anguish.”
“HDB will generally allow a lessee more time to dispose of his first flat, after he has taken possession of his second flat, based on evidence that he has tried to sell off the flat but he could not find a buyer. HDB will normally extend the time for him to dispose of the flat. The answer to his second question is no, HDB will not be the buyer of last resort. We leave it to the individual to dispose of his flat in the open market. Assoc. Prof. Chin Tet Yung (Sembawang): Sir, according to the latest available statistics, divorces granted under the Women's Charter have been increasing substantially, the number more than doubling in the space of 10 years. Muslim divorces also saw a steady increase. The Department of Statistics reported that the divorce rate tends to be higher among younger married persons. The majority of divorcees were aged between 30 and 39 years in divorces granted in 1996. In divorce proceedings, the distribution of matrimonial property is usually an issue. If the matrimonial home is an HDB flat, the issue is whether it be offered for sale or retained by one of the spouses. Several problems have occurred concerning this matter. First, if they purchased an HDB flat as the matrimonial home, they would be treated as upgraders when they sell their flat following their divorce. This means that they will be barred from applying another HDB flat for 10 years. A couple who bought a flat in 1989 and who sold it in 1995 will have to wait until 1999 before they are eligible to apply for a new flat. Meanwhile, the displaced divorcee will have to stay with relatives, friends or rent another flat.”
“Subsidy, as I have explained many times, is the difference between what you pay in the market and what you are paying today. That is subsidy. For the north zone flats, the principle which I enunciated is that the Government will subsidise the less popular areas more than the more popular areas. Why? Because we have a building programme and we want to encourage Singaporeans to buy into the building programme. Today, we have more than 40,000 applicants in the Sengkang queue. Why? Because it is a very popular town. Because the subsidy there is much higher. Otherwise, why would people apply for Sengkang Town? [Mr Low Thia Khiang interrupted.] Precisely. And the more you raise about this issue, the more the prices in Sengkang will go up. 1.30 pm”
“As I have explained in my speech earlier, the Government's pricing policy goes on certain principles. First, we will price 3-room flats such that 90% of first-time households would be able to afford it. We buy these flats from the market and we subsidise it to the level that 90% of Singaporeans can afford a 3-room flat. Today, that direct grant is $50,000 per flat. Similarly, when you buy a new flat from Government, you are enjoying a market subsidy, what you pay for the flat and what the flat is worth in the open market, and that subsidy is $103,000 in Sengkang. If you say that this is inequitable, I agree with you. In which case, we should raise the prices of flats in Sengkang.”
“Since 1988, Mr S. Dhanabalan has been trying to explain to Members the meaning of "subsidy". "Subsidy" means what the commodity can fetch on the market and what you are paying for it. That is a subsidy.”