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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“These define the powers of the Board to carry out its duties as well as provide for consequential amendments to the Parks and Trees Act. Conclusion Sir, the parks, gardens and greenery of Singapore are a source of pride for Singaporeans. They enhance Singapore's reputation as a tropical city of excellence and as one that takes the management of its natural environment seriously. By bringing together the wealth of experience of the Parks and Recreation Department and the technical and managerial expertise of the National Parks Board, we will be able to build upon the achievements of the past 30 years and continue to develop Singapore as a Garden City. Sir, I beg to move. Question proposed.”
“The new Board will continue to carry out the functions presently undertaken by both the Parks and Recreation Department and the present National Parks Board. However, the new Board will now place greater efforts in improving its park management systems. It will also seek to be more creative and enterprising. It will explore new ways to improve park features and amenities. Legislation Sir, I will now elaborate on the Bill. The Bills seeks to reconstitute the National Parks Board. Although it is based on the existing National Parks Act, it repeals the present Act and replaces it as there is extensive rearrangement of the individual clauses. Part II of the Bill provides for the reconstitution of the National Parks Board. Specifically, clause 3 provides for the continued existence of the present Board. Present assets and liabilities of the Board therefore remain with it. This will also allow the present Board to continue when the Bill comes into force. The functions and powers of the Board are contained in Part III and are drawn from the functions of the current National Parks Board and the Parks and Recreation Department. Part IV and Part V of the Bill relate to staff and financial matters. They are based on existing provisions that the current Board has to comply with. Part VI of the Bill provides for the transfer of movable property, assets, liabilities, and employees from the Parks and Recreation Department to the Board. Part VII provides for the establishment of national parks and nature reserves. It also defines the activities that are prohibited in national parks, nature reserves or green areas. Part VIII contains miscellaneous provisions.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Objective The proposed National Parks Bill 1996 seeks to merge the National Parks Board and the Parks and Recreation Department into a single statutory board. Background In 1990, the National Parks Board was formed through the merger of the Nature Reserves Board and the Botanic Gardens Division of the Parks and Recreation Department . The rationale then was to give management focus to our heritage parks, namely, the Singapore Botanic Gardens, the Fort Canning Park and the Nature Reserves. Their potential for recreation, conservation, research and education would therefore be better realised. Rationale Sir, this goal has been achieved. The National Parks Board has successfully integrated the heritage parks and nature reserves to complement one another as conservation and recreation resources for Singaporeans and tourists. In the process, it has also developed specialist expertise in park management and has established active education and public outreach programmes. It is therefore now opportune to integrate the work of the National Parks Board with that of the Parks and Recreation Department to capitalise on their accumulated expertise. As a single statutory board, their combined expertise in park development, horticulture and amenity management, will allow the new Board to serve the public better. There will be synergy and greater cost effectiveness in the use of resources as the core businesses of the Parks and Recreation Department and the National Parks Board are complementary. Mission and roles of the New National Parks Board The mission of the new Board will be to improve the quality of life for Singaporeans by enhancing and managing the parks and greenery of our Garden City.”
“Sir, the site for the new community library in Yishun has not been identified yet. The National Library Board will work with the URA to select a suitable site. Under the National Library Board's development plan, the Yishun Community Library will be ready in about five years' time. COVERED LINKWAYS ALONG HOUGANG AVENUES AND UPPER SERANGOON ROAD 12. Mr Low Thia Khiang asked the Minister for Communications whether the Land Transport Authority has plans to build covered linkways along Hougang Avenues 2, 3, 5, 7, 10 and Upper Serangoon Road to link the bus stops to the nearest building. RAdm Teo Chee Hean: Mr Speaker, Sir, the Land Transport Authority (LTA) has no immediate plans to build covered linkways at the locations mentioned. LTA is concentrating its efforts and resources to build linkways around MRT stations, like Bishan, Outram and Aljunied, as this will benefit the most number of commuters. As for the Upper Serangoon area, many of the bus shelters will be reconstructed and linked to the nearest building in tandem with the construction of the North-East MRT line.”
“Mr Speaker, Sir, besides the Outward Bound School (OBS) and the National Police Cadet Corps (NPCC) campsites on the western and northern part of Pulau Ubin, some 500 hectares of land (or about half of Pulau Ubin) have been earmarked for the development of Pulau Ubin for the recreation of Singaporeans in a rural and natural setting. A development concept plan has been drawn up and recreational facilities will be provided. The Parks and Recreation Department is improving the basic infrastructure at Pulau Ubin and the private sector will be invited to manage some of these recreational facilities. The basic infrastructure improvements are targeted to be completed by early 1997. They include a better trail system for hiking and biking, a new public campsite with toilet facilities at the north-east coast of Pulau Ubin, and an information kiosk next to the public jetty. Concurrently, the Parks and Recreation Department is also working with the URA to lease out two sites along the southern coast of Pulau Ubin for development. At one site, simple and basic accommodation will be provided, and at the other, an outdoor recreation centre with accommodation and water-based and land-based facilities such as canoeing, sailing and rock-climbing. Tenders for the two sites are scheduled to be called later this year. YISHUN COMMUNITY LIBRARY 11. Mr Cheo Chai Chen asked the Minister for Information and the Arts where will the new community library in Yishun be sited and when will it be operational. The Parliamentary Secretary to the Minister for Information and the Arts (Encik Mohamad Maidin B P M) (for the Minister for Information and the Arts): Mr Speaker, Sir, Mr Cheo has asked where will the new community library in Yishun be sited and when will it be operational.”
“Mr Speaker, Sir, the open field between Blocks 404 and 413 at Jurong West Street 42 is designated as a reserve site for future development. At present, there are no fixed plans for this site. BUS SHELTERS IN HONG KAH GRC (Upgrading) 9. Encik Harun bin A. Ghani asked the Minister for Communications whether there is a plan to upgrade the bus shelters in Hong Kah Group Representation Constituency and, if so, when will the work start. The Acting Minister for Communications (RAdm Teo Chee Hean): Mr Speaker, Sir, there are over 3,000 bus shelters in Singapore. Generally, a bus shelter is replaced if it is more than 15 years old and is beyond economic repair. However, as part of its efforts to improve the quality of our public transport system, the Land Transport Authority (LTA) has embarked on a pilot project to upgrade 100 bus shelters in the city area and along main roads in Ang Mo Kio New Town. The new generation bus stops have been designed taking into account feedback from bus commuters. Apart from the basic function of protecting commuters from inclement weather, these bus stops are also equipped with amenities like fans, water coolers and telephones. The LTA will monitor bus commuters' response to the new amenities. If the pilot project proves to be a success, it will extend the bus shelter upgrading programme to other areas. PULAU UBIN (Recreational facilities) 10. Mr Cheo Chai Chen asked the Minister for National Development if there are any plans to develop recreational facilities in Pulau Ubin and, if so, whether he will provide details of these facilities.”
“The trade-off between privacy, security and free access for social interaction is best left to the residents to decide for themselves whether in their particular circumstances they want to install such a system. If they find that there are too many accesses by strangers, and it does not necessarily cut off social interaction, they can still freely come and go and visit whoever they want in the block. There is still good access through the intercom. INCOME DERIVED FROM PROPERTY TRADING (Definition) 5. Dr Kanwaljit Soin asked the Minister for Finance what is the definition of income derived from property trading and how many people paid tax on this source of income from 1993 to 1995.”
“If it is an item installed under the Interim Upgrading Programme, as is done by the Bedok Town Council, then the costs will have to be met within the $6,000 budget allocated per flat and the residents do not have to pay for it.”
“Mr Speaker, Sir, the installation of security gates is part of an Integrated Security System which was first incorporated in the pilot project at Woodlands Blocks 318 and 321. Under this system, the access points to the blocks are enclosed with grilles and metal gates. To go in and out of the block, the residents have to make use of access cards or the exit push button respectively. For the visitor, a call panel is installed at the main gate for him to call up the unit that he wants to visit. The resident, upon identifying the visitor through his audio intercom handset, can unlock the main gate at the lift lobby by depressing a button on the handset. The residents can also identify visitors or watch what is happening at the main gate through their television sets. The Integrated Security System is a complete security system for the entire block. Besides lift crime, the system also deters crimes such as robbery and housebreaking within the block. The system therefore achieves an all-round improvement in crime prevention and enhances the sense of security of the residents. HDB continues to monitor the pilot project at Woodlands. Most of the residents feel that this system has enhanced their security and gives them more privacy. However, it is still possible for strangers to slip into the block by following a resident or a visitor. This is where the residents must cooperate with one another. At the same time, they should not be complacent and be lulled into a false sense of security. HDB leaves it to the Town Councils to decide whether to install the Integrated Security System in their estates.”
“Sir, the HDB officers dealing with this scheme have a fairly good idea of where the demand lies and they would direct the housing agents to source for those flats where there is a demand. Most of the flats would be in the central area, like Queenstown, Bukit Merah, Toa Payoh, Bedok and Geylang. Not many flats can be sourced from the Woodlands area. The sourcing of such flats is quite responsive to the demand.”
“Mr Speaker, Sir, the 3-room buy-back scheme from the open market for sale to low-income families is part of Government's efforts to help the low-income families own their flats. HDB buys back from the open market a wide range of 3-room flats at varying prices and at varying locations. These flats are then offered for sale to the 3-room flat applicants on the waiting list. The take-up rate is about 58%. Applicants are given a second opportunity to choose the flat of their choice. Those who are very particular about location can buy a resale flat directly, with the help of the $40,000 CPF grant given to first-time purchasers.”
“Mr Speaker, Sir, with the introduction of the Executive Condominium Housing Scheme in August 1995, HDB has stopped accepting applications for its Executive flats. As at 31st March 1996, there were about 29,000 applications in the Executive flat register under HDB's Registration for Flat System. HDB will continue to build about 4,000 units of Executive flats each year for the existing Executive flat applicants. Under the Executive Condominium Housing Scheme, the developer appointed by my Ministry will set aside 80% of the supply of Executive Condominiums for allocation to registered Executive flat applicants. To encourage the purchase of Executive Condominiums, eligible first-timers will be given a $40,000 CPF housing grant. The Executive flat applicants will have to decide between Executive Condominiums or Executive flats at the point when their registration numbers are due for either type of housing. Applicants from the Executive flat queue who decide not to buy an Executive Condominium will be allowed to retain their queue positions until they are due for selection of an Executive flat. If all or most of the 80% of the supply of Executive Condominiums set aside for allocation to registered Executive flat applicants are taken up, then it will take about five years to clear the 29,000 applications. HDB will be in a better position to review the building programme for Executive flats once the take-up rate for Executive Condominiums becomes clear. HDB'S PURCHASE OF 3-ROOM FLATS FROM OPEN MARKET 2. Mr Low Thia Khiang asked the Minister for National Development whether the Housing and Development Board's purchases of 3-room flats from the open market are based on the demand for units in preferred estates by lower-income applicants.”
“To protect the flora and fauna of our nature reserve, a 50-m buffer zone is observed along the boundary of the reserve. No developments are allowed within this buffer zone. Just outside this zone, only low-rise and landed residential developments are allowed. The Springdale and Southhaven condominiums, which are medium-rise developments, are allowed as they are well separated from the nature reserve at about 100m away. The two condominium sites were, in fact, formerly factories. They are redeveloped into housing as part of the Phasing out of Pollutive Industries programme in the Bukit Timah area which was launched in February 1993. As the redevelopment would improve the physical environment in the locality, a separate study is unnecessary. Table 1 - MAJOR LAND PARCELS (Cols. 127 - 128)”
“If aged parents living with the children have no use of the flat, then they could easily sell the flat in the resale market. This would keep the family intact and also make sure that the primary objective of HDB flats being owner-occupied is kept. Dr Tan Cheng Bock asked whether we will keep him informed. I will let JTC know that they should try and buy units which are evenly distributed in Singapore. I will assure Dr Tan that JTC is not just targeting the Jurong area, because many of these foreign professionals, are meant for expansion of the electronic industry, eg, the wafer fabrication plants which are not primarily in the Jurong area. They will be in the Woodlands, Tampines and Paya Lebar areas. For a start, I do not think JTC will buy the majority of the 1,000 units in the Jurong area. 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. TRANSFER OF THE NANYANG UNIVERSITY ALUMNI REGISTER BILL Order for Second Reading read. 2.18 pm”
“I would say that, first, we are catering to the different needs separately so there will be less social problems. Second, the number is very small, less than 1%, and even with the 1% we are spreading it out evenly. Third, JTC will be given a limit of not more than 1,000 units for the immediate future. If you look at 1,000 units out of the HDB resale market of 30,000 units per year, I can assure Members that this will not cause undue impact on the HDB resale market. It is only 1,000 units out of 30,000 units. And JTC will not be involved in the business of buying and selling these units. Their purpose is to buy these units and rent out to their foreign professionals. Mr Low Thia Khiang asked whether we can allow individual lessees to rent out their flats entirely to foreign workers. We do so under fairly strict conditions, ie, if they are on medical grounds, they are working overseas, or if they are given quarters by their companies, and so on. If there are valid grounds for the lessees to rent out their flats entirely, they can apply to the HDB for permission to do so. Dr Tan Cheng Bock: Mr Speaker, Sir, I am wondering whether the Minister would be kind enough to keep Members of Parliament informed of the number of units that JTC has bought, say, in my constituency and also in Jurong and Boon Lay, and those close by to the Jurong Industrial Estate.”
“Mr Speaker, Sir, I thank Dr Tan Cheng Bock for his support of the amendments. I would like to explain the changes in the approach to housing foreign workers over the years. I agree with Dr Tan that, in the beginning, we have tended to concentrate the foreign workers within certain blocks. But if the Member will remember, we have undertaken some changes. For example, we have now let out land to some of the bigger companies to build dormitory housing for their own foreign workers so that this will be kept on the fringe of the housing estates and not in the middle of the housing estates. So companies, such as Keppel, Sembawang, and a few of these big companies, are now building purpose-built dormitory housing for their own foreign workers, particularly in the marine engineering, shipbuilding and construction industries. So I think that category of foreign workers would now be housed increasingly away from the HDB estates. Within the HDB estates, we have about 4,600 units for the dormitory housing. These are meant for foreign workers employed in the factories. We also have 1,000 units under the Integrated Non-Citizen Housing Scheme. This is meant for the professionals and the skilled workers. By and large, such workers do not create social problems within the estates. But we must again see it in perspective. This totals less than 6,000 units, which is less than 1% of our HDB flats. I cannot imagine how we could set a meaningful quota which is only 1%. So we are spreading it as evenly as we can, granted that the companies want to house their workers close to the industrial estates which are also spread out throughout Singapore, although they are concentrated in the Jurong area.”
“In any case, there is already a check in place to ensure that owners of HDB flats regulate the behaviour of their tenants. JTC will also come under such regulation. The Housing and Development Act allows HDB to compulsorily acquire the flats if there is abuse by the occupants of the flats or breach of the conditions stipulated in the lease. Sir, I beg to move. Question proposed.”
“It cannot cater to all the housing needs of the foreign workers. With so many Singaporeans on the HDB queue, it would not be justified to divert HDB's resources to build housing for skilled foreign workers and professionals. Therefore, one solution is for JTC to buy HDB flats from the resale market so as to rent out these flats to foreign professionals in the industry. However, the Housing and Development Act only provides for eligible individuals to purchase HDB flats. The Bill thus seeks to amend the Act to enable corporate bodies, such as JTC, to purchase flats in the resale market by order published in the Gazette. Controls Mr Speaker, Sir, I will now cover the controls which we will put in place to ensure that the Bill is not likely to cause a significant impact on HDB resale prices nor create a social impact in the HDB estates. First of all, JTC will be buying resale flats in the open market. It will not be competing with Singapore citizens for the subsidised direct-purchased new HDB flats. Those in the waiting list for new flats therefore need not worry about their waiting period being affected. Secondly, as JTC is only buying a limited number of 3- and 4-room resale flats, its purchase should not unduly drive up HDB resale flat prices. Third, the flats under this scheme will not be for foreign workers in the construction, ship-repair or similar industries. These workers will be housed in separate dormitory housing sites. This scheme is meant to cater to the housing needs of other foreign professionals in Singapore, ie, the employment-pass holders required by companies to support their major expansion projects and start-ups. Therefore, in terms of social behaviour, we do not expect any difficulties when these foreign professionals move into these flats.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Objective The objective of the Bill is to amend the Housing and Development Act to allow gazetted corporate bodies to buy HDB resale flats. For a start, only Jurong Town Corporation (JTC) will be gazetted. Rationale There is a pressing need for JTC to meet the increasing demand for affordable housing among foreign professionals working in Singapore. As our Singapore economy grows, we need more skilled workers and management staff. Our local workforce is insufficient. We need to supplement with skilled foreign workers and professionals. The majority are either staying in HDB flats or private properties on a rental basis or have their own private accommodation arrangements. Presently, HDB allows flat lessees who are unable to occupy their flats for valid reasons to sublet their whole flats. Currently, about 80% of the approved cases are rented to foreign workers. HDB also allows flat lessees to sublet their rooms provided they occupy at least one room in the flat for their own use. HDB also provides assistance for the housing of foreign workers under two different housing schemes. The first scheme is the Integrated Non-Citizen Housing Scheme where interim housing on a two-year term tenancy basis is provided to employment-pass holders and skilled work permit holders while they look for permanent housing. The second scheme is the Dormitory Housing Scheme where HDB lets out flats to companies in the manufacturing and engineering and construction industries to house their foreign unskilled and semi-skilled workers. The demand for housing skilled foreign workers and professionals is rising. HDB's primary mission is to provide housing for our citizen families.”
“Dr Ker Sin Tze asked the Minister for Law whether the Government intends to introduce legislation to amend the provisions on forfeiture of vehicles in the Customs Act in view of the views expressed by the Chief Justice in the case of Public Prosecutor v M/s Serve You Motor Service that the legislature should consider making the necessary amendments.”
“I would urge Members to look at this issue in its entire perspective. The very reason why the property markets have moved is because there is strong confidence in the Singapore economy, in the Singapore Government. If that confidence is not there, property prices will collapse. When we look at the new releases of land for private condominiums, we take all these into consideration. First, the changing aspirations of Singaporeans and, therefore, we have moved from releasing 2,000 units to 6,000 units a year. Do not forget that not very long ago, less than seven or eight years ago, in the private property market, we were only talking about 4,000 units every year. And out of the 4,000 units, nobody quarrelled or discussed about foreign ownership in the 4,000 units. We have put in more land sales to raise the availability of such units to more than 10,000 now -- 6,000 by the Government and 4,000 from the land banks of private developers. So we have made private condominiums and private property more readily available to Singaporeans and, in so doing, Singaporeans now have better access to private property. As we track the purchases of Singaporeans and foreigners in the private property market, and we detect a strong demand for private property, Members can be assured that we will continue to adjust the supply to meet this demand. So the answer is, yes, we are monitoring this very closely and if indeed there is a greater demand for private property, the Government will adjust its land sales accordingly. CUSTOMS ACT (Amendment of provisions on forfeiture of vehicles) 3.”
“If Members start comparing Singapore with other countries, they will draw the conclusion that Singapore's property market is, in fact, more highly protected than the Australian market, because 93% of our market are not open to foreigners. The HDB sector and the landed property sector are not open to foreigners. So, in fact, only 7% are open to foreigners. When other countries, for example, Malaysia, put a levy on property, they are protecting the lower-priced properties. But in Singapore we do not need to do that because the HDB segment is already protected. Foreigners cannot compete to buy HDB properties. So if you restrict the sector which is open to foreigners, you are in fact making the situation worse. You are in fact making the sector even smaller and with the high level of foreign confidence in our Government, in our economy, foreigners going for properties in a smaller market will then accentuate the prices. Today, with foreigners being allowed to buy only private condominiums, I think that is the right approach because the lower segments and the landed properties are protected, so that foreigners cannot own land in Singapore. That is a sound policy. It has served us well since 1976 and there is no need to make any drastic changes unless foreigners are buying in very large numbers, and they are not.”
“If we were to react unwisely now and close the market, this sends a wrong signal about the openness of our markets. So I would hasten to make any drastic changes to the Residential Properties Act when the factors and the situation in terms of foreign ownership of our properties do not warrant such a drastic change.”
“Since the enactment of the Residential Properties Act in 1976, ownership of properties by foreigners has never been a big issue because 93% of our properties are protected and not made available to foreigners. So there has never been a need to monitor the percentages of foreign ownership of our properties in a regular way. We have not had these data five years ago. URA started monitoring the purchases of foreigners in the new launches since 1994, and the percentage of foreigners has remained consistently in the same range, between 17% and 28% of new properties, ie, of all condominiums. So when you restrict ownership of private property, and 93% of properties in Singapore are not available to foreigners, then, of course, foreigners can only buy the remaining 7%. And out of the 7% private condominiums, for new launches, foreigners take up between 17% and 28% of these properties. These numbers were released in 1994 and the numbers have remained consistent. It has gone up; it has gone down, depending on each quarter, but it has hovered around this percentage. So there has not been a major shift in the ownership of private properties by foreigners. As to what will be the impact on the property market if we were to restrict foreigners on the purchase of private property in Singapore, I would like to caution that there are several implications. The first implication is the level of confidence on the policies and the market that we operate in Singapore. Singapore has thrived because we have kept our economy open, even in those days when conventional wisdom in many countries kept their markets closed. We wisely kept our markets open, encouraged foreign investments in Singapore, and we had benefited from that policy.”
“I am afraid I lost him somewhere along the line. But I can agree with what he said about the rules of foreigners borrowing in our markets. The question that Mr Low wants answered is this notion that, as a country, we are over-extending ourselves in property. I think this is a macro-economic question. You look at your country's fixed investments, and you ask yourself what percentage is put in different so-called productive assets and non-productive assets. I think what he is trying to get is that we are putting too much in property, which is non-productive assets. The gross investment in Singapore is very high. This translates from our very high rate of savings and that results in a very high rate of investment for macro-economic growth. Out of these domestic investments, you will notice that a high percentage of it goes into infrastructure. A lot of our Government's development expenditure goes into port, airport expansion and roads. These are probably what you will consider productive investments. So if you look at the stage of our development today, our investment in infrastructure and properties is not unduly high. And if you look at the investment in property, and a high percentage of this is in public housing, you can reach the conclusion that our actual investment in private property is also not very high.”
“If you look at the individual, whether or not he has over-extended, as I say, that is up to the individual, ie, what proportion of his savings he wants to put in property and what proportion in other assets. If you look at the total country's investment, ie, the country's net savings translated into investments, as I said earlier, that percentage does not show that we are over-investing in properties.”
“Sir, macro-economists have some rules of thumb about investment in property as a fixed investment. If I remember the numbers correctly, as a percentage of our GDP, investment in fixed assets, primarily properties, is not unduly high in Singapore at this stage of our development. If I were to answer his question, we can look at it in different parameters. The first parameter is, in a country's economic development, what proportion of its investment is in property and what investment is in other economic sectors. Based on the statistics that we have, our share of GDP in fixed property investment is not unduly high at our stage of development. The second parameter that we can look at is: are we over-extended as a country in terms of mortgage loans on property? Again, the banking system is well regulated. There are sufficient rules in place to make sure that the credit-worthiness of borrowers is assessed correctly and limits are put on the amount that they can borrow. These are prudent rules. The bank association on their own have decided to reduce the ceiling of the loans in line with the rising property prices. It shows that the financial market is acting cautiously and there is no extension of the mortgage loan sector.”
“Sir, buying private properties is an individual decision by the investors. As far as the financial market and the banking sector are concerned, there are sufficient rules to make sure that prudence is exercised in the borrowings to purchase properties. Right now, the rules on mortgage loans have made sure that the financial sector exercises due prudence in giving out such loans. Whether or not individuals are over-extended in buying properties, we will have to leave it to the individual.”
“Sir, the Residential Properties Act, passed in 1976, has served us well all these 20 years. I think it will be very unwise to tinker with the Act without studying the situation very carefully. As I have said, the Government is monitoring the situation. The percentage of foreign ownership is not something that has changed over the years. The number has remained fairly constant. It is not something that has gone up dramatically in the last few years. So we would not want to amend the Residential Properties Act unless there are very good reasons for it. As I have explained in my answer, the Act has served us well. We have kept an open economy which encourages foreign investment in Singapore, both in other sectors as well as in the property sector, and the number of foreign purchases in the residential property market is not something that has turned out to be very large. So it will be wise not to tinker with the Act. Mr Low Thia Khiang (Hougang): In the light of escalation of prices of private residential properties, is the Minister of the view that there is a possibility that Singaporeans have over-invested in private properties?”
“We are examining current market practices to see whether we need to adjust the rules on foreign ownership, or dampen excessive property speculation. However, any steps affecting the property market should only be taken after the most careful consideration. Acting hastily and unwisely will shake the faith of investors, local and foreign, in the Government, and undermine the confidence of the market.”
“Other basic factors are: 1) The high growth of incomes and savings among Singaporeans; 2) The increase in resale values of HDB flats, following the liberalisation of HDB's financing rules for resale flats. This has increased the number of HDB owners who can afford to upgrade to or invest in private properties; 3) Low interest rates and readily available mortgage financing; and 4) The prevailing mood of the market, and the confidence that Singapore will enjoy high economic growth and political stability for the foreseeable future. The recent spate of letters and reports in the press on foreign ownership of properties has blown the issue of foreign buyers out of proportion. Besides foreigners, "speculators" have also been blamed for rising property prices. "Speculators" are people who buy properties to resell at a profit after a short holding period, instead of for long term investment or living in. There always is some property speculation, in falling as well as rising markets. Within limits, these "speculators" play a useful intermediary role. They help the property market to function efficiently and bridge the gap between long term buyers and long term sellers. But in a rising market, property speculation can get out of hand. Excessive speculation can create a false mood of euphoria, and push prices up higher than long term fundamentals can justify. Eventually, this will result in a property market collapse, which can seriously damage the rest of the economy. In Japan, when the bubble burst, not only did many home buyers on mortgages suffer, but property companies went bankrupt and many banks incurred huge losses on huge loans on properties and had to be bailed out by the government. The Government is therefore carefully monitoring the situation.”
“Mr Speaker, Sir, the MPs have raised two separate issues: (1) limiting foreign ownership of properties, and (2) curbing property speculation. The policy on foreign ownership of property in Singapore is set out under the Residential Properties Act, passed in 1976. Foreign investors are allowed to invest freely in commercial and industrial properties. For residential properties, foreigners can apply for a licence to develop, but can only purchase condominiums and apartments which are over six storeys. In other words, foreigners are currently excluded from 93% of the total housing stock in Singapore: HDB flats, landed properties, and apartments below six storeys. Foreigners have access to only 7% of the total housing stock. Our economic development strategy succeeded because we encouraged foreign investment in Singapore, including foreign investment in property development. Allowing foreigners to buy private residential properties has encouraged foreign talent to bring their assets and their families to Singapore, and contribute in many other ways to our economy. Foreigners own about 13,000 units, or less than 2% of the total housing stock in Singapore. If we look at the private property segment of about 140,000 units, foreigners own about 9%. The question is whether 2% of total housing stock, or 9% of private residential properties, is too high a percentage for foreigners to own in an open market economy like Singapore. We need and have thrived on the free movement of capital, talent and expertise. Foreign buyers are not the principal cause of the property price increases.”
“Mr Speaker, Sir, can I have your permission to take Question Nos. 1 and 2 together?”
“Many were pleased with the special features like integrated car parking, extensive landscaping and floor to floor windows design to the units. Currently, the number of dwelling units to be designed by the private sector under the Design and Build scheme is up to 10% of the HDB_s Building Programme. For each site, usually 5 to 6 teams of private architects, engineers and contractors are invited to submit detailed design proposals and tender bids. Since HDB only selects the best proposal, other design proposals will have to be rejected. To increase the number of D&B projects to beyond 10% would lead to a very high level of wastage of resources for the unsuccessful teams. In order to cater to the demand of those who prefer D&B flats, HDB will be launching a new type of flats called Design-Plus Flats, to be offered for selection at the end of this year. Similar to D&B flats, these Design-Plus flats will be provided with better designs and finishes. The D&B and Design-Plus flats will be priced higher than the normal HDB flats. However, HDB will maintain the supply of these flats up to 20% of its total supply so as to cater to the needs of others and ensure that HDB flats will remain affordable to Singaporeans. tables - EXAMPLES OF REVISED SALARY PROGRESSION FOR EDUCATION SERVICE OFFICERS (Cols. 1781 - 1784)”
“This will help to maintain subsidies at a reasonable level and to avoid future steep price increases. As it is, the sales proceeds of HDB flats defray only a part of the total development costs. Hence, despite the necessary price adjustments, HDB still continues to suffer losses under its Sales of Flats activity. In FY 94/95, for example, the deficit for the sales of flats amounted to $340 million. Although the development costs are important factors in the pricing of HDB flats, HDB is also mindful of affordability of the purchasers, especially those from the lower income groups. HDB flats are therefore priced at levels which ensure that 3-room and 4-room flats are affordable to the average income families, while those with higher incomes can opt for the bigger 5-room and Executive flats, depending on their preferences for location, design and finish. DESIGN OF HDB FLATS 4. Mr Yeo Toon Chia asked the Minister for National Development (a) how many units of Housing and Development Board (HDB) flats were designed by the private architects; (b) what were the response and feedback from the residents; and (c) whether the HDB is planning to have more flats designed by private architects to provide a variety of designs. Mr Lim Hng Kiang: HDB introduced the Design and Build (D&B) scheme in 1991 to invite the private sector to take part in the design of public housing flats. To-date, two D&B projects have been completed involving about 1,300 units. Another 15 projects involving some 12,800 units were also awarded since. So far, there is a total of 14,100 HDB flats designed by the private architects. There has been very good response from the flat applicants to the D&B flats. The take-up rate for such flats is almost 100%.”
“Whether HDB can increase the number of flats built overall is constrained by the capacity of the construction industry as a whole. HDB already has a significant annual Building Programme of about 30,000 units, and an Upgrading Programme of 15,000 units. In determining the building and upgrading programmes for subsequent years, care must therefore be taken so as not to overheat the construction industry and push up building costs. Nevertheless, as first-time applicants do have a more urgent need for housing, HDB has implemented several measures to help them get their flats early. The allocation of HDB flats under the Registration for Flat System favours first-timers, as 60% of the flats go to them. First-timers therefore have a shorter waiting period than upgraders If the applicant requires a new flat urgently, he could consider applying for a 4-room flat in the North Zone, which is less popular than the other zones. The estimated waiting time for new applications received in January 1996 would be about one year for first-timers, and about one and a half years for upgraders. Secondly, applicants could also consider renting a flat under HDB's Transitional Rental Housing Scheme, while waiting for their new flats. Again, first-timers are given priority over upgraders, and also receive a discount on the rental. Thirdly, rather than queue for a new flat, first-timers can choose to buy a resale flat instead, with the help of the CPF Housing Grant. The grant is worth $40,000, and $50,000 for those who purchase a resale flat in the same town or within 2 kilometres of their parents' home As for the prices of new HDB flats, these have to be adjusted periodically to reflect the increase in construction, land cost and cost of improvements.”
“Mr Yeo Toon Chia asked the Minister for National Development, in view of the increasing number of applicants for Housing and Development Board (HDB) flats, whether the HDB will consider building more flats and expediting the allocation to reduce the waiting time and whether the prices of new HDB flats will be increased in the next three years.”
“In general, water seepage from the external wall of HDB apartment blocks occurs when the facing brick walls are subject to a free fall of rainwater from the roof. The facing brick walls are built with bricks bonded together with cement mortar at the joints. Over time, the cement mortar joints will deteriorate. Water will seep through these joints if they are not repaired. It is the Town Councils_ building maintenance function to carry out repairs to the cement mortar joints of external walls of apartment blocks. Besides cyclical maintenance, Town Councils need to carry out ad-hoc repairs to external wall seepage when the need arises. To minimise ad-hoc repairs, Town Councils can carry out more thorough repairs or special treatment during their Repairs and Redecoration (R&R) programme, depending on the condition and age of the buildings. HDB has implemented measures to reduce the incidence of water seepage from external walls of its apartment blocks. For new projects tendered from June 1995 onwards, HDB has installed rainwater downpipes to discharge the rainwater from the roof direct to the apron drains. HDB will also increasingly introduce cast-in-situ reinforced concrete walls and precast panels in lieu of facing brick walls, especially for the gable-end walls. If water seepage through the external walls occurs in newer buildings that are less than three years old, HDB is prepared to arrange with the original contractors to repair the water seepage. BUILDING MORE HDB FLATS 3.”
“The existing timer-controlled booster pumping system operates and stays activated during preset periods. HDB has developed an improved booster pumping system which will be activated whenever there is demand for water. With the improved system, HDB residents can, therefore, enjoy good water pressure throughout the day, and not during preset periods under the existing timer-controlled booster pumping system. The energy consumption for the improved system is also expected to be lower. The improved system is installed in new HDB apartment blocks in estates such as Bukit Batok, Bukit Panjang and Jurong East. They are scheduled to be completed from 1st April 1996 onwards. As for existing HDB apartment blocks, individual Town Councils can decide whether they wish to modify their existing system when the pumps are due for cyclical replacement. WATER SEEPAGE IN HDB FLATS 2. Mr Yeo Toon Chia asked the Minister for National Development, in view of the many complaints from residents regarding water seepage from external walls of Housing and Development Board (HDB) flats, resulting in damage to household furnishings and fixtures, whether the HDB will take measures to rectify the construction and design defects.”
“This is something that we will work together with the advisors of the grassroots organisations. By and large, we are targeting 75% public housing and 25% private housing mix. By and large, in each estate or each region, we should have that ballpark mix. Everybody should have a fair share of public and private housing. But we will work closely with the advisors and settle on the actual mix for Ang Mo Kio when we develop the estate renewal strategy.”
“I understand the booster pump device costs around $1,500 per device. So it is not something which is too expensive. You probably need one or two such devices per block. It is something within the capability of the town councils. HDB will ensure that there is an adequate supply and work with the town councils to do a progressive retrofitting. Re-roofing is part of the town councils' responsibility. So I am afraid they have to pay for it with their sinking funds. For season car park tickets, again, I am not quite sure what Mr Cheo has asked. My explanation is that the season car park ticket is meant for the resident to park his car in the car park near his flat. For parking in town centres and neighbourhood centres, we want faster turnover and therefore we normally implement hourly parking so that people will go and patronise the shops. So it is not feasible to use a season ticket throughout the new town or throughout Singapore.”
“These new devices are installed in all new HDB flats and town councils should retrofit these devices when they next do R&R of their blocks. These are not very expensive. We need to gear up the manufacturing of this device. It cannot be that all blocks will be fitted with this overnight. HDB will work with the manufacturer to make sure there is an adequate supply of this device and work out a system by which the blocks can be progressively retrofitted. Mr Cheo Chai Chen( In Mandarin): I think the Minister could have misunderstood what I meant just now. I was asking the Minister to consider allowing the present season ticket holder to park his car in every HDB car park. I am not asking for a new type of season parking ticket.”
“HDB has briefed the managing agents and we hope some of the town councils, during their repair cycle, will undertake to refurbish their booster pumps with this new sensor mechanism.”
“For example, during this transition period, HDB continued to repair the stainless steel water tanks or to replace the steel lift cages into stainless steel lift cages. So HDB undertook this responsibility during this transition. Now that the town councils are firmly on their feet, HDB is tailing off some of these specific works. But HDB will still come in for specific works which are necessary for public safety. For example, recently we decided to bring HDB housing estates to the latest fire code standards. We know that if the town councils were to do this they would incur heavy costs. So we sought approval from the Government for HDB to do this as a one-off specific work. HDB got the funds to do so. By and large, the other responsibilities should be undertaken by the town councils through their sinking funds. On the issue of booster pumps, this is something which was highlighted in the press recently. I remember an article written by a Straits Times' reporter reflecting tremendous anguish that she could not bathe when the booster pump was not working. HDB has this responsibility to undertake research and development and through its research and development efforts, HDB has come out with a flow sensor device which allows the booster pump to be activated whenever the sensor detects a demand for water. As many Members know, now that they are in charge of town councils, our booster pumps used to operate either on a pressure device or on a timer device. Now, with modern electronics, it is possible to have a sensor device. In so doing, even though few families may be affected, the booster pump would be activated and water will flow through with adequate pressure. This is not a very expensive device.”
“That would mean the price of a season ticket will be very large if we want to cover all car parks in Singapore. I do not know whether the HDB will find that feasible. Let me just say that the way we manage the car parks in HDB estates is to try and ensure that anybody who buys a season ticket has confidence that there is a lot for him when he comes back. This is done by a judicious matching of demand and supply. If you allow a season car park ticket to be used anywhere, then there will be over demand in those areas which are very popular and the residents who have bought the tickets will not be able to park in those car parks. Right now, we are managing in such a way that residents living in that area have first priority in buying season tickets in the car parks in that area. Mr Low Thia Khiang raised several issues under specific works. First, the objective of specific works. This is a carry-over in the transition from HDB to the town councils. In the past when HDB was responsible for maintenance of HDB estates, HDB took upon itself to undertake what it termed as specific works to improve and maintain the estates and to carry on upgrading them. When the function of maintenance was transferred to the town councils, many of these functions ought to be done by the town councils because many of these are cyclical maintenance. But we recognise that in the transition, when the town councils are building up its resources and capabilities, it will not be fair for the town councils to undertake many of these responsibilities immediately. Therefore, HDB had several programmes from 1988 till 1991, and some continued till 1993, in which HDB undertook some of these specific works.”
“This is a reasonable request. I will ask HDB to consider this and to extend the tenure from two years plus one year to cover the entire period until the new flats are ready. Mr Cheo Chai Chen raised the issue of HDB shop rentals. When the shop tenants sign the tenancy agreement, they agree to a 30% increase after the 3-year tenure or to the market rent, whichever is lower. This allows the increases to be cushioned by this cap of 30% over three years. If, as Mr Cheo says, the economy does badly, then we can imagine the retail rental market to also soften, in which case the market rent will be much lower and the increases will not be beyond the market rent. Mr Cheo also asked for increased allocation of HDB rental flats. Let me inform the House that because of the success of our various schemes to encourage low income families to own flats, we have seen a drastic reduction in the number of applicants for rental flats. In July 1994, there were 3,100 applicants in the waiting list for rental flats. Now, we have only 1,400. We are trying to process the applications for rental flats quickly. The main difficulty is the choosiness of the applicants. We have a certain stock of rental flats but this may not correspond to what the applicants want. Therefore, we find repeated rejections of the offers. Dr Tan Cheng Bock asked whether HDB will study the matter of repairs of sinking aprons, particularly in the way we anchor the sewerage pipes. I will ask HDB to take a look at the specific situation of the softer ground in Pandan Valley and Teban Gardens. We will see whether there is any justification to have a different method of repair. I will ask HDB to look into it. Mr Cheo asked whether HDB can introduce a car park season ticket that will cover all areas in Singapore.”
“Whenever we set up a one-counter service, as we have done for many situations, we lose the specialisation of having separate services. It is not possible for that one counter to be extremely well versed, particularly in the intricacies of individual programmes. I am sure, as MPs, they would have come across some of their constituents who have alleged that they had been wrongly advised by the counter staff. This invariably happens because there is miscommunication or the way they ask the questions or they do not provide sufficient details, particularly through the phone. Although we try to have a one-counter service, we must recognise that we do lose specialisation and the intricacies may not be available at that counter. So we need to have a mix of one-counter service that provides general inquiries and, whenever there are complications, the resident is referred to a senior officer who can deal with the intricacies of the case. 3.30 pm Mr Zulkifli asked whether the 60-40 allocation is adequate. As I have explained earlier, HDB is monitoring the situation. We have to strike a balance between the first-timers and the upgraders. Right now, we are giving priority to the first-timers with the 60-40 allocation. If this is inadequate, over time we may have to adjust this ratio. But residents who want faster allocation can choose the North Zone where the allocation is faster. The pattern has remained unchanged. There is still a very high proportion applying for the North East Zone, particularly the bigger flats. As a result, the queue for North East Zone is very much longer. Dr Tan Cheng Bock asked whether it is possible to extend the tenure of the transitional rental housing scheme, until the residents are able to take delivery of their new flats.”
“Sir, Mr Lau Ping Sum asked about the development projects in Ang Mo Kio. The HDB and URA will be working closely with the advisers and the grassroots leaders to develop the estate renewal strategy for Ang Mo Kio, along the same lines as the pilot project for Toa Payoh. We hope to be able to draw up the first draft proposals by June this year. This would incorporate not only redevelopment of the town centre, but also ideas for bringing in more HDB developments in Ang Mo Kio. To do so, we have to identify some Selective En Bloc Redevelopment Schemes so as to generate new flats and start a small chain reaction of redevelopment in Ang Mo Kio. At the same time, some of the vacant lands in Ang Mo Kio have been set aside for private housing so that those who live in Ang Mo Kio can aspire to upgrade to private housing also within Ang Mo Kio New Town. But I want to assure the Member that there will be a judicious mix between public housing and private housing in Ang Mo Kio. So we are looking towards a June target date for the first draft to be ready. In that plan, we will also demarcate the precincts for the Main Upgrading Programme. Dr Ho Tat Kin asked whether applicants' inquiries to HDB can be better improved through the use of Internet and E-mail. Let me assure the Member that HDB will consider his suggestion. HDB tries to improve the various avenues by which the public can phone in to check with the HDB on certain developments. But at the same time, we have to be careful to make sure that all Singaporeans are served, not just those who have access to the computer, Internet or E-mail. On his point about a one-counter service, HDB tries to do this as much as possible, but there are some limitations on how far this can be extended.”
“I think the older Members of Parliament in this House will remember the abuses of the resettlement policy which were debated widely in this House in 1988/1989. It is not just planting of fruit trees. We paid them for the improvements done to their homes. So they got concrete dump trucks to lay out concrete in the weekend before the officials came and because of the new and freshly laid concrete, they were compensated. It went on and on - wells, chicken farms, fruit trees, fish ponds, prawn ponds. We went about it in a very enlightened way. We felt that, as farmers, we ought to pay them a fair compensation in dislocating them even though they did not own the land. So we itemised each item of compensation but they abused the system. In the end, CPIB had to come in. The case is now settled. Many of them were required to pay back some of the excessive claims. For the TOL case, it will be beyond the role of the Government to offer alternatives for every businessman who tenders for a Temporary Occupation Licence. They went in, knowing that these are on TOLs and when the land is required, the land will be taken back. If you are renting a shop in a private shopping centre and when the owner wants to refurbish it, does the owner offer you another shop in the shopping centre?”
“CPIB had to go in to investigate. In addition, we offered an HDB flat so that instead of living on the farm, they now live in an HDB flat. I think the Government had been very fair to these people who squatted on Government land, by offering them an HDB flat to live in and fair compensation for loss of their livelihood. With the booming Singapore economy, they could continue to find employment and continue a new lease of life. The third category which he brought up regarding Woodlands, Avenue 9, are people on TOL. TOL stands for Temporary Occupation Licence. They tendered for the land knowing that they are on TOL. They tendered for the land to store their equipment, knowing that at the end of the Temporary Occupation Licence, the Government will take back the land because it has plans for redevelopment. As businessmen, they went in with their eyes open. They can make use of the land for storage, for their business, for a couple of years on TOL, and they are expected to give up the land upon completion of the TOL. Do these people deserve compensation? For the three cases which Mr Cheo raised, can I ask my officials to take down these particulars and respond to him?”