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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“This is for practical purposes where the development charge is not expected to be very much. We will discourage applications for separate valuations, because this requires a lot of time and resources. Mr Chuang raised the issue of the 30% rule. Again, we found that if we want to have a very high standard of maintenance, particularly in shopping centres and strata title developments, it is necessary to have one owner having at least 30%, so that that owner can set the tone and the character of the development. If the entire development is completely subdivided, very soon you find the standard of maintenance goes down and that there will be no leadership in redevelopment, modifications or improvements. So this 30% rule has proven to be quite effective. We will monitor this. Of course, it imposes certain burdens on the owner to retain the 30%. It also creates problems where individual owners of small plots combine to develop the entire property. We will look at this and see how we can find a solution to overcome this - how to achieve singularity of purpose that is given when you have a 30% ownership, like single owner versus the obstacles that such a rule creates. I also like to assure Mr Chuang that it is not the intention of the competent authority to look at individual designs, except in critical areas. We have designated areas where the buildings will have to go before an architectural design panel. This is to ensure that the design is compatible in what we call "designated routes". These are key routes leading to the Istana or what we designate as "ceremonial routes". Beyond these very restricted routes, it is not in our interest and we do not intend to regulate design. Mr Jeyaretnam talked about the enhancement of enforcement powers and fines.”
“But I would take it up with the AG's Chambers and refer the two suggestions by Mr Rai to them. Mr Rai also suggested a subdivision of conservation units. Today, we do allow subdivision of shophouses in areas other than the conservation district. In other words, in shophouses not gazetted for conservation, we do allow them to be subdivided into two units as long as they have separate access, etc. We are a little bit more cautious in the conservation district because we want a single owner to make sure that there is proper maintenance and proper upkeep of the conserved area. But we would continue to monitor this. If the subdivision in the other areas, other than the conservation district, does not lead to a degradation of the standards of conservation and maintenance, we will be prepared to look at this issue again. Mr Zulkifli asked whether there is a difference between "conferred" and "empowered". I think this is the new language. I was told that in simplifying language, the clause says that the responsibility and the functions conferred, rather than the old way of saying that we are empowered to do this and empowered to do that. The substance remains the same. On the valuation method, we have found the standard valuation method to be effective. We have done this for many years. We have been reviewing the standard development charge every year. We have found this to be very effective. It provides greater certainty to the market. We still retain the provision to allow somebody to appeal for an individual valuation if he finds that the standard valuation does not quite meet his requirement. The additional amendment in this Bill allows the Minister to set a certain limit below which one cannot ask for a separate valuation.”
“Again, over the years, we have set up a practice where any change in the Master Plan is put out in the public domain and anybody who is aggrieved can object to it or make representations. The Ministry treats the competent authority at arm's length. Within the Ministry, the officials will evaluate that complaint or representation separately. In situations where the issue is very important, we will set up a panel of Planning Appeal Inspectors. These are planners drawn from the university, the private sector, or other statutory board, not within the Ministry of National Development. We should then look at the planning decision of the competent authority separately and recommend to the Minister whether or not there is a case for the appeal. So there is established mechanism for this review. We are not in favour of independent tribunals. We do not want to refer every appeal to the court because the experience in many countries with such a mechanism is that planning applications get bogged down and it takes a very long time for any sensible development to take place. It becomes a mechanism by which different vested interests will use that to block future developments. I will now take the other issues raised by Members. Mr Rai asked why not use the District Court instead of the High Court. I must confess that I would have to be guided by the AG's Chambers on this. My understanding is that the requirement to go to the High Court imposes a heavier responsibility on the competent authority. Under the circumstances that we need to apply to the High Court for an injunction would be in situations where the owner excavates land and we want to put a stop to it. The AG's Chambers' advice is that the competent authority must approach the High Court rather than the District Court.”
“So what we have provided for in the Bill is to set out the five limited circumstances in clause 14 where consideration of public interest should be allowed to take precedence and even where such circumstances are there, the competent authority must first obtain the approval of the Minister and the Ministry. So the flexibility is limited and clearly circumscribed and therefore we can be sure that public confidence in the Master Plan as a reliable guide for the development of land in Singapore would not be undermined. The second issue is the vesting of land. We could use the Land Acquisition Act for every piece of land that the Government needs for public purposes. But, again, through practice, we find that as you develop a particular site, it is more efficient to vest that piece of land that is required for the public work, for example, to the Government and at the same time, you do not suffer from any less development rights. The development rights of that piece of land are transferred to the rest of the development. That has, in practice, proven to be very effective and has not led to abuse. In the old days, where developments of large tracts of land are involved, vesting of lands was also required for setting up of parks and schools. But that phase of Singapore's development is largely over. Today, the vesting of land primarily refers to situations where you give up the land in front of your site for the widening of road, or you give up the land by the side of your site for drainage reserves. We have found this current practice of vesting of land to be effective, efficient and has not led to abuse and this is continued in the present Bill. The third main issue is whether there ought to be other mechanisms of review over the Ministry's and the Minister's decision.”
“Let me thank Members for speaking up in support of the Bill. I think there are three key issues that have been addressed. I would like to take these three key issues. One, how to strike a balance between having a Master Plan that we follow religiously versus the flexibility to amend the Master Plan. The second key issue is how do we have the powers to vest land without it being abused. Third, how to have a review of the Minister's decision, again to prevent abuse. And then I will take the other issues raised by various Members. The first issue is the importance of the Master Plan to guide long-term development of Singapore and to have certainty in that Master Plan so that everybody can make their individual decisions through that Plan. At the same time, we know that Singapore is very small and we have to respond to many changes and we need some flexibility in that Plan. What we have arrived at after many years of practice is to have a Master Plan comprising now of 55 Development Guide Plans. We set out the planning intentions of the different areas in Singapore. Before this Development Guide Plan is gazetted, the draft Plan is put out to the public for comment and if anybody is aggrieved by the proposals, they can write in and they can object to the Plan. The Planning authority and the Ministry of National Development will then look at each and every one of these objections. At the same time, we are reviewing these plans every five years but in between these five years, events may change and we may need to make amendments to these plans. For example, the proposed development of the Light Rail Transport will require a complete change of the planning intentions in that area. So we need to strike this balance between certainty of the Plan and the flexibility to change.”
“I am also particularly struck by the width of one sub-clause, clause 14(2)(C), where the competent authority need not follow the Master Plan simply because the relevant land or its locality is being reviewed by the same authority. This can be a catch-all phrase that really makes the other sub-clauses, in my view, redundant. I hope that the Minister can assure the House that the new powers to deviate from the Master Plan will be carefully considered. Sir, I support the Bill.”
“At the same time, there is the aim of preserving our Asian identity and conserving our heritage. There is no doubt, therefore, that we should support a new Planning Act to allow the Minister and the relevant authorities to fulfil the task of making Singapore a world-class city with Asian qualities. Critical to this exercise is the Master Plan which, according to the Bill, will be reviewed every five years and where such a review may include re-zoning, change of plot ratios, designation of conservation areas. My concern is mainly in the introduction of the new provision in clause 14 that allows the competent authority to deviate from the Master Plan in certain circumstances. While I agree that such a provision may be necessary to provide flexibility and adaptability, it may also result in uncertainty and, indeed, monetary loss in situations where persons may have acted in reliance on the Master Plan only to find that the matter is under review and re-zoned. If, for example, land is re-zoned from industrial to residential use, the occupier or owner may find that he will need to incur additional cost in developing it to its new use. A foreign investor may find, for example, that land originally acquired or bought for industrial use may be changed to residential use and he may have to apply for additional conditions to be imposed on him because it is residential land and is subject to the requirements of the Residential Property Act. Sir, commercial transactions require certainty. Clause 14 provides for situations where there may be uncertainty. Perhaps the Minister can provide some clarification as to how these uncertainties will be minimised through procedures that provide advance notice of any review or study that is being conducted.”
“It requires a foreign person who owns vacant land originally zoned non-residential in the Master Plan but which was subsequently rezoned to residential at the initiative of the competent authority to first obtain the approval of the Minister for Law before he applies for permission to develop that land for a residential purpose. This is intended to prevent the foreign owner from by-passing the normal controls imposed under the Residential Property Act for foreign ownership of residential property. Finally, due to the different nomenclature used for computing development charges, a consequential amendment is also made to the Land Acquisition Act. Compensation under that Act will be determined with regard to the Development Baseline and not the Master Plan which in future will be the document showing future planning intention. In summary, the Bill will simplify and clarify the various provisions in the existing Planning Act as well as to make the new Act more structured and comprehensible. Other than the provisions to enhance the enforcement power, the other parts do not result in changes to current practices. Rather, they make the provisions and the powers clearer and more explicit. Question proposed. Assoc. Prof. Chin Tet Yung (Sembawang): Mr Speaker, Sir, ever since late 1822 when Stamford Raffles formed the Town Committee to prepare a plan for Singapore, we have had planning law. Of course, then, the plan was exceedingly simple. There were separate ethnic enclaves - European, Chinese, Indian, Arab and Malay. Singapore has undergone great changes over the course of the century. The Planning Bill is timely as Singapore prepares for the next century with regional centres, cultural and entertainment centres and international investment hubs.”
“To discourage developers or architects from trying their luck by carrying out works without prior permission of the competent authority, clause 34 provides for a new penalty which cannot exceed either 50 times the prescribed application fees for the relevant permission or $150,000, whichever is lower. Other changes Sir, there are two other changes to the existing Act which I would like to mention. There have been feedback that the current requirement of having to obtain subdivision approval for any lease of more than seven years of any part of a development has inhibited business operations. The Ministry of Law and my Ministry have reviewed this and have agreed to exempt lease periods of up to 14 years for certain developments from subdivision approval. This change will give owners of buildings the flexibility to grant longer leases of their development without having to subdivide their development. Clause 4(2) allows for this. Another change relates to the existing requirement for two separate permissions to be obtained for the restoration of conservation buildings; one for the development works and one for the minor decorative works. To simplify the process and improve efficiency, clause 12 of the Bill requires only one "conservation permission" for all works within a conservation area, including development works. For developments outside a conservation area, the permission required will be called "planning permission". Related Amendments to the Residential Property Act Clause 64 relates to the proposed section 28A of the Residential Property Act.”
“To ensure due compliance with the enforcement notice by the end of such extended time, provision is also made in clause 29 to allow the Minister to require security to be furnished as a condition for allowing the extension of time. This can be in the form of a banker's guarantee, which will be forfeited if the illegal activities still persist at the end of the extended time. Clause 30 provides for enhanced penalties for non-compliance with enforcement notices. The current maximum fine is $3,000. However, in many cases, the fines range from $600 to $2,000. These are insufficient to deter an offender, as planning offences could result in very substantial financial gains to the offenders. Even after conviction, some recalcitrant offenders refuse to comply with the enforcement notice and are willing to pay the daily fine that, in most cases, ranges from $10 to $50 a day. My Ministry thus finds it necessary to increase the fines to a maximum of $200,000 or an imprisonment of up to 12 months or both under clause 30. The fine for continuing offences is also to be increased from $100 per day to a maximum of $10,000 per day. Sometimes, the competent authority is required to take speedy enforcement action in urgent cases to avoid further damage caused by unauthorised uses and activities on the land. Examples are illegal excavation or dumping of earth. Clause 33 allows the competent authority to apply for a court injunction to quickly restrain an actual or impending breach of planning control. There were occasions when URA had to consider the regularisation of unauthorised building extensions.”
“This is because illegal activities are not always conducted during normal working hours. Clause 27 allows the competent authority to enter the land or building for inspection at any reasonable time, instead of only in the day time as provided in the current Act. It also allows the authority to require the occupier of the land to furnish his identity to enable the authority to identify the person responsible for the breach of planning control. This provision will enable the competent authority to act upon complaints expeditiously. Clauses 28, 29 and 30 of the Bill deal with enforcement notices and appeals against enforcement notices. Often, URA had been asked to enforce against illegal activities which disturb the neighbourhood. The complainants have often expressed their dissatisfaction with the long period taken by URA to stop the nuisance activities. The proposal therefore is to reduce the minimum period for the enforcement notice to take effect from 28 days to 14 days. This should bring about more timely action to stop such illegal activities. This is provided for in clause 28. An appeal can be made to the Minister against an enforcement notice, during which time the enforcement notice is suspended. From experience, some of the appeals have been over technical inaccuracies in the enforcement notice. When such appeals are allowed, a fresh enforcement notice has to be served all over again. Much time and effort are wasted while the illegal activities persist, to the annoyance of the complainants. In order not to delay the enforcement process, provision is now made in clause 29 to allow the Minister to correct any error in the enforcement notice, vary its requirements, or allow for more time for compliance.”
“The competent authority has, as a matter of established practice, been requiring developers to provide these links and connections to create a network of pedestrian and vehicular links within the city. Besides formalising this practice, clause 15(1)(h) enables the competent authority to require a developer to maintain and keep open these facilities to allow free access by the public as a condition of planning permission. It also makes clear that such conditions will be imposed only for the provision of such connections to facilitate public access and movement. Enforcement Powers Sir, I shall now go through the amendments relating to enforcement. The current Planning Act does not provide sufficient powers for the competent authority to carry out its enforcement work effectively and efficiently. The fines have not been updated and are grossly inadequate. It is thus necessary to enhance the enforcement provisions and penalties in the Bill. I shall now elaborate on the main changes. The competent authority's investigation into a complaint is often hampered by a lack of information, either because the owner or occupier cannot be found, or the premises are locked at the time of inspection. To improve efficiency and enable faster response to complaints, my Ministry has agreed to allow the competent authority to serve an "information notice" on the owner or occupier of the land. This will compel him to furnish information on the activities to facilitate investigation and to stop breaches of planning control. This is provided for in clause 25 of the Bill. There are penalties for not complying with the information notice. URA enforcement officers are sometimes required to carry out their investigation beyond the normal working hours.”
“As much time is needed to check the detailed calculations to determine the actual amount of development charge payable, this has sometimes caused delays in the issue of planning permission. The idea is therefore now to allow an estimated amount of development charge to be collected first through an interim order, so that planning or conservation permission could be released early. A final order for the actual amount of development charge could subsequently be collected within 12 months of the grant of the planning or conservation permission. This is provided for in clause 38 of the Bill. Vesting of land for public purpose Mr Speaker, Sir, my Ministry would like to take the opportunity of this Bill to formalise an established practice of the competent authority on the vesting of land to be used for a public purpose. Where necessary, a condition requiring the vesting of part of the land to the State for public purposes like road widening or drainage reserves is currently imposed in the planning permission. This is now explicitly provided for in clause 15(1)(f) of the Bill. I would like to assure the House that the owner of the land does not suffer any loss as he is allowed to transfer the development rights of the land vested to the remaining part of his land, subject to the planning requirements of the site. The condition to vest land to the State will only be limited to requirements of public purposes. Provision of Links and Connections to Adjacent Developments and Public Facilities Another public facility requirement is the provision of links and connections to adjacent developments or MRT stations. These are usually secured as and when development or redevelopment takes place.”
“There is a need to introduce a new term "Development Ceiling" to reflect this value for development charge purposes. The development charge payable will then be the difference between the Development Ceiling and the Development Baseline for a site. Again, this is a definitional change which does not result in any change to the present basis of determining development charge. Deviations from the Master Plan I shall now move on to the provisions of the Master Plan. The competent authority in determining an application for written permission is required to act in conformity with the Master Plan. However, occasionally, the zoning of an area in the Master Plan may become obsolete due to changes in planning intentions. The Development Guide Plans (DGPs), for example, may have proposed new ideas which are different from the Master Plan. Similarly, some sites may be affected by on-going planning reviews of the whole locality or transportation studies. Other sites may be required to be used for public purposes, like the provision of infrastructural or transportation facilities. Provision is thus now made in clause 14 to allow the competent authority the flexibility to deviate from the Master Plan when dealing with applications for written permission, but only in very limited circumstances such as those mentioned earlier, and with the prior approval of the Minister. This will ensure that confidence of the Master Plan as a guide for development is maintained. Payment of Development Charge The Bill allows the competent authority to introduce a two-stage procedure for the payment of development charge. At present, the exact amount of development charge has to be determined and paid up before planning permission is released.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." This Bill is to replace the existing Planning Act which has essentially the same provisions as those of the Planning Ordinance of 1959. Various amendments have been made to the existing Act over the years to reflect administrative changes and to meet prevailing circumstances. However, after such a long time, significant changes in the Planning Process and the present state of the physical development of Singapore have necessitated an updating of the Act. I shall now go through and explain the rationale for the main changes. Definition of "Master Plan" Sir, the term "Master Plan" in the existing Act has two different definitions. Each definition has a different usage. This has caused confusion. The first definition, retained in clause 6 of the Bill, means the original Master Plan approved in 1958 and all subsequent approved amendments to the Plan. This "Master Plan" refers to the approved development or planning intention for a site and is used to evaluate whether a proposed development could be allowed. The second definition, in section 32(4) of the existing Act, refers to the paid-up development rights of a site for the purpose of determining development charge. To distinguish the two clearly, we now propose to replace the second definition of the term "Master Plan" with a new term "Development Baseline" in clause 36 of the Bill to describe the base value more accurately. This is only a change in nomenclature which does not result in any change in substance or in practice. Development Ceiling When a developer submits a proposal for the development of a site, there will be a value associated with it depending on factors like the usage and intensity.”
“Mr Speaker, Sir, the challenge of the elderly in our society will require many different solutions. There will not be just one single solution. As regards stand-alone studio apartments, we are trying out this solution. We have also tried solutions of integrating senior citizen facilities, smaller apartments with bigger flats in Pasir Ris. That did not work out but that does not mean that we will give up. We will try again in other towns. Sir, I would say that we will continue to try different solutions and maybe under different circumstances, some of these solutions will work better. CLOSURE OF MICROPOLIS 9. Mr Inderjit Singh asked the Minister for Finance to inform the House (i) what led to the closure of Micropolis just under 2 years after Singapore Technologies acquired the company; (ii) what went wrong in the process of the acquisition; (iii) how much money was lost from the acquisition to the closure of the company; and (iv) where did the money for investment come from.”
“I thank the Member for the suggestion. I will get the HDB to consider it.”
“Mr Speaker, Sir, the studio apartment is purpose-built to cater to the needs of the elderly lessees. Within the block, lifts will stop at every floor. To facilitate the movement of the elderly and the handicapped, the access corridor will be wider with handrails provided, and steps or difference in levels around the apartments will be minimised. The studio apartments will be provided with full floor finishes, kitchen cabinets, wardrobes and other fixtures so that the elderly will be able to move in immediately without having to renovate or furnish the studio apartment on their own. Other elderly-friendly features within the studio apartments include wider doors, more spacious toilets and bathrooms with non-slip floor tiles, lever-type taps, bigger switches and support hand-bars in the toilets and bathrooms. There will also be no steps or level differences within the apartment so as to minimise the need for future modifications. The void deck will be made available for social and communal facilities and amenities to be operated by voluntary welfare organisations and commercial enterprises. Provisions will be made to allow for the installation of alarm systems in the studio apartments which will be linked to the voluntary welfare organisations.”
“Sir, as I recollect, the Government did not ask the Chairman of REDAS to give up his post. HDB STUDIO APARTMENTS FOR THE ELDERLY 8. Dr Lily Neo asked the Minister for National Development whether the studio apartments that the Housing and Development Board plans to build for the elderly (i) will be equipped in such a way as to allow the frail and elderly to stay independently in their homes, (ii) will have any alarm, surveillance and support systems built in the apartments to cater for emergency and unforeseen situations, and (iii) will have spatial or structural allowances for future modifications to allow the semi-independent elderly to live in.”
“That is not true. As property prices moved up since 1992, the Government increased land sales from 1,000 to 1,500 units, from 2,000 to 3,000, to 4,000 and then to 6,000 units. So the Government has responded each year with a larger land sales increase. Similarly, in this downturn, once we detect that there will be excess supply, it would seem rather irresponsible of the Government to continue to push out 5,000 or 7,000 units when the demand is not there. So we have moved the supply up when the demand is there and I think correspondingly, it is right for us to also cut back on the supply if the demand is soft. Mr Jeyaretnam: Sir, may I ask the Minister, although the decision was not his, what was the reason for asking the Chairman of REDAS to give up his post after the lobbying was made and the announcement of the Government?”
“The Ministry of National Development conducts regular dialogues with various groups - with REDAS, architects, engineers. We monitor the property situation closely. We were watching the reaction to the May 1996 measures and we were checking the developments in the property market. We knew that the supply that is forthcoming due to previous years' sales will result in between 10,000-12,000 units every year, and we were watching whether there will be demand to absorb this supply. In the good years, the demand easily ranged between 10,000-12,000. In 1996 and also in 1997, we expected the demand to range between 6,000-8,000 units. So curtailment of the supply for the last quarter of 1997 and a review of the 1998 supply are prudent things to do.”
“Sir, as the Deputy Prime Minister explained just now in answer to an earlier question, we made the announcement in November considering the situation then - the slower demand, currency problems up to November, less demand from foreigners, excessive supply. Since then, of course, many things have happened. We are continuing to monitor and review the situation. But as of now, the present situation and the decision of November still stand.”
“Sir, the policy adjustments on residential properties announced on 18th November are necessary to avoid aggravating the excess supply and further destabilising the property market. An unstable property market would have serious ramifications on the overall economy, especially when confidence has been affected by the prevailing regional financial difficulties. These measures were not introduced due to lobbying by the developers. They were introduced for the overall good of the nation, and not to cater to the interest of any specific group.”
“You can be quite sure that it would not be Potong Pasir.”
“We have also said that for the last seven years. The people believed that this Government would run a prudent fiscal policy and ensure budget surpluses and that the MUP will continue. That is why they voted for us.”
“We have been saying so for the last seven years.”
“The currency problems affecting the region would result in slower economic growth for Singapore which would result in smaller Government revenue and hence, smaller budget surpluses. Therefore, as a prudent measure, we have scaled down the MUP accordingly.”
“As Dr Richard Hu explained just now, the loan to Indonesia is a separate issue from the funds given to HDB for the Main Upgrading Programme. The Main Upgrading Programme is funded out of budget surpluses. So for FY 98, the Ministry of Finance expects to run a budget surplus and therefore we are allowed to continue with the Main Upgrading Programme, albeit on a smaller scale, ie, 10 precincts a year.”
“On the average, every year, we announced a launch of 15 precincts which totalled about 15,000 units. The budget for each unit is under $60,000 per unit. The actual expenditure per year depends on the progress of works from previous precincts. As you know, today, we have over 50 precincts which are undergoing the Main Upgrading Programme at different stages. So if the Member wants the specific amount that we spent last year, I will get the number for him.”
“The walkway referred to is the Kallang Park Connector. It is a long term plan by the National Parks Board to build an islandwide network of park connectors linking the various parks. Since the inception of the plan, the National Parks Board has completed 2 stretches of park connector along the Kallang River, namely: (a) a 6.8 km stretch linking the Central Catchment at Upper Thomson Road and Bishan Park to the Jalan Toa Payoh section of the PIE; (b) a 2.0 km stretch from Serangoon Road to Kallang MRT station. The National Parks Board is giving priority to build segments of park connectors to meet the needs of residents living nearby. Crossings to improve the continuous access require greater detailed planning, design and co-ordination and these are being phased in gradually when feasible. The National Parks Board will consider tunnels as well as other appropriate crossings for park connectors. The choice will depend on the traffic conditions of the surrounding roads, land availability at site and cost. The construction of the park connectors and crossings in built-up areas like those along the Kallang River is further complicated by the existing infrastructure and developments there. So far 2 crossings have been completed along the Kallang Park Connector, namely the overhead bridge at Braddell Road and the at-grade crossing along Bishan Road. More will be done in due course. CHILD ABUSE 6. Mdm Claire Chiang See Ngoh asked the Minister for Community Development, in view of the fact that in half of all child abuse cases where the perpetrators are mothers, if he will look into the causes and what can be done to protect potential victims.”
“There are 9 HDB car parks comprising 2,492 car lots in Serangoon North Avenues 1 and 2 estate. The overall season parking occupancy rate is about 96%. Hence, there are sufficient parking lots to meet the parking needs of the residents. However, there is a localised shortage in car park SE11 serving the Neighbourhood Centre. To alleviate the parking situation, HDB will construct a multi-storey car park (MSCP) with about 48 lorry lots and 289 car lots at the vacant site next to Blk 151 Serangoon North Ave 2. The MSCP is expected to be completed in the second quarter of 1999. WRITTEN ANSWERS TO QUESTIONS MINORITY REPRESENTATION IN PUBLIC LISTED COMPANIES 1. Mr Shriniwas Rai asked the Minister for Finance if he will consider amending the law to allow for minority representation in public listed company.”
“The Government is encouraging employers to implement the new retirement age as and when they are ready to, even before the legislation comes into effect. The Civil Service is currently studying how to implement the extension of the retirement age. If we are ready to implement the extension before 1st January 1999, we will do so. MINISTRY OF INFORMATION TECHNOLOGY 43. Dr Toh See Kiat asked the Prime Minister whether he will consider having a Ministry of Information Technology to better plan, co-ordinate and implement the development and use of information technology.”
“There are 183 shops, 5 eating houses and 77 occupied cooked food stalls in the old Woodlands Town Centre. The Town Centre serves the residents, workers in the neighbouring factories and other visitors. The pricing and rental of HDB shops and stalls has to be determined by the general market conditions. It is not practical to consider each individual factor like the traffic congestion at the Causeway and give discounts. With regard to the rent of shops, HDB has, on 14th November 1997, announced a package of measures to assist HDB shop tenants in managing their business costs. For tenants currently paying above today's market rents, HDB will adjust the rents downwards to the prevailing market rents as at 1st December 1997, subject to a maximum reduction of 10% of their existing rents. Also, for fixed-term tenancies that are at or going for their third renewal, HDB will moderate the rent further such that the annual increase, as well as the maximum rent at the third renewal, is reduced further. Eligible shop tenants in Woodlands Town Centre will therefore benefit from this package. On the proposal to allow vehicles to enter the Woodlands Town Centre car park via the current exit at Woodlands Centre Road, HDB will work with LTA on its feasibility. VOLUNTARY EXTENSION OF RETIREMENT AGE TO 62 41. Mr Cyrille Tan asked the Prime Minister whether the Government, civil service, statutory boards and government-linked companies will take the lead in voluntarily extending the retirement age to 62 years prior to its implementation on 1st January 1999. Mr Goh Chok Tong: The Government has accepted the recommendations of the Tripartite Committee for the Extension of the Retirement Age to extend the retirement age to 62 years from 1st January 1999.”
“The response to the first batch of shops in Bedok, Bukit Gombak and Yishun towns sold on 30-year leases in August 1997 has been very encouraging. The take-up rate is about 97%. In view of the good response, HDB will continue to offer about 200 shops for subsequent sales at 30-year leases in various estates. As for the sale of shops in Bukit Gombak, I have asked HDB to consider the MP for Bukit Gombak's request to include some shops in his constituency for the future sales. PRICE FIXING AND RESALE PRICE MAINTENANCE 35. Dr Toh See Kiat asked the Minister for Trade and Industry whether there are plans to ensure that the practice of price fixing by monopolies and cartels and the practice of resale price maintenance by distributors and manufacturers are abolished.”
“Mr Ang Mong Seng asked the Minister for National Development, in view of the good take up rate of the Sale of Tenanted Shops Scheme (on 30-year Lease), (i) whether he has any plans to expedite the sale of shops to sitting tenants, and (ii) whether he will consider selling the remaining shops in the Bukit Gombak Constituency in the next exercise.”
“HDB flats are sold under the home ownership scheme for owner occupation. HDB had previously exercised flexibility and allowed lessees who sublet their whole flats under the Approved Subletting Policy to include the subletting period as part of the minimum occupation period. Unfortunately, this had led to abuse. Some lessees bought flats from HDB or from the open market, rented them out, and subsequently sold the flats, without ever physically occupying them. The HDB flats were used for capital gains and rental income. Under the recent revised policy, HDB has imposed the requirement that all lessees must fulfill the minimum period of physical occupation before they are allowed to sell their flats or apply for the second new HDB flat. Those who have sublet their flats are required to make up for the period of subletting by physically occupying the flats. The revised policy will not affect genuine home buyers who purchase flats for their own occupation. It will, however, deter those who intend to use the HDB flat as a form of investment for rental income and capital gain. Nevertheless, HDB will exercise flexibility for flat lessees who are posted overseas on official duties. Flexibility will be granted to employers and employees of locally-owned firms and MNCs, who are required to go overseas on official duties. It will also be extended to employees of GLCs, Statutory Boards and civil servants. These flat lessees will be allowed to include the period of subletting of whole flat in the computation of the minimum occupation period, subject to a maximum of 3 years for direct-purchase flats and 1.5 years for resale flats. SALE OF SHOPS TO SITTING TENANTS 34.”
“The decision to carry out major upgrading works to the common areas in private condominiums can be effected by passing a special resolution at general meetings. Under the Land Titles (Strata) Act (LTSA), a special resolution will be passed if the total number of votes cast against the resolution is not more than 25% of the total value of the votes cast. As such works are costly and require a large capital outlay from the sinking fund or even additional contributions from the owners, the requirement is not unreasonable. My Ministry therefore does not see the need to amend the current position. 5-YEAR OCCUPATION PERIOD FOR HDB FLATS 31. Mr Yeo Guat Kwang asked the Minister for National Development if he will review the latest Housing and Development Board's policy so that the period a HDB apartment is rented out due to the owner's need to be stationed overseas will be considered in the 5-year occupation period, otherwise Singaporeans heeding the Government's call to regionalise and globalise will feel penalised.”
“Mr Speaker, Sir, my Ministry is conscious of the fact that Singapore will always be dependent on imports for most of our food requirements. To be overly dependent on any one source will subject Singaporeans to uncertainties in supply and higher prices. Primary Production Department (PPD) already has an on-going programme to diversify our sources of fresh food. Imports are encouraged from as many countries as possible as long as they fulfill our safety requirements. PPD works actively with our local importers to look out for new sources which can provide a regular supply of fresh food at an affordable price. PPD's food sourcing programme which actively accredits new sources of safe fresh food offers the flexibility and opportunities to our importers to diversify their sources and suppliers. Let me assure the House that PPD will continue with its diversification programme, and ensure that any shortfall in fresh food supply from any source can be quickly replaced by other sources. SINGAPOREANS SHOPPING IN JOHOR BARU (Loss in GST revenue) 8. Assoc. Prof. Chin Tet Yung asked the Minister for Finance whether he is aware that as a result of the sharp depreciation of the Malaysian ringgit, large numbers of Singaporeans have been crossing the Causeway to shop in Johor Baru, causing a severe drop in business for Singapore retailers, especially those in Woodlands and, if so, whether he has an estimate of the loss in GST revenue arising from this; and whether, in view of this, he will review the GST exemption limits on goods brought into Singapore, to reduce this revenue loss and to encourage Singaporeans to shop in Singapore.”
“Tampines Neighbourhood 7 is currently served by 3 mini-marts. The existing marketing facilities available in Neighbourhood 8 are being expanded to include a new market, which is currently under construction. The estimated completion date is March 1998. When ready, it will serve the residents of Neighbourhood 8 and part of Neighbourhood 7. Thus, HDB has no plan to build a wet market in Neighbourhood 7. If the residents would still like to have a supermarket, the best option would be to build the supermarket at the lowest deck of the multi-storey car park at Block 730A, Tampines St 71. This is because the neighbourhood is already built up and there is no suitable void deck space to build the supermarket. However, about 30 parking lots in the multi-storey car park would have to be removed to accommodate the supermarket. If the MP and the residents are agreeable to convert the parking lots into a supermarket, HDB can proceed with the design and construction. Residents can then expect the supermarket to be ready by end 1999. WRITTEN ANSWERS TO QUESTIONS NASSIM JADE AND SCOTTS 28 APARTMENTS 1. Mr J. B. Jeyaretnam asked the Prime Minister whether there are officers in the public sector, i.e. government and statutory boards, who had bought apartments in Nassim Jade and Scotts 28, either in their names or in the names of their spouses and/or children, at price discounts not available to the general public, giving the names of the officers and the posts held by them.”
“Some Town Councils have replaced the sand pits in their existing playgrounds with rubber flooring for easier maintenance. HDB has therefore written to all Town Councils on 4th August 1997 asking them to indicate their choice of flooring for new playgrounds so that new playgrounds can be provided with the Town Councils' preferred flooring. This will cut down on unnecessary wastage. So far, all the Town Councils who have responded prefer the cast-in-situ rubber floor mats. HDB will therefore provide such flooring for the new playgrounds built within the boundaries of these Town Councils. GUIDELINES FOR SETTING UP COMMUNITY CLUBS 19. Mr Sin Boon Ann asked the Minister for Community Development what are the present guidelines relating to the setting up of community clubs and whether the Government will be flexible in following the guidelines when considering requests for community clubs from constituencies which do not strictly qualify within the guidelines.”
“HDB conducted two tender exercises to lease out the new market located at Taman Jurong Shopping Centre (Block 399 Yung Sheng Road) to a single operator for a lease period of 30 years. However, there was no successful taker. HDB is looking into other ways of renting the market. In the interim, residents can patronise a market cum food centre in the nearby Corporation Drive located at Jurong West Neighbourhood 1. There are also one supermarket, 47 retail shops, 4 eating establishments and 1 food centre operating in the Taman Jurong Shopping Centre. MOSQUE IN JURONG WEST 3. Mr R. Ravindran asked the Minister for Community Development and Minister-in-charge of Muslim Affairs whether a new mosque will be built in the Jurong West area.”
“HDB's approach to rubbish clearance is to mechanise the collection so that much of the back-breaking work is eliminated. HDB puts up regular circulars about its findings and recommendations. Many of the PAP Town Councils have adopted them to tile the collection area so that there is very little sullage and smell, and to mechanise the collection. These circulars are also freely available. If he wants to do major structural works, the Town Council can put in its recommendation and HDB can study it. He wants to enlarge the chute, we can also study it. But HDB's finding so far has been that most of the hard work is in the pulling out of the trolley and in the mechanisation of the carriage of the rubbish, and that is the recommended solution to all the Town Councils.”
“Mr Chiam wants us to go to Potong Pasir and knock the rubbish chutes to make them bigger. Is that what he was suggesting?”
“I know spalling concrete is a big problem in Yuhua because Mrs Yu-Foo will catch hold of me every time she sees me to complain of the spalling concrete and she will give me letters of all the cases that she has put up. In Potong Pasir, I have asked HDB how many such cases they have received from the MP. And HDB told me that in the last four years, they have received a grand total of four appeals from Mr Chiam. So I do not see spalling concrete as a big problem. Perhaps, if Mr Chiam were to write more vigorously about all the cases, then we will understand that there is a big spalling concrete problem in Potong Pasir. On industrial factories at HDB blocks' ground level, we indeed do recognise the problem and HDB is taking a major programme to rebuild new industrial premises. We are now reviewing the relocation programme for industrial premises at the void decks and when these new factories are available, we will allow these existing premises to be relocated.”
“In the newer estates, we have centralised rubbish chutes where the collection is done mechanically. We are also trying out as a pilot project a pneumatic refuse collection system. This is being done now, I believe, in Chua Chu Kang, and we are testing to see whether it is viable. For the old estates, however, to retrofit a pneumatic rubbish collection system will be a very, very capital-intensive and very expensive programme. So we have to assess very carefully whether this can be done. If Mr Chiam wants a quicker solution, I think the best way is to seal up all the individual chutes and ask his residents to bring the rubbish to a central collection point. Then I think, working together with the residents, he can solve his rubbish clearance problem. But a mechanisation solution will take much longer. If Mr Chiam wants, I can send my people down and seal up all the rubbish chutes in Potong Pasir. Then everybody cooperates by bringing down the rubbish and he does not have to use workers to clear his rubbish. On spalling concrete, let me stress that this is not HDB's design faults. I have explained many times in this House that spalling concrete is a natural process of carbonisation. Concrete by its nature is porous. Over time, moisture gets in. The iron bars in the concrete get rusty. It increases in bulk. As a result, it breaks up the concrete. We have a project to repair all the spalling concrete on a goodwill basis. That has been completed. In 1995, the Government announced another programme which would assist home owners to repair the spalling concrete on a cost-sharing basis. This will run for three years and will be completed by July 1998. I was not under the impression that spalling concrete is such a big problem in Potong Pasir.”
“What we want to do is to make sure that the tenants of existing dry produce shops agree that we build another wet market, so that there is no excessive shop space for the wet market produce, and if there is also a space for doing so. 4.00 pm In Cheng San, for example, we have three wet markets. Another wet market is presently being constructed in Sengkang Neighbourhood 1. In response to Mr Heng Chiang Meng's request, HDB will be providing another wet market in Serangoon North Neighbourhood 5. The design is in construction. It is scheduled to start in July 1997. In Mr Zainul's case, we will look at his request to build the wet market near Punggol Primary School. Upgrading of markets in MUP - the philosophy is that when we undertake the Main Upgrading Programme, we upgrade the residential units. Commercial units do not enjoy the large subsidies from Government under the MUP. The reasoning is that the commercial units will enjoy the subsidies under the Sale of Shops or Sale of Stalls Scheme. They enjoy a 30% discount, up to $96,000, and therefore it will not be fair to sell them the shop or the stall with a big discount, and at the same time upgrade the shops and stalls with another big subsidy. So under MUP, the upgrading will be done by the shopkeepers or stallholders in conjunction with the Town Councils and HDB. So if you have a wet market in a MUP and you want to upgrade it, it will be a cost-sharing project. You can apply for funds under the CIPC. The Town Council will have to put in a contribution. HDB will contribute some funds based on the life cycle cost of some of the big items and the stallholders will also have to contribute because this is a commercial property. Rubbish chutes - Mr Chiam complains about clearing of rubbish and he asks for mechanisation.”
“If you buy a flat from HDB and you sell off the flat, and you do not apply for a second flat from HDB, in fact, you do not pay any levy. So the resale levy is not a capital gains tax, unlike the situation in Hong Kong. In Hong Kong, they sell you a flat and at the point of selling you the first flat, they estimate what is the market subsidy as a percentage of the market price. So if the housing authority sells you a flat and is 30% subsidy from the market price, and the occupation period is 10 years, unlike Singapore where it is 5 years, when you do sell your flat 10 years later, the Government will tax you at 30% of the resale price. So that is a capital gains tax. In Singapore, in fact, we are very generous. You buy the first flat from the Government and when you sell it off after five years, you keep all the capital gains. There is no capital gains tax. But if you want to apply for a second new flat from HDB, then we say the second bite should be smaller than the first bite. Therefore, you should pay part of the price of the first flat so as to make the second bite smaller. So the situation is very different and therefore we do not see the need to have the resale levy decreasing or graded according to the length of stay. The resale levy is meant to make sure that the second subsidy is smaller than the first subsidy. On hawker centres and markets, since 1992, HDB has started to build wet markets again. Before that, we had the so-called dry markets which did not end up so dry. So for every area where we have provided the dry market, and the MPs wish to re-introduce the wet market into their estates, HDB will consider every request.”
“Sir, first of all, on the Executive Condominium Secheme. As Members know, we introduced the Executive Condominiums so that we can build properties with certain restrictions targeted at families earning below $10,000. Mr Chng Hee Kok raised the issue of the developer in Windermere who provided very large flats and whether MND would consider some restrictions to prevent developers going that way. Sir, the main control would be that every developer tendering for the EC can only sell to households having $10,000 and below. I think that is the best control. I doubt whether with that kind of household income there will be a very big market for very big units to be priced at the level that $10,000 household families can afford. In this particular case in Windermere, what has happened is that the developer provided four very big units incorporating the roof top terraces and, as part of his marketing, he enclosed this space, terraced the void spaces and marketed it at $1 million. I think the market for such units would be very small. MND is monitoring the situation. If indeed there is a trend of developers going for very large units, then we would consider putting some restrictions. But for the time being, I think this is a very niche market which the first few developers are able to capitalise. But as the system gets into a steady state, we will see the developers providing sensibly small flats for which households with less than $10,000 can afford. So I would urge Members not to insist on restrictions at the first sign of developers building big units. I think the trend would clearly show itself. On the resale levy for upgraders, let me explain that the resale levy is in fact a misnomer. The levy is only imposed if a person applies for a second new flat from HDB.”
“Sir, first of all, let me explain that conservation is not preservation. We have more limited objectives when we conserve the various districts. It is not possible for us to recreate the lifestyle of the past in our conservation areas. We recognise that we should not just restore the architectural merits of the conservation areas, but we should try and bring back some of the character and identity of the conservation areas. To this end, URA works with the various agencies, eg, to bring back some traditional trades and cultural performances. For Chinatown, URA is also working with STPB to see whether a few units in the historical districts can be developed into interpretive centres to cover the history of the migrants in the area. STPB is considering the idea of setting up an interpretive centre at Pagoda Street which will recreate the lifestyle of the early migrants in Chinatown. This will also serve as an introduction to visitors to Chinatown before they embark on the Chinatown walking tours. For the Kampong Glam area, not only the 35 shophouses at Bussorah Mall have been completed, the entire conservation would encompass the Istana Kampong Glam and other buildings in the area. A total of 622 buildings within the Kampong Glam historic streets, with historical as well as architectural significance, have been designated for conservation. URA is working with MITA and Ministry of Law to try and finalise the plans for the restoration of the Istana Kampong Glam.”
“And we hope that if deep sea fishing is successful, up to 40% of our fish can be produced locally. Mr Leong Horn Kee: Sir, I wish to thank the Minister and the Parliamentary Secretary for their very patient answers to all the MPs' questions and also for being so considerate. Many proposals are under consideration. On that note, I beg leave to withdraw the amendment. Amendment, by leave, withdrawn.”