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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“The premium scheme represents a very big loophole for the lessees of big flats. For example, under the resale levy scheme, lessees of a 5-room flat has to pay a 20% levy. But they are allowed to pay, also as an option, a 10% premium on the next flat. So when they buy another 5-room flat, they will only pay a 10% premium of the second flat which will amount to a little over $20,000. This represents a very big loophole and, therefore, owners of big flats will all opt to pay for the premium and, in so doing, pay a very small premium for the second flat. The second subsidy they enjoy, therefore, is not very much smaller than the first subsidy enjoyed by first-timers. To make it more equitable and to rationalise the subsidies for all first-timers and upgraders, we have decided to remove the premium so that lessees of big flats will pay the requisite levy when they upgrade to another flat.”
“Mr Speaker, Sir, as I have explained, the resale levy is not a capital gains tax and therefore this idea of varying it depending on the term of the occupation of the flat does not apply. Those who buy a flat from the HDB for the first time enjoys a substantial subsidy. Those who buy a flat for the second time enjoy this same subsidy, which is not fair to all those who have not either enjoyed a subsidy or who have not enjoyed the second subsidy. So to make it more equitable, the second subsidy on the new HDB flat ought to be smaller than the first flat. Hence, the idea of a resale levy so that you will buy the flat from HDB and enjoy the first subsidy. The second time you buy a new flat, your subsidy ought to be smaller than the first subsidy. Dr S. Vasoo (Tanjong Pagar): I want to ask the Minister why did HDB discontinue the premium scheme?”
“Mr Speaker, Sir, although we term it as a "resale levy", the resale levy is only applicable to those who want to buy a second flat from HDB. So the resale levy is not a capital gains tax. It is not a profit-sharing tax. It is not a levy on resale flat. The resale levy is only incurred if somebody has bought a first flat from HDB and wants to buy a second flat. So on the case that the Member has raised of somebody buying a resale flat, when he sells his flat it does not incur a resale levy.”
“Mr Speaker, Sir, in April 1997, the revised mortgage financing policy was announced to bring the mortgage financing policy for HDB flats closer to market practice and to rationalise the subsidies for the purchase of HDB flats. The revised mortgage financing package included measures such as credit assessment which would instil greater financial prudence and discipline among buyers of HDB flats. In May 1997, new measures were announced to manage the demand for new HDB flats. There are already 150,000 applicants on the HDB queue and the waiting time for new HDB flats is becoming too long. The new measures are necessary to re-prioritise the demand for new HDB flats so that HDB can cater to applicants who are in more urgent need of the HDB flats, especially first-timers who are waiting for the HDB flat to set up their homes. The recent announcements of changes addressed the two key issues in public housing policies. My Ministry would monitor the situation and would make adjustments to our policies where necessary.”
“Mr Speaker, Sir, HDB, as the public housing authority, has a mission to help Singaporeans own their first flat. In the case that the Member raised of a family who is renting a flat for some time and later on is able to afford either a new flat or the flat that he is staying in, HDB will consider such cases favourably. Even if the head of the family is in the mid-40s, HDB will extend the period of the loan to allow him to buy over his rental flat or to buy a small HDB flat for the first time. CHANGES IN PUBLIC HOUSING REGULATIONS (Objectives) 3. Mr Leong Horn Kee asked the Minister for National Development what are the objectives of the recent announcements of changes in public housing regulations and whether he intends to introduce further changes in public and private housing policies.”
“Mr Speaker, Sir, older applicants can include additional family members such as their children as flat lessees or occupiers. In such cases, the age of the youngest joint purchaser will be used in the computation of the maximum loan repayment period. The combined incomes of all the purchasers will also be used to determine the maximum loan quantum. There are also other existing provisions for older applicants who have been allocated new HDB flats. In line with the Government's objective to help low-income applicants, HDB is exempting the low-income families from credit assessment. Therefore, older applicants who are buying 3-room or smaller flats direct from HDB as well as those who purchase flats under HDB's Low Income Family Incentives Scheme would be exempted from credit assessment.”
“Except for the covered walkway linking Block 838 Yishun Avenue 2 to bus stop/overhead bridge, all the other covered walkways named in the question were constructed by the various CCCs using funds from the Community Improvement Projects Committee. The covered walkway at Block 838 Yishun Avenue 2 was constructed by the Land Transport Authority at the request of a CCC. The requested data are shown in the table below: Project CIPC Covered walkway at CCC Cost Funding $ $ Blk 151 Yishun Ave 5 Chong Pang 53,286 47,957 Blk 174 Yishun Ave 7 " 44,954 40,459 Blk 201/202 Yishun Central Nee Soon East 84,404 75,964 Blk 220 Yishun Ave 2 " 97,482 88,462 Blk 322 Yishun Ring Rd " 61,889 55,700 Blk 419 Yishun Ave 11 " 54,994 50,385 Blk 776 Yishun Ave 3 Nee Soon South 21,756 19,580 Blk 838 Yishun Ave 2 " NA NA Blk 858 Yishun Ring Rd " 30,858 27,772 table - NUMBER OF DOMESTIC CUSTOMER ACCOUNTS BY TYPE OF PREMISES IN THE VARIOUS CONSUMPTION BLOCKS AS AT SEP 1996 (Cols. 851 - 852)”
“The footpath between Yishun MRT station and Blk 749 Yishun Street 72 is a temporary footpath across a piece of State land reserved for future development. There are no plans, as of now, for the reserve site. However, it will be a waste of public funds to construct a temporary walkway shelter with lighting over the footpath and demolish it in a few years' time to make way for development. WALKWAYS/SHELTERS IN YISHUN FUNDED BY THE COMMUNITY IMPROVEMENT PROJECTS COMMITTEE 8. Mr Cheo Chai Chen asked the Minister for National Development whether the following walkways or shelters were constructed using funds from the Community Improvement Projects Committee and, if so, how much was funded individually: (i) Block 151 Yishun Avenue 5 to bus stop; (ii) Block 174 Yishun Avenue 7 to bus stop; (iii) Block 201/202 Yishun Central to bus stop; (iv) Block 220 Yishun Avenue 2 to bus stop; (v) Block 322 Yishun Ring Road to bus stop; (vi) Block 419 Yishun Avenue 11 to bus stop; (vii) Block 776 Yishun Avenue 3 to bus stop; (viii) Block 838 Yishun Avenue 2 to bus stop/overhead bridge; (ix) Block 858 Yishun Ring Road to bus stop.”
“Sir, under the Registration for Flat System, the applicant will apply for a flat in a zone, whether he applies for the North Zone, North East Zone or the West Zone. Somebody who applies for a 4-room flat in the West Zone will be invited to select a 4-room flat when his queue number is due. At every selection exercise, we try to put 4-room budget flats available for selection. Therefore, a person who wishes to buy a 4-room budget flat will select a flat in the zone that he has applied for. This holds true whether it is in the West Zone, North East Zone which includes Sengkang, and in the North Zone which includes Woodlands and Yishun. BILLS INTRODUCED SALE OF GOODS (AMENDMENT) BILL "to amend the Sale of Goods Act (Chapter 393 of the 1994 Revised Edition)", presented by the Senior Parliamentary Secretary to the Minister for Law (Assoc. Prof. Ho Peng Kee); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. SUPPLY OF GOODS (AMENDMENT) BILL "to amend the Supply of Goods Act (Chapter 394 of the 1994 Revised Edition) and to make a minor amendment to the Unfair Contract Terms Act (Chapter 396 of the 1994 Revised Edition) in relation to contracts for the supply of goods", presented by Assoc. Prof. Ho Peng Kee; read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. CONSTITUTION OF THE REPUBLIC OF SINGAPORE (AMENDMENT) BILL Order for Second Reading read. 12.58 pm”
“Mr Speaker, Sir, HDB will continue to build 4-room budget flats in all zones including the North East Zone and in estates like Punggol and Sengkang. Applicants in the 4-room flat register whose registration numbers are due for selection of flats will be invited to select 4-room flats, which will include 4-room budget flats. They will select flats in the zones that they have applied for.”
“Some of these organisations are statutory bodies but with privatisation, for example, TAS has become Singapore Telecom; PUB has become Singapore Power. Community-based organisations refer to CDAC, Mendaki and SINDA. They may require some improvements and we do not want this fighting over levying of charges. The proposal in the amendment is to lock up 100% of the surpluses in the sinking fund. The reason why we have the 80% is that we recognise that MPs do deserve credit for building up the surpluses and when they start off the new term, they should enjoy part of these surpluses. That is why we allow a 20% to be carried over. I would have preferred locking up everything, 100%. But discussing with my colleagues here, they put up a very strong case that if the same party continues a second term, surely they must get some credit for use of the old surpluses, and that is why in this amendment, we propose 20% to be carried over and, as I have explained earlier, 20% in the normal term of the Government will be equivalent almost to the surpluses of one year. So that is enough to start you off. That is the explanation for the 80%. 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. VERIFICATION OF HEALTH CARE SUBSIDY OF GOVERNMENT POLYCLINICS AND PUBLIC HOSPITALS (Motion) 3.52 pm”
“But covered walkway is a standard requirement and I am surprised to hear that he faced difficulties. I am sure Mr Chiam - he is not here - has put up many covered walkways in Potong Pasir and I do not believe he faced any difficulties getting permission. I do not believe Mr Low Thia Khiang has put up many covered walkways. So he also does not face great difficulties. Mr Low asked which agent will HDB exempt and whether a HDB contractor will be deemed as a HDB agent. Let me assure the Member that we will exercise these powers judiciously. The amendment is meant for HDB when HDB goes in to upgrade the estate, for example. We need to clarify the relationship about HDB going back into the town, ie, the common property, to do the space-adding item. HDB contractor is doing so. We do not want the Town Council to say, "Look. You are now coming into the common property. We impose $1,000 per day for you to do works on the common property." So the amendment is to establish the relationship. It is not intended to impose additional burden on the Town Councils.”
“Mr Speaker, Sir, Mr Low Thia Khiang asked whether my Ministry will release the study of cyclical works. In fact, I would encourage every Town Council to do this study on their own. They would know what they are required to do to undertake the cyclical works over the next five and 10 years. I would urge Members to do a cash flow analysis of their sinking fund situation over the next five to 10 years. I am sure some Members have done so and some Members must have realised that they need to build up their sinking funds to a better level to be able to meet the increasing cost of cyclical maintenance in the future. The second point he asked was: why is it necessary to seek the approval of HDB to maintain or establish facilities on the common property. This is a similar point that Mr Ling How Doong raised. We had this debate some time in the past. The amendment is to establish the fact that the common property in the HDB estates belongs to HDB, the landlord. The Town Councils were established to maintain the common property. The Town Councils do not own the common property and therefore the amendment is to establish in no uncertain terms the relationship between a Town Council and HDB. You will need the written permission of HDB as the landlord to maintain or establish new facilities within the estate on the common property. Some Members raised examples of some improvements or some changes which they wanted to do but which did not get the expeditious reply from HDB. I will be happy if they send me the details and I will get HDB to explain the time taken. Mr Ling, for example, wanted to know why the wishing well took so long. Perhaps if he has his wishing well, it will come faster.”
“So we want to make it clear that the Town Councils have no authority to levy charges on HDB because the Town Councils are only managing the common property. They do not own the common property. The common property remains the property of HDB.”
“If you look at the annual reports of the various Town Councils, the Town Councils run by the PAP MPs have accumulated significant surpluses, many of them ranging beyond $15 million and we are locking this up and putting it aside in the sinking fund. The whole purpose is, in fact, to depoliticise some aspects of the Town Council operations. As Mr Chng Hee Kok pointed out, by locking this up, it would prevent candidates from offering all kinds of promises on the basis of the past surpluses. So it would not be possible, for example, in the run-up to the general election, for candidates from any party, to say, "Look, this XYZ Town Council has $15 million accumulated surpluses. If I am elected, I would do this, that or the other." If he is elected, he would have to demonstrate that he can do this, that or the other on his own merit, not on the $15 million accumulated by the previous management. So this will depoliticise the process and do away with empty promises. Mr Low Thia Khiang asks why improvements to facilities need HDB's permission. This is a long standing principle. HDB is the landlord of HDB estates and any changes to the estate will require the landlord's endorsement. HDB does this fairly quickly. As long as it is within the prerogative of the Town Councils, you can be assured of the cooperation of HDB. The other point that Mr Low made is: why is it necessary that some of the activities that the Town Council carries out no charges should be levied on HDB or agents appointed by HDB. These are some of the teething problems that we have in the past where HDB, as the landlord and developer, wants to go back to the town and undertake improvement projects.”
“So the amendment here is to make a special provision for a general election. We would like the elected Members to constitute themselves in a Town Council within eight days so that we minimise the period in which parts of the estates are run by the previous Town Council. I agree entirely with Mr Chng Hee Kok that over time the sinking fund will affect the resale value of HDB flats. I hope Singaporeans will become more sophisticated when they do a resale transaction and they not only look at the improvements within their flat and the estate around the flat, but they should also call for the annual report of the Town Councils to find out how much is in the surplus and how much is in the sinking fund. This is because if the sinking fund in the Town Council is not sufficient, when the time comes, you have to cough up the one-time contribution. So I agree with him entirely that the balances in the sinking fund would affect the resale value when Singaporeans become more sophisticated in their transactions. Mr Low Thia Khiang made three points and argued that this amendment ignores the voters' view to give the MP the mandate to run the Town Council. This is not true. The Town Councils would still be run by the elected MPs in the way that they deem fit for the benefit of their residents. What we would like to do is to make sure that we do a medium term projection and make sure that every Town Council has enough sinking fund balances to pay for impending cyclical maintenance works. Beyond that, you can run your Town Council, you can do improvement projects and, as I have explained earlier, there is enough funds for you to do so. The Act will be implemented for both the ruling party and the opposition party. If anything else, more money would be locked up from the ruling party.”
“So this will be implemented reasonably so that every Town Council will continue to be able to do the improvement projects that they have undertaken. When he goes into the next term, he will still have a reasonable start to do the various projects he wants in his town. But the primary objective of safeguarding as much of the accumulated surpluses in the sinking fund must be maintained. The commitments to cyclical works will be very heavy in the years to come and we want to set aside the funds for it In response to Mr Chew Heng Ching, I will say that although the Ministry of National Development encourages every town to have a 5-year improvement programme so that we can work closely together to dovetail the development projects in the town, the priority for the Town Council remains the cyclical works and the sinking funds. Only when enough funds have been put aside in the sinking fund should we then undertake the improvement projects. So I think all of you should strive for the same priorities by making sure that sinking funds are catered for first so that our future requirements for cyclical works are met, and whatever is in surplus of that, we can undertake improvement projects. Mr Chng Hee Kok asked about clause 3(a) and whether that would apply to a by-election. Clause 3(a) is intended as an addition to the existing sections in the principal Act whereby the Minister has the powers to allow recomposition of the Town Councils at any time, as we did when Nee Soon South decided to join up with Ang Mo Kio Town Council. So the Act already allows the Minister to recompose the Town Council and therefore whether it is in a by-election or any time during the term there is flexibility for us to reconstitute the Town.”
“We recognise that if the MP from the same political party is re-elected, that political party should have some credit for its work done in the previous term. Therefore, we propose that 80% should be locked up and 20% should be carried over to the next term. In a typical 5-year term, 20% is equivalent to almost one year's surplus. So that gives the MP of the same political party a good start, whether it is the ruling party or the Opposition party. It gives him a reasonable start. In the new term, he gets 20% of his previous surpluses, which is one year's worth of surplus. Also, the amendment only locks up the accumulated surpluses as of the fiscal year before the writ of election. For example, if an election is called between now and April, ie, before the next fiscal year, in fact, he will be enjoying the surpluses of this current year plus 20% of his accumulated surpluses, which is one more year's worth of surpluses. So if he is re-elected from the same party, he goes into the next term with two years' worth of accumulated surpluses. I think that is enough to start him off on any improvement projects for his town. I would also like to assure Members here that when we finalise the regulations for this amendment, we will recognise contractual obligations of each town for the various improvement projects that the town has embarked upon at the time the Act comes into effect. I am sure many of you have medium term plans of improving the towns and some of you have entered into contracts on some of these improvement projects. We will recognise these commitments and these will be taken out from the surpluses that have been locked up.”
“Mr Speaker, Sir, let me first thank Mr Chng Hee Kok and Mr Chew Heng Ching for their support of the Amendment Bill. Let me first reiterate what I said about the proposal to transfer the accumulated surpluses to the sinking fund. I do not want to conjure the picture of impending crisis in the sinking fund. But my Ministry has done a cash-flow analysis for the next five years, ie, the commitment that is needed by the Town Councils to do what is necessary for cyclical works and there will be a shortfall in the sinking funds. So we need to find some ways to top up the sinking funds. At present, many Town Councils enjoy large accumulated surpluses primarily because of the grants being given by the Government to the operating funds. So the best way to top up the sinking fund is to transfer these surpluses to the sinking fund. The other way is of course to impose a higher percentage of S&C charges into the sinking fund. We raised this to between 30% and 40% in 1993. We can always raise this further but I think that would limit the flexibility of the Town Councils even further. So the whole idea of transferring the surpluses to the sinking fund is not political in nature. It is sound, prudent financial management. Because when the crunch comes and the Town Councils have to change the lifts or undertake major repairs and the sinking fund is not sufficient, the Government will not come in to bail out the Town Councils. The Town Councils will have to levy a one-time charge on the residents and that is something which I am sure all of us, as MPs, want to avoid. So this is a prudent change. Why transfer 80% to the sinking fund if it is the same party, and not 100%?”
“Clause 12 amends section 45 to provide that penalties for late payment of Service and Conservancy charges and other fees may be recovered by a Town Council in a Small Claims Tribunal as if the penalties are moneys payable under a contract for the provision of services. Conclusion In summary, the amendment on transfer of Town Councils' surpluses to their sinking funds works on the same principle as the locking up of the country's past budget surpluses at every change of Government. It would enable Town Councils' surpluses to be safeguarded for approved uses. It also protects the residents so that they need not make big lump-sum contributions for cyclical maintenance works. This is another step to ensure a more secure future. The other amendments proposed in the Bill are technical amendments to clarify and expand on some existing sections in the Town Councils Act. They would allow Town Councils to perform their functions more efficiently and effectively. Sir, I beg to move. Question proposed.”
“Clause 4 amends section 8 to clarify that the number of appointed members of a Town Council shall be determined according to the number of Members of Parliament required to represent the constituencies comprised in that Town. Clause 5 amends section 12 to clarify the appointments of the Chairman and Vice-Chairman of a Town Council. Clause 6 amends section 19 to clarify certain powers of Town Councils. These powers relate to the provision and maintenance of facilities only on common property within the Town, the imposition of charges for such use of the common property, the management of food centres and markets of the Housing and Development Board and the undertaking of agency works on behalf of public authorities or community based associations within the Town. Clause 7 amends section 24 to empower Town Councils to make their own by-laws subject to the power of the Minister for National Development to disapprove any of them within a one-month period after the by-laws were gazetted. The clause also increases the maximum fine for breach of any by-law from $1,000 to $5,000. Clause 8 amends section 33 to enable a Town Council to transfer moneys from the funds in the Town Council Fund relating to a privatised HDB estate to the management corporation for that estate. Clause 10 amends section 43 to allow the employees and agents of a Town Council to enter any flat to estimate the value of any movable property so that it may seize and sell to recover outstanding Service and Conservancy charges. Clause 11 amends section 43E to raise the maximum fine that a Town Council may offer in compounding an offence from $400 to $1,000.”
“A new MP from another political party should not ride on the sound financial management of the Town Council under the guidance of the previous MP from a different political party and use the surpluses to carry out the improvement works. The new MP should build up his own surpluses to finance his own improvement projects. He has to prove that he is capable of managing the funds to the residents who elected him into office. The provision in this Bill will apply uniformly to all political parties. The proposed transfer of Town Councils' surpluses to their sinking funds would, in fact, depoliticise the use of Town Councils' surpluses. Rather than letting Town Councils use the surpluses for short-term benefits to win political favour, the surpluses are safeguarded for use on major but necessary cyclical works for the long-term benefit of the residents. The Government would like to make clear its stand that it will not bail out any Town Council, regardless of the political party which the MP belongs to, if it should run into financial deficit. Amendments to existing sections Sir, I shall go through the other amendments in the Bill. Clause 2 seeks to redefine "commercial property" and "residential property" so that Town Councils can perform specific functions with regard to each type of property. Clause 3 amends section 3 to deal with post-election arrangements. First, Members of Parliament will have eight days after a general election to agree to have their constituencies declared as a Town, failing which each constituency will itself form a Town. Second, a Town Council, part of whose Town area now forms another Town, will have to manage and maintain the common property in that area without drawing on the surpluses until the new Town Council is formed for that area.”
“However, we know that this measure would compound the problem because the residents' contributions are already lagging behind the increase in maintenance costs. The Government will not bail out any Town Council that runs into deficit. Ultimately, the residents are the ones who will suffer because they have to face the consequences of inadequate sinking funds. The Government wants to help the Town Councils to build up their sinking fund as well as to avoid the need for residents to pay a lump sum contribution for the cyclical maintenance works. Therefore, my Ministry proposes to transfer Town Councils' surpluses to the sinking fund to safeguard them for approved uses. This is similar to locking up past budget surpluses at every change of Government so that our future will be more secure. Clause 9 of the Bill proposes that a Town Council transfer to its sinking fund, all or part of its surpluses as shown in its audited balance sheet for the last completed financial year before the issue of a Writ of Election. It ensures that Town Councils' surpluses are safeguarded whether the Member of Parliament running the Town Council is or is not re-elected at a general election or by-election. The full amount of the surpluses is transferred to the Town Council's sinking fund if the MP is elected from another political party. If the MP is re-elected from the same political party, only 80% of the Town Council's surpluses will be transferred to its sinking fund. The successor Town Council can retain 20% of the surpluses for running its operations or carrying out town improvements.”
“To boost the balance in their sinking funds, Town Councils should set aside a higher proportion of monthly Service and Conservancy charges over and above the minimum requirement. However, many Town Councils are currently running at a deficit as their Service and Conservancy income could barely match their operating expenditures. Town Council operations are also financed by annual grants-in-aid given by the Government. It is only with such operating grants that Town Councils achieve budget surpluses. So it is unlikely that Town Councils would voluntarily increase the proportion of their Service and Conservancy charges to be set aside in their sinking fund. The surpluses accumulated by the Town Councils so far are primarily attributed to the Government's substantial annual grants-in-aid. In the Financial Year 1995/1996 alone, the grants given to all Town Councils amounted to $92 million. Government takes a keen interest in ensuring that the Town Councils' surpluses are put to worthy uses to maintain or enhance the value of the properties under their management. This is also in the long-term interests of the residents in the Town. Presently, Town Councils are at liberty to deploy the surpluses that they have accumulated over the years. They can safeguard their surpluses by transferring them to the sinking fund for approved uses. They could also use the surpluses to carry out improvement works in the Town. The surpluses may also be used by Town Councils to subsidise the Service and Conservancy charges. Of the three measures, the first is the most prudent way of managing Town Councils' surpluses. The last measure would certainly appeal to the residents and some Town Councils may be tempted to adopt it.”
“When Town Councils were established progressively since 1989, the Government gave Town Councils a one-time cyclical maintenance grant to build up their sinking funds. The total amount of cyclical maintenance grant given to all Town Councils was $264 million. This sum covered the cyclical maintenance works for the first seven years of the Town Councils' operation. After giving Town Councils this headstart, Town Councils are now on their own. My Ministry observed that the costs for cyclical works increased by an average of 5% per year from 1991 to 1994. However, Town Councils' Service and Conservancy charges increased by an average of only 3% per year between 1989 (when the Town Councils were first established) and 1995. The contribution rate therefore lags behind the increase in maintenance costs. My Ministry has conducted a study on the sufficiency of Town Councils' sinking funds to meet the cyclical maintenance works in the future. The study shows that many Town Councils, with their present sinking fund balances, would not have enough funds for the cyclical maintenance works. Without adequate sinking funds, the residents would have to fork out cash each time their Town Councils carry out major cyclical maintenance works. Therefore, Town Councils have to increase their sinking fund contributions now to increase their self-sufficiency. We have to find additional ways to build up their sinking funds. Town Councils are required by law to set aside a minimum proportion of the monthly Service and Conservancy charges to their sinking funds. The proportion ranges from 30% to 40%, depending on the type of property.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Objective This Bill seeks to amend the Town Councils' Act in several aspects. Apart from clarifying and expanding on some existing sections, the Bill also introduces a new section relating to the transfer of Town Councils' accumulated surpluses to their sinking funds at every General Election or By-election. I shall explain the rationale for the proposed transfer of surpluses before proceeding to explain the other amendments proposed in the Bill. Rationale for Transfer of Surpluses Mr Speaker, Sir, Town Councils (TCs) have to carry out both routine and cyclical maintenance works so that the properties within the Towns are always in good condition. An example of routine maintenance works is the daily cleaning and upkeep of the Town. Examples of cyclical maintenance works are the repainting of buildings, the renewal and replacement of roofs, water tanks, pumps and electrical supply system and lifts, and major repairs and maintenance of common property in the Town. My Ministry has stipulated the appropriate intervals for various cyclical maintenance works. For example, booster pumps and hoisting ropes or sheaves of lifts should be replaced at 7-year intervals. Water pumps should be replaced once in every 12 years, re-roofing every 14 years and re-wiring every 20 years. The lifts should be totally overhauled or replaced every 28 years. Based on these guidelines, many Town Councils will need to carry out major cyclical maintenance works which require large expenditure in the next few years. Town Councils use their sinking funds to finance the cyclical maintenance works.”
“(a) To date, 75 CCCs have used CIPC funds to build covered walkways. The names of the CCCs are at Annex A (Cols. 609 - 610). (b) Since the CIPC scheme first started in November 89, CIPC has approved a total number of 719 covered walkways. These have either been constructed or are under construction. (c) The total CIPC funding for the 719 covered walkways amount to $59.2m. (d) The number of CIPC-funded covered walkways in the Sembawang GRC and Nee Soon South Constituency, to date, are 35 and 15 respectively Annex A - CCCs which have used CIPC funds to build covered walkways (Cols. 609 - 610)”
“The problem arose because GIC had, on behalf of BCCS, purchased certain securities which were not explicitly guaranteed by a government, although they were issued by Government or State authorities. These securities were regarded in the market as implicitly guaranteed by Government. However, GIC has since been advised by the Attorney-General's Chambers that to comply with the Currency Act, the security must be explicitly guaranteed by Government. GIC now follows strictly the interpretation of the Currency Act to invest only in securities with explicit government guarantees.”
“The Deputy Prime Minister and Acting Minister for Finance (BG Lee Hsien Loong): Mr Speaker, Sir, I would like to assure the Member that GIC takes the findings of the Auditor-General seriously and has taken steps to address all of them. On the nine breaches of credit limit, the main concern was that the breaches had not been brought to the attention of the head of department. These breaches were actually technical in nature, arising from the basis of calculation. Essentially, the GIC officer concerned had used the "nominal value" of the bonds, instead of the "market value", to calculate the exposure. The "nominal value" calculations were well within the limits, but based on the "market value", the credit limits would have been exceeded. The breaches were all very small in magnitude, ranging from only 0.028% to 0.14% of the value for each of the transactions. Besides, the parties involved in those breaches of credit limits were reputable financial institutions. The risks of default from these breaches were insignificant. As pointed out by the Auditor-General, each department in GIC already has its own system to monitor adherence to credit limits. In addition, GIC has set up an independent Risk Control Unit to monitor compliance with these limits and to report on any breach of the limits, technical or otherwise, to the appropriate management level. This Unit also monitors the trading limits of foreign exchange dealers. The Member also asked about the purchase of unauthorised securities by GIC on behalf of the Board of Commissioners of Currency (BCCS). Under the Currency Act, the Board's funds have to be invested in securities which are guaranteed by foreign governments or international financial institutions.”
“Sir, NETS is a convenient cashless mode of payment. HDB installed a NETS terminal at the Ang Mo Kio Branch Office in May 1988. The average monthly NETS collection is about $157,000 comprising 1,000 transactions. This is only about 5% of the total number of counter transactions at the Branch Office. As the volume of NETS transactions is low, the NETS facility has not been extended to other Branch Offices. HDB encourages cashless transactions, primarily by making it unnecessary to make the trip to the Branch Office itself. The main scheme is the GIRO through which residents can make their regular monthly payments without the need to go to the Branch Offices. HDB residents can also pay their regular charges at any convenient OUB and OCBC ATM at any time of the day. They can also make use of the phone banking services provided by OUB, UOB, OCBC and DBS Bank in the convenience of their homes. In addition, residents with current accounts can pay their miscellaneous transactions by cheque, which can be sent either by post or deposited at the cheque deposit boxes located outside most Branch Offices. GOVERNMENT OF SINGAPORE INVESTMENT CORPORATION PRIVATE LIMITED (Measures taken in response to Auditor-General's findings) 9. Mr Low Thia Khiang asked the Minister for Finance what measures have been taken by the Government of Singapore Investment Corporation Private Limited in response to the following findings by the Auditor-General: (i) nine breaches of credit limits not being reported to the head of department; (ii) inadequate monitoring of credit limits of individual departments and trading limits of foreign exchange dealers; and (iii) purchases of securities from unauthorised issuers.”
“The Government will look at several mechanisms to make sure that the 3-room flats will continue to be affordable to at least 90% of Singaporean households. One solution will be to increase the subsidy. Other solutions may well include extending the mortgage loans and having other financial schemes to make sure that 3-room flats remain affordable. HALFWAY HOUSES FOR PROBLEM FAMILIES 4. Mr Low Thia Khiang asked the Minister for Community Development whether the Government will build and operate halfway houses to help problem families who need temporary shelter.”
“Sir, HDB continues to monitor the resale prices of 3-room flats. Right now, it is still more cost effective for the HDB to buy the units from the resale market and sell them to applicants at a hefty discount, rather than to build new flats, because it costs more to build new flats. HDB will continue to monitor the situation. If it costs us more to buy than to build, then, obviously, we will build. But the objective of making the 3-room flats affordable to Singaporean households will be maintained. The Government is committed to make sure that 90% of Singaporean households will be in a position to afford 3-room flats. I want to assure this House that however high the resale prices of 3-room flats may go, the Government will make sure that 3-room flats will remain affordable to at least 90% of Singaporean households.”
“Mr Speaker, Sir, there are about 242,000 units of 3-room flats, making up 35% of the stock of HDB flats. HDB stopped building 3-room flats since 1985 because of the poor demand. Applicants have continued to show a preference for the bigger flats. With an average of 12,000 to 13,000 units of 3-room flats transacted in the resale market each year and HDB's programme to progressively sell suitable 3-room rental flats to sitting tenants, there is sufficient supply to meet the demand for 3-room flats. HDB has to be cautious not to create a situation of over-supply of 3-room flats. To build new 3-room flats will increase the already large pool of such flats. This may cause resale prices of 3-room flats to fall.”
“During the Parliamentary Sitting held in January 1996, the MP for Hougang had asked the Minister for National Development whether the old Punggol estate at Hougang Avenues 3 and 7 will be redeveloped, including Blocks 3 and 4 at Hougang Avenue 3. Following the MP's query, HDB has initiated a study to evaluate the need for redevelopment of the estate. Pending results of the study, all term tenancies in the estate therefore have been granted on an annual basis. This is to facilitate redevelopment of the estate if the study finds it worthwhile to do so. Also, pending the outcome of the study, there are currently no plans to upgrade Blocks 3 and 4 at Hougang Avenue 3.”
“The Prime Minister said in his National Day Rally speech on 18th August 1996 that the Government will continue to spend more time, energy and resources on public housing. He also stressed that public housing will continue to remain affordable and revealed that the Government will do more to help the lower income households to own their flats. Following this, the Minister for National Development has, on 22nd August 1996, explained the four-pronged approach that the Government has put in place to help the lower income households own their flats. The approach comprises: (a) sale at discounted prices of 3-room flats, purchased by HDB from the open market; (b) sale of 4-room budget flats; (c) sale of rental flats to sitting tenants at discounted prices; and (d) priority allocation of 3 and 4-room flats to HDB rental flat tenants. These measures have so far benefited about 9,700 low income families. The Minister has also announced additional measures to encourage greater home-ownership among the low-income families: (a) The discount on the sale prices for 3-room buy-back flats will be increased. At present, these flats are sold at a discount of $40,000. The discount will be raised to $50,000 to enable more low-income families to buy these flats from the HDB; and (b) The household income ceiling for applicants buying 3-room buy-back flats will be raised from $1,200 to $1,500 per month. This will enable more families to apply for the 3-room buy-back flats. UNIVERSITY ADMISSION 23. Mr Low Thia Khiang asked the Minister for Education whether those who donate generously to the University Endowment Fund should be given some form of priority in university admission.”
“Detailed data on foreign ownership of private residential properties are not available as they were not fully captured in the past. URA is now working with IRAS to track and update the data on foreign ownership of private residential property stock. These will be released in URA's quarterly Stock & Occupancy Data starting in the second quarter of 1996. Annex - Table 1: Rebates Granted in FY96 Budget ($), Table 2: Rebates Granted After Revision ($), Table 3: Schedule of Utilities Rebates (Cols. 471 - 472) Annex A - ANG MO KIO/AVE 1/ST 32 REDEVELOPMENT (Cols. 473 - 474)”
“(b) waiver of registration fees for tenants purchasing flats under the Registration for Flat System; (c) waiver of booking fees for tenants purchasing 4-room (90 m²) or smaller flats; (d) higher quantum of mortgage loan for tenants if they purchase an HDB flat as follows: (i) for 4-room (90 m²) or smaller flats, up to 100% of the selling price or the market valuation, whichever is lower; (ii) for other flats, 90% of the selling price or 90% of the market valuation, whichever is lower. (e) for those whose new sold flats allocated are under construction, allocation of rental flats as temporary accommodation; (f) for tenants wishing to continue to rent a flat, priority allocation for rental flats in the same or nearby estates; and (g) a removal allowance of $1,000. Annex A - ANG MO KIO/AVE 1/ST 32 REDEVELOPMENT (Cols. 473 - 474) In all the seven SERS sites announced to-date, the response from the lessees and tenants has been very good. Most residents opt for bigger flat-types as their replacement flats. This is so even for those living in smaller flats. For example, from a survey done amongst 1-room lessees in the Redhill SERS site, 68% indicated that they would opt for a 4- or 5-room flat. Only 32% of the lessees indicated that they would opt for a 2-room upgraded or 3-room buy-back flat. FOREIGN-OWNED RESIDENTIAL PROPERTIES 6. Mr Low Thia Khiang asked the Minister for National Development, for each of the years from 1990 to 1995 and the first two quarters of 1996, how many foreigners bought residential properties in districts 9, 10 and 11 and what was the percentage of foreign ownership in these districts.”
“For some of the affected 1-room flat owners who are unable to afford the new 4-room replacement flats, the following options are available: (a) they can include their parents/children as co-lessees of the new replacement flats to assist in the payment of the new replacement flats; (b) they can purchase directly from HDB 3-room buy-back flats or 2-room upgraded flat (subject to availability); (c) they can sell their existing flats with their rehousing benefits to eligible buyers (who must be eligible to buy flats directly from HDB). The sale will fetch a premium for the rehousing benefits. Combining the sale proceeds with their CPF savings, they should be able to buy a 2-room or 3-room resale flat from the open market. (B) Relocation Benefits to Tenants of Rental Flats In tandem with the redevelopment of Blocks 307,308, 309, 315 and 316 at Ang Mo Kio Avenue 1 under SERS, 6 units of 1-room rental flats at Block 309 and 154 units of 2-room rental flats at Block 310 Ang Mo Kio Avenue 1 will be relocated. The relocation benefits for the affected eligible flat tenants are as follows: (a) Priority allocation of: (i) surplus new flats to be built at the vacant site south of Townsville Primary School for tenants of Block 309 and at the present site of Blocks 309, 315 and 316 for tenants of Block 310 (see site plan at Annex A (Cols. 473 - 474)); or (ii) new flats in non-mature estates under the Registration for Flat System; or (iii) 2-room upgraded flats or 3-room buy-back flats (subject to availability).”
“The Government has put together a very attractive compensation package for lessees affected by the Selective En-bloc Redevelopment Scheme (SERS) so that no one would be deprived of a home. The compensation package for lessees in the Ang Mo Kio site is the same as that announced for the other sites. This is as follows: (A) Compensation Package for Flat-Owners (including 1-room flats) Under SERS, owners of flats, including the 1-room flats at Block 309 Ang Mo Kio Avenue 1, are compensated at the prevailing market values of their existing flats as at 30th June 1996 when SERS was announced. For the 1-room flats, this is estimated to be about $50,000 to $70,000. In addition, the flat owners are given a package of rehousing benefits as follows: (a) assured allocation of a new replacement flat (4- or 5-room) at the vacant site south of Townsville Primary School; (b) discount equivalent to 20% of the selling prices of the replacement flats, subject to a maximum of $30,000 for eligible owners. If they sell their flats to eligible buyers, their flats command a significant premium because of the SERS benefits. The selling prices of the new replacement flats are frozen as at the date of the SERS announcement ranging from $182,000 to $232,000 for a 4-room flat (90/95 m²) and $303,000 to $369,000 for a 5-room flat (110 m²).”
“Supermarkets in HDB estates are of varying sizes, ranging from about 300 sq m to 5,000 sq m. For the larger supermarkets, HDB allows tenants to sublet a small portion of the supermarket space for the sale of pre-cooked food/snacks for off-premises consumption. This is provided the tenant fulfills HDB's criteria for subletting. SELECTIVE EN-BLOC REDEVELOPMENT SCHEME 5. Dr Kanwaljit Soin asked the Minister for National Development if he will give (i) more details on the compensation package for the affected tenants of rental flats and the affected owners of 1-room flats in the Ang Mo Kio Selective En-bloc Redevelopment Scheme; and (ii) an assurance that these people will not be affected adversely.”
“We are monitoring the waiting time for all categories, whether they are first-timers or upgraders, and we will have to adjust if the situation calls for it. As regards the need for cash upfront, since 1995 my Ministry has made many modifications to the procedures so as to minimise the need for cash upfront, particularly for first-timers who are buying resale flats. For example, we have brought our valuation closer to market. We have allowed back-to-back transactions for upgraders. We have allowed 10% downpayment for certain categories. We have allowed 5% downpayment for those with very low income. So there are many measures to help first-timers, particularly the low-income families, to buy their flats. But I must stress that buying a property is a major investment decision of any family and therefore they should build up their savings resources for this very big investment decision. Young couples should not expect to be able to buy a property without setting aside cash savings for this very major investment decision. GOVERNMENT RESTRUCTURED HOSPITALS (Admission of patients to B2 or higher class wards) 11. Mr Low Thia Khiang asked the Minister for Health, in 1994 and 1995, how many patients were admitted to B2 or higher class wards in Government restructured hospitals such as Singapore General Hospital, Toa Payoh Hospital, Tan Tock Seng Hospital and Kandang Kerbau Hospital due to C class beds being not available at the time of admission.”
“Mr Speaker, Sir, the Registration for Flat System introduced in October 1994 recognises that first-timer applicants have more urgent need over upgrader applicants in getting a flat. Hence, 60% of the flat supply in non-mature estates are apportioned to first-timers and 40% to upgraders. With about equal numbers of first-timers and upgraders currently in the queue, the allocation of HDB flats already favours the first-timers as they will get their flats earlier than the upgraders. HDB is monitoring the situation and will adjust the allocation proportions, if necessary, in future. In addition, rather than queue for new flats, first-timers can also choose to buy resale flats, with the help of the CPF Housing Grant. The grant quantum is $40,000. It is $50,000 for those who purchase a resale flat near their parents' home. This scheme is very much more attractive than before. HDB will also continue to monitor the scheme and will refine it, if required.”
“The Executive Condominium Scheme was conceived as a way to help Singaporeans to own properties, particularly that group who now find private properties beyond their reach. So it is to help the so-called "sandwich" group. As a result of the restrictions on the Executive Condominium, the land prices and therefore the selling prices of the Executive Condominium can be priced more competitively. In a sense, this is a separate segment of the market compared to those who are buying private property, particularly those aiming for freehold private property in choice areas. We are still studying the income profiles of the applicants for the first two projects and analyse which segment of the income they come from. Then we will have a better feel whether the Executive Condominium is drawing demand from the segment that we are aiming to help or is drawing demand from that segment which could have afforded private condominiums with their own resources. HDB FLAT ALLOCATIONS (Policy to assist young couples) 10. Dr S. Vasoo asked the Minister for National Development whether there will be further policy changes to assist young couples to be allocated new flats earlier and to reduce financial outlay of those buying resale flats.”
“The price for each project will have to depend on the market conditions prevailing at the time of the launch. The first two projects showed that the price set at $400 per sq ft was fair and reasonable, and Singaporeans have responded positively.”
“Mr Speaker, Sir, for a start, my Ministry has identified six sites for the development of about 2,100 units of Executive Condominiums in the first year. These sites are at Pasir Ris, Jurong East, Simei, Tampines, Bukit Panjang and Choa Chu Kang. Pidemco, the first developer appointed under the scheme, has opened Eastvale at Pasir Ris and Westmere at Jurong East for booking. The expected date of Temporary Occupation Permit is 25th June 2000. A site for 602 units of Executive Condominiums at Simei has been allocated to NTUC. Singapore Technologies plan to build about 700 units of Executive Condominiums at Bukit Panjang and Choa Chu Kang. Pidemco will develop about 300 units in Tampines. All these projects are still in the design stage and the completion dates have not been finalised.”
“The HDB flat-types transacted in the open market are shown below. Of the total resale transactions, an average of 47% were for 3-room flats, followed by an average of 29% for 4-room flats. Flat Type 1-R 2-R 3-R 4-R 5-R Exec MG HUDC Total Year 1990 82 363 7,906 3,555 1,790 457 0 231 14,384 1991 64 252 7,766 3,861 1,864 687 2 357 14,853 1992 68 317 8,070 4,617 2,210 862 22 426 16,592 1993 68 388 8,804 6,025 3,188 1,429 50 515 20,467 1994 99 452 13,098 9,238 4,902 2,040 37 536 30,402 1995 110 503 12,541 10,520 4,855 1,845 29 411 30,814 Note: The above figures are based on the date of approval of resale transactions. Annex - SALARIES FOR POLITICAL APPOINTMENT HOLDERS (Cols. 249 - 252)”
“Year (a) (b) (c) (d) (e) Others Total 1990 869 472 1,308 5,523 1,986 4,226 14,384 (6%) (3%) (9%) (38%) (14%) (30%) (100%) 1991 678 479 1,369 5,574 2,236 4,517 14,853 (5%) (3%) (9%) (38%) (15%) (30%) (100%) 1992 599 597 1,653 6,226 2,173 5,344 16,592 (4%) (4%) (10%) (38%) (13%) (31%) (100%) 1993 1,189 1,478 3,030 5,705 2,705 6,360 20,467 (6%) (7%) (15%) (28%) (13%) (31%) (100%) 1994 2,826 2,891 5,381 7,903 2,968 8,433 30,402 (9%) (10%) (18%) (26%) (10%) (27%) (100%) 1995 3,443 3,288 6,032 9,202 2,487 6,362 30,814 (11%) (11%) (20%) (30%) (8%) (20%) (100%) Average 7% 6% 14% 33% 12% 28% 100% Notes: Figures in brackets are the percentages of the total for that year. The figures in the "Others" column include staying with relatives, renting a flat, subletting room(s) from HDB lessess, etc. (a) bought similar size HDB flat from open market (b) bought smaller size HDB flat from open market (c) bought bigger size HDB flat from open market (d) bought a new unit directly from HDB (e) upgraded to private properties. HDB FLATS TRANSACTED IN OPEN MARKET 5. Mr Low Thia Khiang asked the Minister for National Development how many Housing and Development Board flats were transacted in the open market for each of the years from 1990 to 1995 as categorised by the size of the units.”
“The plot of vacant land along Yishun Central 1, between Golden Village Yishun 10 and Block 921, has not been sold. The plot across Yishun Central 1 opposite Block 921 has also not been sold. HOUSING OPTIONS OF SELLERS OF HDB FLATS 4. Mr Low Thia Khiang asked the Minister for National Development for each of the years from 1990 to 1995, how many Housing and Development Board flat owners sold their flats and (i) bought another similar size HDB flat from the open market; (ii) bought a smaller size HDB unit from the open market; (iii) bought a bigger size HDB unit from the open market; (iv) moved into a new unit allocated by the HDB through direct application; (v) upgraded to private property. Mr Lim Hng Kiang: The information on the housing options taken by sellers of HDB flats in the resale market are based on results compiled through a survey questionnaire given to sellers at the time of processing the resale transactions. On average, about 13% of HDB flat sellers bought flats of similar or smaller flat-types from the resale market. 14% upgraded to bigger HDB flats and 33% moved to new units bought directly from HDB. Another 12% upgraded to private properties.”
“HDB will build a multi-storey carpark-cum-wet market at Neighbourhood 7, Bedok Reservoir Road. HDB has started on the design of the facility and will call tender soon. The wet market is estimated to be completed in December 1998. When completed, the wet market will be able to meet the marketing needs of the residents. PLOT OF LAND ALONG YISHUN CENTRAL 1 3. Mr Cheo Chai Chen asked the Minister for National Development whether the plot of land along Yishun Central 1 (opposite Block 921) has been sold to a private developer and, if so, (a) when was it sold; (b) who is the developer; (c) what will the land be used for; and (d) when will the project begin.”
“Mr Speaker, Sir, I think the Ministry in part shares his concern and that is why we are doing this merger in two steps. As Members will remember, we merged the Nature Reserves Board with the Singapore Botanic Gardens in 1990. At that time, if we were to merge the Nature Reserves Board with the Parks and Recreation Department, I think it would have been a very major step and the Nature Reserves Board, being such a small board, would be overwhelmed by the Parks and Recreation Department, and its expertise and direction could well be overwhelmed by the day-to-day maintenance function of the Parks and Recreation Department. That is why we did it in two steps. We combined the Nature Reserves Board with Singapore Botanic Gardens which has the same focus as the Nature Reserves Board -- conservation of our green heritage. That has been successfully done and we are now confident that the organisational culture of the two organisations is now closer together and we are confident that with this merger, the focus of the National Parks Board will not be overwhelmed by the Parks and Recreation Department. 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. SUSPENSION OF SITTING”