Mah Bow Tan
Singapore
“The previous generation of Singaporeans overcame huge odds together to create this improbable nation which we call home. Let this generation work as one to define our country for the next lap of our journey. Sir, on this note, I fully support the amended Motion. Page: 143”
“Like all upgrading programmes, there is a certain budget, and a certain pace at which we will build. We have completed the LUP and now we are going on towards the HIP. The Estate Upgrading Programme (EUP) is ongoing.”
“For those who cannot afford home ownership, we will provide rental flats. For the rest where there is hardship involved, that is where the safety net comes in. I do not think we should make the safety net so wide as to bring in everybody.”
“Building a studio apartment is no different from building any other HDB flat. If a person applies now and the building works start now, he can get it in two-and-a-half years to three years. We have stepped up the building of studio apartments over the last couple of years.”
“Mdm Halimah Yacob asked the Minister for Health (a) how many people have signed an Advance Medical Directive (AMD) and how many have revoked them since; and (b) whether there is a need to review the current rules on AMDs which do not require a person who has revoked the AMD to inform the Registrar, thus causing uncertainty for hospitals t…”
“Parents who wish to exert more control over the maximum mobile service charges incurred by their children may consider service options such as mobile pre-paid cards. IDA is aware of the public's concerns on mobile subscriptions, and will continually review policies and look into measures to further protect the interest of consumers.”
The complete record
Every one of 3,030 lines we hold for Mah Bow Tan, in date order, each linked to its source. Free to read, in full, without an account. Page 25 of 61.
“If Members would recall recently, BCA had to enact legislation to make it compulsory for building owners and individual households to fit or refit the airconditioners in high-rise buildings. Then we had the problem of falling windows. I cannot emphasise enough the dangers that are posed by dislodged windows, falling airconditioners, tiles, or any other external parts of buildings, particularly in our predominantly high-rise developments. And this matter needs to be taken seriously because lives are at stake. So owners must assume responsibility for building maintenance. When I last spoke about the issue of falling windows in this House, I mentioned that we would be looking at ways to mitigate this issue. We have two choices. We can continue with public education alone, or we can strengthen the legislation to inculcate a strong maintenance culture. Or we can preferably do both. In this way, we reduce the dangers to the public of objects falling down from high-rise buildings, whether they are private or HDB flats. I suggest, again, that this matter be deliberated at the Select Committee, and we will consider introducing appropriate provisions in the Bill to prosecute owners who allow their fittings to fall and endanger the public, as has been suggested by several Members. I had also announced previously that BCA would be considering legislating the mandatory periodic inspections of windows. Having carefully considered the public and industry feedback on the subject, I wish to say that BCA will not proceed with the mandatory window inspection proposal at least for the time being.”
“I know it is very difficult to do so. Many condominium MCs have difficulty in getting people to come forward to serve. But it is their own property that they are being asked to manage. And if they abdicate this responsibility, they do not exercise those responsbilities, then the danger is that those who do come forward may actually do something that they may not agree with ultimately, and then it is too late for them to complain. Nevertheless, I would ask the BCA, together with the industry associations like SISV, and so on, to take steps to educate owners, MCs, SPs, MAs, about how the changes in the Act will affect them. Talking about managing agents (MAs), I would agree with Dr Teo, Dr Amy Khor and others that there must be greater professionalism among the managing agents. Here, again, I come back to my point, Government can only provide the overall framework and we can facilitate the professional development of MAs. But the industry itself has to take the lead in this. And the issue of whether to legislate and, if so, to what extent, we can discuss this at the Select Committee. But I note that there are plans by industry associations, like the SISV, to accredit MAs in Singapore to help raise the standard of professionalism in the management of strata developments. I believe this is a step in the right direction, and I would support this. Sir, I also share the views and the concerns of Members, like Mr Othman Haron Eusofe and Dr Teo Ho Pin, that we must do something about the mainte nance culture in Singapore. There is, I believe, not a strong culture of awareness of maintenance in Singapore.”
“I hope Members would agree with me, however, that this community spirit, like attitude change, like mindset change, cannot be legislated. This is the sentiment behind what Mrs Fang Ai Lian was talking about - getting more people to be involved. Strata developments are founded on the concept of community living - community living with shared ownership of common property and individual ownership of their own unit, their strata title. So, with this concept, community living must require of each resident a certain amount of give and take and it must require of each resident, of each subsidiary proprietor, a knowledge of what are his legal rights and responsibilities, what are his duties and liabilities. The legislation can only create a framework, one, which I have explained, will be based on self-governance and a clear definition of the demarcation of responsibilities among the different stakeholders. So, hopefully, this framework, together with a large dose of the give and take, will create and foster this conducive environment for various parties to work together to resolve issues and to do something for the common good of the community. To achieve this goal, SPs as well as other stakeholders will have to take on more responsibilities and they will have to exercise these responsibilities fairly and wisely within this framework of greater self-governance. And that is the reason why we have decided that we will decriminalise many of the offences, those offences that will not generally affect public interest, and to reduce the extent of Government involvement. Here, I would agree with Mrs Fang Ai Lian that we should encourage strata title owners to be more aware of their rights and responsibilities of ownership to come forward and to get involved.”
“So the legislation needs further amendments to provide for more effective management of strata developments and to recognise that, with more mixed-use developments, there will be more differentiation of interests. There will be different interest groups within a particular development. And this is the reason why we introduce this option, and I stress the word, it is an "option" of a two-tier MC system. We can then provide flexibility to MCs to make decisions on common properties, on the one hand, that are used by everybody and also limited common properties that are used by specific groups. I stress that there is no intention to segregate groups within the strata development, a concern that was raised by Mr Ang Mong Seng. The interactions between the different groups can still be facilitated within this two-tier system through the main MC. The reason why we went through this exercise was because there has been a significant amount of feedback concerning the problems of mixed-use developments where you have got disputes between MCs, you have got management problems and, basically, many of these complaints relate to the governance of the MCs. So what we must do fundamentally is to recognise that the MC is the supreme decision-making body in the strata development which has been elected by the SPs to take charge of their well-being but, at the same time, we also recognise that there are different interest groups. So it makes sense to empower the MCs to decide on issues related to the estates for the benefit of the subsidiary proprietors. I agree with the sentiments expressed by Members that the legislation should strive to enhance and strengthen the community spirit among the SPs. I think the point that was made very strongly by Dr Teo Ho Pin.”
“This is something that has been fed back to us which is that, for many large developments, the requirement to have 30% of SPs present to form a quorum is not very easy to achieve. In fact, say, for large developments of 1,000 units or more, 30% is equivalent to 300 SPs, and many a time, they find it very difficult to gather these 300 SPs. And this is the reason why, in the spirit of making it easier for AGMs to be convened, the quorum has been reduced to either a minimum of 100 SPs or 30%. But these are not hard and fast numbers. The industry has made this suggestion. There has been a consensus so far, but let us leave this for discussion at the Select Committee. Mdm Cynthia Phua made the same point about whether we should implement, not just for new developments but also for existing developments, the idea of a two-tier MC. I have the same response I gave to Dr Amy Khor just now - let us start off with the new developments, learn from the experience and then, if necessary, we can transfer the experience and the lessons learned and extend it to existing developments subsequently. Sir, let me now touch on the general intent behind the proposed amendments in this Bill. In putting forth this Bill, we recognise, as I have explained earlier, that we do not have a long history of strata title or managing strata developments. We enacted the LTSA only in 1967. This was 37 years ago. Then, the last major amendment to the LTSA was made in 1987, almost two decades ago. Since then, the number of strata units and the number of MCs, which already formed a significant percentage of total dwelling units, have grown and will continue to grow in the years to come.”
“But, again, let us discuss this at the Select Committee. She mentioned another significant point, which is windows. Yes, it is correct that windows are currently considered to be part of common property. Dr Khor proposed that we should now make a distinction between those windows that can be opened and consider those windows to be the responsibility of subsidiary proprietors, and to make the fixed windows, such as curtain walls, the responsibility of management corporations. I think this is a good suggestion. But I think I should bring to her attention the fact that this decision to make windows part of common property was taken at the last Select Committee hearing in 1987 when the last major review of the Land Titles (Strata) Act was undertaken. And, in fact, this decision was made at the request of MCs of the SISV, as well as the Law Society, for I believe, aesthetic reasons, to make sure that the subsidiary proprietors do not change the windows. But I think times have changed and it is timely for us to relook at this provision. So, I would like to thank her for this suggestion. The other point she made was whether we can widen the mandate or the ability of the Strata Titles Board to deal with different types of conflicts. I believe we can consider this, to widen the jurisdiction of the Strata Titles Board. But I would like to allow representations from the industry before we do this. Mr Low Thia Khiang asked several very specific questions. I hope that these questions can be raised at the Select Committee. But I thought I should respond to a few of them. For example, why do we require a quorum of only 100 SPs? Why so few? Does it mean that the issue at hand is not so important? No. The answer is a practical one.”
“Dr Teo Ho Pin mentioned the various kinds of documents, what kind of documents as well as how many documents to hand over to the MCs. I think this is something the Select Committee can consider and discuss. He also asked how we allocate share values, and also what is the code of practice for managing agents. These are issues which I hope members of the public as well as members of the industry will raise. Dr Amy Khor asked under what circumstances we allow sub-MCs for new as well as existing developments. Again, as I have explained, we would like to start off with the new developments, because I do not think this is a totally trouble-free proposal, and I expect that there will be problems associated with creating another level of management corporation in mixed developments. Will they be in conflict? How will they delineate common property, and so on and so forth? So, I think it is wise for us to implement it first for new developments and to learn from this experience and after a while, to then apply it to existing developments, if they wish to opt for it. This is a more cautious approach. Yet, at the same time, the Bill also allows the Minister to approve existing developments which so wish to have multi-tier MCs under certain circumstances. These circumstances are many and, again, I would suggest the Member can raise these at the Select Committee hearing, and we can go into it in greater detail. She also asked, why so many resolutions? She counted six resolutions in all. In fact, this was a result of some feedback from the industry that, depending on the issue concerned, we need to have different levels of consensus. The more serious the issue, obviously the higher the level of consensus required. And I think this is a reasonable proposition.”
“Mr Speaker, Sir, first of all, let me thank all the Members who have spoken for their support of the Bill and for their very comprehensive and detailed comments. As I mentioned in my Second Reading speech, we have had extensive consultations with members of the public, industry stakeholders, and members of the GPC for National Development. But I accept that this Bill is highly technical and the issues are very complex. In fact, the Bill itself runs to more than 200 pages. The provisions of this Bill have a far-reaching impact on many people in Singapore, not just those who live in strata title units, condominiums, etc. There are some 170,000 of these households and they form a significant proportion ˆ’ something like 15% ˆ’ of the total number of households or dwelling units in Singapore. Apart from that, there are also the management corporations (2,700 of them). There are the managing agents who have been hired by the management corporations to look after these units, and so on and so forth. So there are many stakeholders involved in this issue. Therefore, I agree with Members ˆ’ Dr Teo Ho Pin, Dr Amy Khor, Mr Othman Haron Eusofe, Mdm Cynthia Phua, and other Members ˆ’ that we refer this Bill to a Select Committee. This will allow the Bill to be more thoroughly scrutinised, and all relevant views, and views which have not yet been heard, can be so heard before it is finalised and enacted. Sir, since the Bill is going to a Select Committee, I will not address all the points that have been raised by the Members, especially some of the more technical ones. But I will respond very briefly to some of them, before I touch on the more general intent behind the proposed amendments in the Bill.”
“The administrative provision requiring developers to place deposits with the COB is therefore of little value in today's context and will be removed. Sir, this Bill will substantively improve the existing framework for the management and maintenance of strata developments in Singapore. Sir, I beg to move. Question proposed.”
“As a result, there are varying practices in the industry. Under the Bill, the developer would have to set up a maintenance fund when any purchaser starts to pay contribution, and pay maintenance contributions to the fund for all unsold units, as well as for sold units that have not been handed over to purchasers. Furnishing copy of audited accounts of the maintenance fund to purchasers Developers are currently required to furnish a copy of the audited accounts of the maintenance fund to the COB, but are not required to extend a copy to the purchasers. In fact, some developers have refused to do so upon purchasers' request. As the purchasers contribute to the maintenance fund, they have a legitimate right to know how the money is spent. The Bill will require the developer to furnish a copy of the audited account of the maintenance fund to purchasers upon request, as well as to allow them to view relevant records and documents. Removing the requirement for the developer to place a deposit An existing provision in the BCPA requires the developer to place a deposit with the COB that is to pay for any defects rectification in the common property occurring within three years after the certificate of statutory completion has been issued. Unused deposit would be released to the developer at the end of the period. Since the introduction of this requirement in 1982, the COB has rarely been called upon to use the deposit. The obligation of the developer to rectify defects is already spelt out in the sale and purchase agreement. Where defects in the common property are concerned, recent court decisions have established that the MC could seek redress from the developers, even after the defects liability period.”
“Notwithstanding that such non-compliance is decriminalised, the aggrieved party could still seek recourse through the Strata Titles Boards or take civil action via the courts. Enhancing the Powers of the MCs The MC should be the supreme decision-making body of a strata development. However, when a common property is altered that benefits any SP, the MC presently does not have the power to alter the maintenance contributions arising from that alteration. Under the Bill, the MC would be able to decide on changes to such contributions by passing a comprehensive resolution; in other words, obtaining the consent of at least 90% of the aggregate share value of all the lots in the development. The MC will also no longer need to obtain the Commissioner of Buildings's approval before altering or erecting structures on common property during the initial period, when the developer is still maintaining the strata development. The MC could proceed with the work by passing a special resolution, ie, obtaining consent of at least 75% of the share value of the valid votes at a general meeting. The Bill will also empower the MC to lease out common property or confer special privileges for its use to SPs and others. Decisions on short-term leases of up to one year can be made without the need for a resolution to be passed at a general meeting. However, leases up to three years will require a special resolution, ie, consent of 75% of valid votes, while longer leases will require 90% of valid votes. Amendments in the BCPA Sir, I will now move on to the key amendments related to the BCPA. Making the developer contribute to the maintenance of unsold units Currently, the law is not clear on the liability of the developer to contribute to the maintenance of unsold units in a development.”
“MAs will not be allowed to canvass for votes on behalf of a SP or council member. To prevent any conflict of interests, SPs can serve as MAs only with the approval of the MC. For better corporate governance, the tenure of the treasurer in the council will be limited to no more than two consecutive terms. To strengthen the management framework, the Bill also proposes to reduce the "initial period" when the developer is managing the development, from a maximum of 24 months to a maximum of 12 months or on the day of the first AGM, whichever is earlier. With this change, the MC can then take over the management of the development within a shorter time. The Bill also proposes to reduce the quorum for general meetings from 50% of the aggregate share value to either 30% of the share value or not less than 100 SPs present, whichever is lower, either in person or by proxy. The purpose of this is to make it easier for MCs to convene a general meeting on urgent issues. Decriminalising Non-Compliance Consistent with the objective of reducing Government intervention and enhancing self-regulation, the Bill proposes to decriminalise those offences in the existing law that do not have a significant impact on public interest. Only offences related to fraud and cheating or regulatory provisions where the obligation is to the Government would be retained, eg, furnishing false information, or failing to comply with the lawful demands of the Commissioner of Buildings. Some examples of offences that will be decriminalised are: failure of SPs to pay maintenance charges; breach of the by-laws by SPs; failure of the MC to provide information to SPs; and failure of any person to hand over records or information to the MC.”
“The spirit behind this provision is to allow for flexible management of strata developments, with clear differentiation in the interests of various user groups, and clear physical delineation of common properties. For a start, the two-tier MC system will be applicable only to new developments. Once we gain more experience, we can consider applying it to existing developments. There is a provision allowing the Minister to approve the conversion of an existing single MC to a two-tier MC, provided the MC is able to pass a comprehensive resolution for the conversion. Improving Management Framework The Bill also proposes several other amendments to improve the clarity of the existing provisions and the effectiveness of the strata management framework. For example, the Bill explicitly sets out the documents that the developer has to hand over to the MC at the first AGM or make available for inspection. There were cases in the past where the MCs had to resort to legal action to obtain certain documents and records from the developers. With the provision in the Bill, I hope such disputes will no longer occur. Some MCs were also in the news lately. Various issues and allegations involving them were widely reported in the media. These include: (a) Irregularities in collection of maintenance contributions; (b) Managing Agents (MAs) canvassing for votes on behalf of certain groups; (c) SPs elected to office while in arrears of maintenance contributions; and (d) Council members or MAs failing to declare their interests when making decisions on behalf of the MC. The Bill seeks to curb such abuses or undesirable practices. An SP, who is in arrears, would no longer qualify for election as a council member.”
“Each group would be more concerned about the management and maintenance of common properties that have a direct impact on it. The MC would have difficulty implementing improvements to common properties, as the benefits may be perceived to accrue more to a certain group than to others. We do not have a long enough experience in managing mixed-use strata developments. The LTSA was enacted only in 1967. Our laws have not adequately provided for such conflicts to be resolved. Therefore, we have looked at more established strata management models in other countries, such as Canada and Australia, which have a longer history. Sir, this Bill proposes to introduce an option of a two-tier MC system for mixed-use developments, adapted from the British Columbia model. There will be a main MC responsible for the property common to all subsidiary proprietors (SPs), while sub-MCs will manage the "limited common property" intended for the exclusive use of their respective user groups. These sub-MCs will have the right to levy contributions from them for its maintenance or improvement. This option will also be extended to residential developments with different types of strata lots. For example, a residential development may have high-rise tower blocks and low-rise walk-up blocks or town houses. There could then be one sub-MC for the high-rise towers and another sub-MC for the low-rise blocks or town houses. This would address the usual complaint that certain common properties serve only a particular group of residents, eg, lifts in high-rise blocks. Sir, the intention is neither to create segregations within a community nor to encourage the proliferation of MCs.”
“However, some shortcomings and unanticipated problems with the provisions of the Acts have surfaced over the past few years. I should also point out that since the last major review of the LTSA, which was in 1987, the number of strata units and their MCs have more than doubled to 170,000 strata units and 2,700 MCs respectively. Sir, this Bill seeks to provide for more effective management and maintenance of strata developments, recognising differences in interests amongst stakeholders. Our thrust is to provide flexibility by empowering MCs to make decisions, and therefore encourage self-regulation. This will then allow Government to reduce its involvement in the affairs of the MCs. In undertaking the review that culminated in the preparation of the Bill, the Building and Construction Authority (BCA) has studied similar legislation in Australia and Canada, consulted extensively with the industry, and held an open consultation session involving members of the public. Discussions were also held with relevant Government agencies as well as the GPC for National Development. Useful features found in these foreign legislation as well as feedback from the industry and public have been incorporated in the Bill. Amendments to the LTSA I shall now elaborate on the key amendments in this Bill, beginning first with those related to the LTSA. Providing for Mixed-use Strata Developments The present system for managing strata developments allows only one MC to be formed for each strata development. However, in a mixed-use development, eg, a mixed shopping, office and residential complex, there are various user groups whose interests and priorities are likely to be different.”
“Mr Speaker, Sir, I beg to move, "That the Bill be read a Second time." Building Maintenance and Management Act Sir, two pieces of legislation currently govern the management and maintenance of buildings in Singapore. These are the Land Titles (Strata) Act (LTSA) and the Buildings and Common Property (Maintenance and Management) Act (BCPA). This Bill proposes to merge Part IV and Part VI of the LTSA and the entire BCPA into an integrated "Building Maintenance and Management Act". Part IV of the LTSA governs the management of strata sub-divided buildings. Part VI relates to the Strata Titles Boards, which provide an avenue for resolving management disputes in strata developments. On the other hand, the BCPA governs the maintenance of all buildings, and management of strata developments prior to the formation of the Management Corporation or MC. The current BCPA will be repealed. For ease of administration and convenience to the public, the new Act will come under MND's purview. The Ministry of Law will continue to administer the reduced LTSA, which covers the set-up of the strata scheme and the en-bloc sales of property. Transferring Strata Titles Boards to MND The Government has also decided to transfer the administration of the Strata Titles Boards from the Ministry of Law to the Ministry of National Developemnt. This takes into account that most of the disputes heard by the Strata Titles Boards are related to the management and maintenance of buildings, which are under the purview of MND. However, the Strata Titles Boards will continue to hear disputes on en-bloc property sales, even after the transfer from the Ministry of Law. Need for Change Sir, let me explain why there is a need for change. Both the LTSA and the BCPA have served us well.”
“For households who are in genuine financial difficulty - and there are some - most Town Councils assist by allowing these households to pay their S&CC arrears in instalments. They may also approach the Community Development Councils or other social service agencies for assistance. However, for those who have the means to pay but refuse to, eg, they give higher priority to paying other expenses, Town Councils will need to step up their enforcement actions. The Government has also helped HDB households cope with the economic recession and GST increase by helping them pay part of their S&CC through the monthly S&CC rebates and S&CC waivers. The Government will continue to grant S&CC rebates to HDB households until 31st March 2008, as part of the GST-offset package.”
“Sir, there are certain areas or particular blocks where the number of unsold flats is much higher. For these areas, HDB would pay particular attention to the issue of security. And the Town Councils have also been alerted, so that when it comes to issues like maintenance and cleaning and so on, particular attention is paid to them. I come back to the main point, which is the 10,000 flats that are availabe in these estates. It is not a very large number and I guess, as the demand picks up, they will be sold. So, this is a temporary problem. So long as HDB and the Town Councils are aware of it and take the necessary steps, I do not think that there is any cause for concern. SERVICE AND CONSERVANCY FEES (Arrears) 8. Dr Chong Weng Chiew asked the Minister for National Development (a) what is the current arrears of service and conservancy fees; (b) what is this amount as a percentage of total billing; and (c) whether his Ministry has plans to offer assistance to Town Councils to help them negotiate the delicate balance between helping households in genuine financial difficulties and the efficient collection of such fees. The Senior Parliamentary Secretary to the Minister for National Development (Assoc. Prof. Koo Tsai Kee) (for the Minister for National Development): Mr Speaker, Sir, as at end-January 2004, 51,450 or 5.9% of HDB residential households were in S&CC arrears for three months or more. The total amount of arrears outstanding is about $24.7 million, which is slightly more than half the total monthly S&CC billing by all Town Councils. Sir, the Government has been helping Town Councils to finance their operations through an annual operating grant. In FY2003, this amount was $84.3 million. This has enabled Town Councils to keep their monthly S&CC very affordable.”
“I do not have the exact percentage of the flats that are five years and older. It is not very high. But whether they have been built five years or earlier, they would still be in the system. They would be sold eventually. As I indicated in my reply, I believe that they will eventually be taken up because, first of all, the demand is growing and, secondly, the supply is being cut back. I believe that as new households are being formed, there will be a demand for such flats, especially when the prices have been reduced to what, I think, are very attractive levels.”
“I expect the demand for HDB flats to improve, with the improvement in the economy, and the unsold flats will be taken up in due course.”
“Mr Speaker, Sir, HDB has about 10,000 flats available for sale. Of these, about 8,000 are located in the non-mature estates such as Choa Chu Kang, Woodlands, Jurong West, Sengkang and Punggol. These are either flats previously built under the now-suspended Registration for Flat System, or are surplus SERS replacement flats that have become available after meeting the rehousing needs of SERS lessees. In pricing flats, HDB takes into account the attributes of the flats, such as the age, facing and storey height, as well as the prevailing resale prices of comparable flats. The prices of HDB flats are pegged below their equivalent market prices at the time of offer so that eligible flat buyers enjoy a subsidy. The large number of unsold flats is due to the economic downturn, when demand for flats dropped sharply. To take into account the weaker resale prices and the age of these flats, HDB has adjusted their prices downwards when re-offering them for sale. HDB has also implemented new modes of sale for these flats. Those that are in ample supply are offered under Walk-In Selection, which allows buyers to walk in and book a unit on the spot. The more popular flats, such as SERS replacement flats located in the mature estates, are offered through regular balloting exercises. These have proven effective in enabling HDB to sell its unsold flats. HDB will continue to promote the sale of the unsold flats to eligible families, while scaling back new supply of flats. HDB has in fact stopped building new 5-room flats for sale to the public since 2002. It will do so until the current stock of unsold 5-room and larger flats is reduced. HDB will also employ various marketing initiatives, such as roadshows and media advertisements, to reach out to prospective buyers.”
“They include the Handicaps Welfare Association, Singapore Association of Visually Handicapped, Asian Women's Welfare Association and all the Government agencies like MCDS, URA, NEA, HDB, LTA, NCSS and also professional bodies like NUS, SIA, IES, REDAS. Of course, we will welcome any other bodies that need to be included in this committee. Sir, I have answered most of the questions.”
“In any case, our building codes today are performance-based. In other words, you do not need to design to our codes, you just design to our safety standards. On barrier-free accesibility, Mrs Yu-Foo, Ms Braema and Mr Andy Gan raised several concerns. The Code on Barrier-Free Accessibility already includes design guidelines on family-friendly facilities in buildings, like shopping complexes and supermarkets, frequented by families and young children. In addition, National Parks Board has a programme to make parks barrier-free and conducive for the elderly. Ms Braema asked why the Code is not applied to all buildings and developments. There is a good reason for that. First, it will be very costly to the owners of existing buildings to comply with the Code. Existing buildings not designed with such provisions will have to carry major retrofitting works if the Code was applied retrospectively. Moreoever, the Building Control Act does not allow us to apply the Code backwards. Secondly, the landed residential buildings, ie, the private domain bungalows, semi-detached and terraces, are private properties and only used by the owners exclusively for their guests or friends. The owners should be allowed to decide whether to input the necessary barrier-free features or not. We should not impose such requirements in private domain houses. Lastly, plant equipment rooms in buildings are not meant for public access at all. Why would anybody go into an engine room or plant room? So there is no need to provide such features in these rooms. The Code is reviewed regularly every five years and involves all parties which Ms Braema and Mr Andy Gan would like us to include.”
“BCA intends to carry out a comprehensive education programme for stakeholders and building maintenance and management. Sir, regarding the need to review safety standards for maintenance, BCA recently reviewed the periodic building inspection process. From 1st November 2003, BCA has required professional engineers (PEs) to refer to the structural layout plans when carrying out visual inspections. Sir, on the questions concerning the construction workforce, the Government has been trying to encourage locals to join the construction workforce, with some success, not total success. But BCA's records show that locals prefer to take up managerial and supervisory positions in the industry and not so much as trademan, ie, labour work. This is a physically demanding nature of contruction work. But we will redouble our efforts and try to recruit more. Sir, in a civil emergency, such that when a building collapses, the Singapore Civil Defence Force will be activated as the lead agency for disaster management. Our resident construction workforce has the required skills to help reinstate public amenities and infrastructure. Sir, on the cost of construction which was raised by Prof. Low Seow Chay, there is a perception that the cost of construction in Singapore is rather high. About 2-3 years ago, we commissioned a study to verify whether that perception is correct and the result is different from the perception. Our building regulations are not more onerous than those in the UK or the USA. In fact, our construction costs are lower than in Hong Kong and Sydney, though higher than in Kuala Lumpur, we concede. In short, although our construction cost is higher than in Malaysia, we are competitive and is unlikely to be unduly affected by our building codes.”
“Since 1986, the SAC has accredited many local laboratories that may test and certify building materials and products under the Singapore Laboratory Accreditation Scheme. Sir, on fast-track construction, Dr Teo also spoke of the need to develop our contractors' capabilities for fast-track construction. The BCA has introduced a buildable design legislation in Janaury 2001. The legislation requires buildings to be designed to allow contractors to adopt labour efficient and fast construction methods. Dry construction using pre-fab components is promoted while conventional wet trades, such as brick walling and plastering are discouraged. The outcome so far has been positive. The use of brick walls in the private residential sector has decreased substantitally. At the same time, the use of pre-cast concrete construction has increased significantly. Pre-fab technology is also promoted through the incentives offered to contractors and prefabricators to mechanise their operations and adopt pre-fab construction methods. Tax allowance is given for a purchase of construction equipment and financial grants for upgrading pre-cast production techniques. BCA also encourages wider use of design-and-build contracts to promote fast-track construction. The amendments to the Building Control Act, the Architects Act and the Professional Engineers Act which took effect from 1st Janaury this year, provided greater flexibility to design-and-build arrangements for improved integration of services, faster construction and cost savings. Sir, I agree with Dr Teo on the need to educate all stakeholders of buildings and facilities to have responsibility for building maintenance. The Minister for National Development has reiterated that the maintenance is a shared responsibility.”
“BCA's approach therefore is to specify and legislate only minimum performance requirements to ensure safe buildings that are fit for occupancy. With regard to the question on sustainable development, BCA is actively promoting it in construction projects. From July this year, contractors in the A1 and A2 categories of the Contractors Registry Scheme will be required to obtain ISO 14000 Certification on Environmental Management. This aims to minimise environmental impact of their construction activities. BCA and NEA are also exploring the feasibility of introducing environmental impact assessment for existing and new buildings. On the building research institute, Dr Teo asked if Singapore could become a research centre for tropical climate building construction. Sir, the answer must be yes. In November 2000, BCA and NUS jointly established a Centre for Total Building Performance to promote and facilitate R&D collaborations amongst public agencies, tertiary institutions and the private sector so as to make Singapore a hub for tropical building research. The Centre's current R&D activities focuses on environment-related strategies such as sky-rise greening, air quality of indoor environment and energy efficiency. Generous funding for programmes, such as the A*STAR's Construction R&D programme and the Innovation Development Scheme has enabled research bodies and private sector companies to attract and recruit a strong group of full-time researchers. Sir, on the suggestion of developing Singapore into a regional testing centre for building materials and products, I wish to point out that the Singapore Accreditation Council (SAC) of SPRING Singapore was established for this purpose.”
“They have organised trade missions to help Singapore firms to gain a foothold in these markets, and they have also facilitated the formation of consortia, ie, joint ventures, among local contractors in order to further expand their markets overseas. My Minister of State, my Senior Parliamentary Secretary and myself have all been involved in these promotion efforts and will continue to do so in order to help the local industry. Overseas orders for 2003, just to put this on record, reached about $1 billion, and I expect that we can grow this number even further, if local contractors can work together and, with Government's facilitation, further expand their business overseas. In this way, we can develop an external wing, capitalise on the Singapore brand name, and we can offer value-added services to establish a significant presence overseas for our construction industry. Sir, may I now ask my Senior Parliamentary Secretary to address the other questions. Assoc. Prof. Koo Tsai Kee: Sir, on behalf of my Minister, I shall address the remaining questions and suggestions on the construction industry. 12.00 noon Sir, let me begin with the questions and comments on total building performance, building maintenance and the construction technology and workforce raised by Dr Teo Ho Pin. Dr Teo suggested amending current building legislation or introducing new legislation to achieve total building performance. Total building performance is still an evolving science without international benchmarks or standards. Initiatives for Total Building Performance should be industry-driven, with the aim to provide better buildings and better quality buildings.”
“In the last two years, local contractors have been awarded something like 15 out of 35 public sector projects valued about $100 million and, of the 20 projects, 11 were awarded to joint ventures between local and foreign contractors. So, I would say that, on the whole, local contractors can compete even for large projects. But having said that, I think there is still merit for local contractors to consolidate to build niche capabilities and to form consortiums or groups in order to look for overseas projects, and the Government will encourage and facilitate such consolidation. But at the end of the day, I think we all realise that it is left to the contractors to decide whether they want to consolidate or not. The Government really cannot intervene or even enforce this. One final point, to respond to Mdm Cynthia Phua's question about expanding of construction opportunities, first of all, she will recall that the Government has brought forward some public sector projects in order to help the industry, especially the local contractors. But at the end of the day, as I indicated, the size of the local market is small; in fact, it has shrunk considerably, especially under the present economic climate. So, the only way for the contractors to grow is to venture abroad, and there are opportunities overseas. The market in India and China is growing at an average rate of about 10% annually, and there is a tremendous window of opportunity for local contractors. BCA, together with IE Singapore, has intensified efforts to promote export of construction services in the last few years.”
“They are affected by worldwide supply and demand, and the reason international steel price hikes, for example, has caused some contractors to bear unexpected additional pain. However, on the flip side, if prices had dropped, the contractors would, of course, pocket the savings. So, for public sector projects, both parties, whether it is the contractor or the agency concerned, will have to accept material price fluctuations as a commercial risk. Public sector agencies are aware of the potential impact of material cost increase on the project, and that is why some of them include a price fluctuation clause in their contracts, especially when such projects span a long period of time, or when the usage of certain materials is high. So, if there is such a clause, then the contractors would be protected. Of course, this clause is made known at the point of tender, so that contractors can price accordingly. But where there is no such provision, the agency is not contractually bound to compensate contractors for any price increases, and contractors will have to bear this cost increase. However, I do know that some agencies are looking into ways to help to ease the cashflow of contractors. In the final analysis, it is up to the agencies as to how they wish to structure their contracts and how they intend to deal with the contractors, bearing in mind of course that they have to safeguard funds. Mdm Cynthia Phua expressed some concern about local contractors not being competitive with the big boys, ie, the big foreign firms. I just want to assure her that our local contractors are able to hold their own. I have some figures here which I would like to share with her.”
“At the same time, he will recall that we tightened the timeframe to submit financial accounts for A1, A2 and then, later on, for B1 firms, in order to provide more time checks on the financial status of the firms undertaking public sector projects. So, all these changes were made with a view to improving the health of the construction industry as well as to help some of the contractors satisfy the CRS requirements. But I would agree that we need to continuously review the CRS requirements regularly, and I assure him that we will do so in consultation with the industry, other Government agencies and also the GPC for National Development. We should also be mindful that we do not make changes too frequently, otherwise it is going to confuse the firms seeking registration, renewal or upgrading. Dr Teo also asked whether the CRS has improved the quality of the local contractors. If you look at the statistics last year, more than 95% of the public sector construction projects - I only refer to public sector construction projects because the private sector does not provide such data to us - were graded satisfactory and above, and in meeting the CRS requirements, you will see that many of our larger local contractors now have more professionals in key positions, and that the management practices are now fully compliant with many of the ISO standards. Mdm Cynthia Phua asked whether we can protect the contractors against cost escalations, particularly the rapid increase in cost of, say, steel as a result of high demand from China. I think some of these cost increases, eg, the increase in the cost of steel, are really factors which are beyond the Government's control. And construction material prices are dynamic.”
“They are much more complex, and they require a multitude of skills, robust financial strength and manpower expertise. Dr Amy Khor asked why do we require multi-skills for certain jobs. The complexity of such jobs require such multi-skills within the contractors involved. So, if you have a firm that is registered at a lower grade, you will face difficulties in trying to undertake larger scale projects, especially those that span a long time. Dr Teo wanted to know specifically how many G8 contractors were downgraded with the implementation of the new registry system. The BCA revamped the registration criteria in July 2002, ie, almost two years ago, and that was to better match the higher standards required in construction projects. For building works, the number of firms in the previous G8 grade was 87. In the new equivalent grade, which is A1 grade, this has come down to 38. So, basically, it has been reduced from 87 to 38, or more than half. For civil engineering works, the number was reduced from 52 to 23, again more than half. Dr Teo also suggested that the CRS grade renewal criteria be reviewed. Again, I would like to inform him that this was done. BCA relaxed the requirements, particularly for track record for CRS grade renewal in October last year. This was at the same time as I announced the package of help measures. The qualifying period for grading has been extended from three years to five years. And BCA also allowed on-going projects to be taken into account. So, as a result of this, firms will not be under great pressure to tender for projects at unrealistically low bids, or so-called suicide or tiou lou bids, as Dr Amy Khor calls them, in order to satisfy this required track record.”
“BCA will consider these suggestions in developing the proposed legislation. I must hasten to add that such legislation is not a panacea for the payment woes that are faced by contractors and subcontractors, but it will at least facilitate the cash flow and alleviate the problem of non-payment along the value chain, as highlighted by Dr Wang Kai Yuen and other Members. I expect to table this legislation in Parliament in the latter half of this year, and further details will be announced then. Mr Ang Mong Seng also touched on the issue of escrow accounts, ie, project accounts. This was actually studied by the group looking into the industry. Although it has some merits, unfortunately, there are many other problems associated with it. It is a complicated issue to manage and would require legislative backup. But I think, more importantly, even with such an account, there will still be payment disputes between contractors and subcontractors, and also between contractors and developers. So, we have decided that, for the moment, we will not be pursuing such an account. I turn now to Dr Teo Ho Pin's questions on the Contractors Registry System (CRS). He expressed concerns about the registration renewal criteria, and asked what are the effects of this scheme on the quality and professionalism of local contractors. The CRS, if I may go a little bit into the background, was set up as a centralised registry to prequalify contractors for public sector jobs. It grades and then prequalifies these firms, depending on their scale and skills, and the criteria include factors like financial strength, track record, manpower capabilities. This is necessary because projects are getting much more complicated.”
“At the same time, I also mentioned that BCA was looking into the possibility of introducing a security of payment legislation, or SOP legislation. Under this legislation, we would provide statutory rights to contractors to seek payment for works done. Sir, I wish to inform Members that BCA has completed the study of the SOP legislation that are existing in other countries - Australia, UK, New Zealand - and we will be introducing a SOP legislation that will be suitable for local conditions. The key elements in this legislation will be (1) the right to progress payment for works done; (2) the right to suspend work if not paid; and (3) a fast and low cost adjudication system to resolve progress payment disputes. 11.45 am It is a major piece of legislation. It is a complicated one and therefore BCA has to consult extensively with the industry, the key stakeholders in the industry. There is a general consensus on most of the features of the proposed legislation, including its scope, the adjudication process, as well as setting up a suitable body to be appointed to conduct such adjudication. However, there are also genuine concerns that need to be addressed, such concerns like the potential negative impact of the right to suspend work. The industry has suggested that work suspension should be allowed only after adjudication, and only if the adjudicated amount has not been paid. The industry has also asked that developers be allowed to make direct payment to the subcontractors in cases of non-payment by the main contractor, in other words, bypassing the main contractor in order to make sure that cash flows to the people who are doing work and to make sure that the project does not get delayed or aborted.”
“Sir, first of all, I would like to address the questions related to the contractors' procurement system, and then I will ask my SPS to address the other questions. Sir, we all know that the contractors have been having a hard time recently. Last few years have been particularly difficult ones mainly because the construction demand has shrunk by more than 50%. In 2003, last year, construction demand was $10 billion, the lowest in more than a decade. And if you compare that with, say, during the boom years, at its peak, construction demand was more than $20 billion. Yet, at the same time, the total number of contractors, the size of the construction industry, the manpower involved, the firms involved, have more or less remained the same. In other words, there are simply not enough jobs to go around and I think that is really the fundamental cause of many of the problems facing contractors, subcontractors and many of the ills which are confronting the industry today. Because competition for jobs has become more intense, many firms have faced severe financial difficulties. And I think the experience which Dr Wang recounted just now, I am sure has been faced by many other Members of Parliament as well. We do sympathise with their plight and to the extent that we can help, I think the Government will. Mr Ang Mong Seng, Dr Wang Kai Yuen and Mdm Cynthia Phua have asked what we can do about the situation. I think one of the common complaints is about subcontractors not being paid, or not being paid on time. If Members will recall, last year, I introduced a package of help measures for the construction industry in Parliament. This was some time in October last year.”
“Sir, obviously whenever we design buildings, and particularly under the current scenario, these designs will have to take into account security considerations and the security agencies will be involved in the design of such underpasses. But, at the same time, I think other precautions will also have to be taken in so far as making sure that these facilities are not what Dr Teo calls "soft" targets.”
“I do not think that the requirements are that onerous because of the benefits that are offered by better connectivity. So I would like to assure Dr Teo that we will continue to discuss with the developers and to make sure that these requirements are reasonable and, more importantly, are made known to them upfront. Sir, may I now ask my Senior Parliamentary Secretary to respond to the other queries?”
“I would also like to add that URA is now working closely with the Singapore Tourism Board to develop other plans and ideas to enhance Orchard Road and to make it even more exciting. Let me now address Dr Teo Ho Pin’s question about underpasses, particularly, he asked whether we can provide more flexibility to developers to build underpasses. Sir, underpass construction is very much a part of land sales requirements for the city centre sites, again, to provide for better pedestrian connectivity, particularly in those high-density sites around MRT stations or in high traffic areas. These underpasses, we all recognise, serve a very useful purpose, especially when the weather is not so convenient for walking. In many areas in the city area, we cannot build overpasses or overhead connectors because of physical site constraints or sometimes because of aesthetics. Hence, the specification for underpasses. Since 1995, there have been some 12 sites which have included underpass requirements under the sale of sites conditions. So, these underpasses, for example, Raffles Link which links the Esplanade theatres, the Marina Centre shopping areas with the City Hall MRT station are very well utilised. In other locations, developers can choose whether they want to build underpasses or overhead bridges. One such example is the Tekka corner site where they can choose whether to build one or the other. I must say that developers generally see the benefits of these direct underground pedestrian connections, especially to the nearby MRT stations. The requirement for underpasses is stated upfront so that developers can factor in the construction cost at an early stage.”
“Together with other exciting developments that were announced recently, like the proposed leisure resort complex in the Southern Islands, it will reinforce Singapore’s position and competitiveness as a regional and international business and financial hub as well as a tourist destination. Sir, I would like to assure Members that other key areas in the city will not be neglected. Orchard Road is one such area. Orchard Road is an icon. It is a shopping street, well known overseas. It is synonymous with great shopping, good food, good hotels. But we need to safeguard Orchard Road’s position as one of Asia’s premier destinations because of increasing competition from other shopping destinations in the region. So, we have to find new ways to remake Orchard Road. I am glad that the private sector has responded to the challenge. For example, there are some new developments, such as Wisma Atria and Paragon, which have recently repositioned themselves and revamped their developments in response to the market. The Government is also working to improve the experience for shoppers along Orchard Road, and one of the areas for improvement, which many have been fed back, is pedestrian connectivity. What URA is planning to do is to build up a comprehensive underground pedestrian network in Orchard Road and in the CBD. To encourage developers to build these underground links, I am pleased to announce that the Government will adopt a co-funding approach and provide a cash grant to developers who wish to implement selected key linkages between developments along Orchard Road as well as in the central business district. A sum of $59 million has already been approved for this purpose, and URA will be announcing the details of this scheme very shortly.”
“Sir, last Saturday, before Parliament adjourned, I announced, in response to Dr Teo Ho Pin, the plans for the downtown at Marina Bay including the development of the waterfront promenade, a new bridge and also other amenities, so that we could open up the area and make it much more vibrant, accessible and attractive. I also announced that the Government would appoint URA as the development agent to proactively develop the area. I would now like to assure Dr Teo that the release of any land at the downtown at Marina Bay, such as the VSC land, will factor in the supply of space in the existing city. The existing CBD which encompasses Shenton Way, Raffles Place and even the Marina Centre area, will not be neglected. The existing CBD will combine with the new extension at Marina Bay to form a core business district for Singapore. Owners of older commercial buildings in the existing central business district are refurbishing and modernising their premises in order to stay competitive and to attract tenants. There were quite a few examples recently - the Singapore Land Tower at Raffles Place, IBM Tower at Anson Road and the former Chartered Bank building at Battery Road. There are also opportunities to redevelop some buildings for complementary uses, like housing, and this will further enliven the city. Sir, all the above will help to rejuvenate the existing CBD and enable it to remain competitive and relevant. In the longer-term, the successful development of the downtown at Marina Bay will bring in jobs, enhance real estate values and create a vibrant and exciting waterfront area for Singaporeans and for visitors.”
“Mdm Deputy Speaker, I beg to report that the Committee of Supply has made further progress on the Estimates of Expenditure for the financial year 2004/2005, and ask leave to sit again on Monday, 15th March 2004.”
“So to further lend impetus to the effort, the Government has appointed URA as the development agency to champion and focus actions for development of the area. What this means is that URA will spearhead and coordinate development efforts and also carry out active promotion, marketing and place management for the area. Of course, URA will work closely with other agencies as well as with the private sector to make sure that the plans are market-oriented and are attractive to investors. I will chair a Ministerial Steering Committee comprising senior representatives from MOF, MTI, MinLaw and relevant agencies to provide strategic directions, facilitate decision making and steer development efforts for the Downtown at Marina Bay. I would like to assure Dr Teo that the release of any land at the Downtown at Marina Bay, such as for the BFC, will factor in the supply of space in the existing CBD, which is the Raffles Place, Shenton Way area, and will not be neglected.”
“In the midst of such competition, Singapore needs to plan for, and invest in, the necessary infrastructure and software to create an equally, if not more attractive environment. So we are fortunate to have available to us such a large tract of unencumbered land, right in the heart of the city, in a prime waterfront locale, and this gives us a tremendous opportunity to create a unique business, financial and residential hub, as a seamless extension to the existing CBD. We will adopt a pro-active approach to realise the vision for Downtown at Marina Bay. As a start we will be putting in place key infrastructure and facilities to open up the area, to make it more accessible, more attractive. The Government's initial investment in key infrastructure in the Bay area will amount to $300 million and this will go towards developing a waterfront promenade around the Bay, a new pedestrian-cum-vehicular bridge to link to Marina Centre, as well as an extension of the common services tunnel, and road and sewer networks to bring utilities to serve the new developments. The URA will be calling for consultancy studies for the design of the promenade and pedestrian bridge because this is in a prime location and we want to make sure that such works are well-designed and relate well to the surrounding area. To activate the Downtown at Marina Bay early and to ensure vibrancy, we will also introduce low-density developments around the Bay for recreation and lifestyle related uses. And this can be for shorter leases, for up to 30 years. We will also be releasing land for residential users in the next few years to bring life to the area. The development of the Downtown will require the effort of all agencies.”
“Madam, let me address Dr Teo Ho Pin's question concerning the developments in the Downtown at Marina Bay. He asked whether the developments are on track and I am happy to inform him that they are on track. In fact, the Downtown at Marina Bay will be our key focus for development of our City in the next 15 to 20 years. The Government's intention is to develop the area around the Marina Bay to provide prime office space for global businesses as well as financial institutions, complemented by a full range of residential, shopping, dinning, cultural and entertainment facilities. So the Downtown at Marina Bay will not be just a place for work, it will also provide a total live, work and play environment. That is why a number of land parcels in the Downtown area will be zoned for residential and also "white uses", in other words there will be a mix of uses which will help to create vibrancy and buzz within the city. In fact, developments in the area are already underway. NTUC has the NTUC Centre just completed. Two sales sites launched in 2001 and 2002 are now in the various stages of construction and, of course, we will be launching the sale of our Business and Financial Centre (BFC) in May this year, through the Reserved List System. Madam, the Downtown at Marina Bay can be one of Singapore's key competitive advantages for the medium term. Cities all over the world are investing heavily in state-of-the-art facilities, infrastructure, developments to attract investments, trade and tourists. So, cities like Dubai, Shanghai, London and Tokyo, they are all channelling a lot of effort and money to new areas to keep abreast of changing requirements of business and financial institutions. Developers and investors can now choose from a wide array of attractive locations globally.”
“This attitude actually puts in perspective the success of this home ownership policy that we are trying to implement. Encouraging Singaporeans to marry young is one thing, but, as the hon. Member Mr Leong Horn Kee said in the Budget debate, we have to be aware of the butterfly effects. I think this is one of them. The other group of singles that has come to my attention is those who live in big families that have grown bigger and as a result, have been pushed out by their own families to find accommodation. Sometimes, these also include those who are estranged from their families. So in such cases, it looks as if they are caught in a bind. They are too young to apply for a flat under the Singles Scheme. But, at the same time, they actually can afford it because they have good jobs. They think that they can afford to buy a flat. So, in cases like this, I wonder whether HDB is willing to be flexible and allow such cases to benefit from the purchase of singles flats. Housing for an Ageing Population”
“But I want to assure Members that HDB flats are not inferior in quality to private sector flats. They are cheaper in price not because they are lesser in quality but because they are subsidised by the Government. Singles Home Ownership Policy Assoc. Prof. Chin Tet Yung: Madam, may I first apologise to Minister Mah for saying that he need not answer my question. It is not intended to be like that. What I meant to say was that I hope that the answers will lead to positive actions and he has actually mentioned that he would build more 3-room flats and at the same time act flexibly, in terms of application of HDB policy, and I think these are very satisfactory answers. I would like to ask for more flexibility, again, this time in relation to the rules on single occupation and purchase. Currently, HDB only allows those who are single and aged 35 and above to purchase a 3-room HDB flat. But, recently, there has been an increasingly disturbing trend of Singaporeans becoming single after a divorce, even before the age of 35. It seems that many of them are marrying young and divorcing young. A few of them have come to MPS, and so on, and I asked them why they married young. They said that this was to qualify for a flat. In other words, many youngsters seem to want to get married because they want to own a flat. Upon divorce, these youngsters find that they have to give up the flat because they are either not eligible to do so, or have no means to do so. One young lady, in fact, came to me and insisted that if she was not allowed to retain her flat, she was willing to end her life. And the reason for wanting to end her life is not because she lost her spouse but she is likely to lose her flat.”
“The Member is correct to say that we are actually building much less flats. But when it comes to the supervision, I think it is the same whether we are building more or less flats because, ultimately, each flat or each project is built according to certain standards, certain specifications at certain prices, and by certain contractors using the same kind of construction workers. So I think there has got to be a much more concerted effort industry wide, not just for HDB flats, and certainly not because we are building less flats. But industry wide, we have got to make sure that the construction quality goes up and this is where I will mention, if you will permit me, some of the things that BCA is doing. Just last year, there was the launching of the Quality Mark for Good Workmanship Scheme whereby they will supervise more closely the workmanship standards of individual flats, in other words, putting pressure on the contractors to ensure higher quality. How the contractor does it - by putting more manpower, by increasing supervisors - it is up to them. But this Quality Mark Certificate is something that the private sector developers have received well because it obviously gives them another selling point. So 6,000 units in 30 projects have actually applied to be assessed, be voluntarily assessed under the Quality Mark, and there will be about 3,000 obtaining certain certification. So, really, it is a construction industry-wide issue - the question of construction quality. It goes all the way down the value chain, from designing flats so that it can be easily built, and all the way down to building it. And this is a subject which, I think, will be discussed in another cut on the issue of construction quality.”
“And this is the point that I would like to make.”
“If you take the CONQUAS' scores as an objective measure, the answer is no. So, what else could be the reason? I asked the private sector developers this question, because I too am concerned about the increase in the complaints. They told me, yes, they have also received an increase in the number of complaints from private buyers. The buyers are getting much more fussy. They check every little nook and cranny and they make sure that everything is perfect. Marble is not the right colour and marble of the wrong grain are also not accepted. And they attribute this to the drop in private property prices. What they told me was that when prices are going up, buyers did not care what the flats look like. They just bought so that in a few years' time, they sell, make money and go off happy. But now they actually look at the flats in minute detail. And when they do so, they find all sorts of things going wrong - some serious, some not so serious. But the fact is that complaints of quality in private sector flats have also gone up. Part of this, I suspect, is also due to the issue of the type of construction workers that we have been getting. So this is where BCA has got to do something to raise the quality of construction. 5.30 pm So private condominiums do have problems as well. The difference, of course, is that owners of private condominiums do not write to newspapers to complain and Members of Parliament do not raise their issues on their behalf in this House. But for HDB flats, they will either threaten to write to the newspapers or they will bring it up to the MPs, and the MPs will obviously bring this matter up in the House. That is why you are here for. But it does not follow therefore that HDB flats are actually poorer in quality.”
“By and large, most Singaporeans would acknowledge that the flats that have been built and that they have lived in all these years have been of good quality. This is not a mean feat. Public housing all over the world has been a big challenge for many cities, whether it is developed or developing. In many cities, public housing is seen to be lower quality housing, low-class housing, not built to such high standards, but not in Singapore. The HDB has, over the years, put in place a comprehensive quality management system to check and to maintain quality, whether it is the design or the construction of the flats. What HDB is doing now is to let BCA separately assess the quality of its flats through what they call the CONQUAS system. This is an acronym which stands for Construction, Quality and Assessment System. This CONQUAS system is a system that has been used by private sector developers to assess the quality of their flats. It is a very detailed assessment of internal quality of the flats - finishes, doors, windows and so on. And there is a score at the end of the day. The score for public housing has gone up from 71.9 in 1997 to 79.3 in 2003, and this is on par with the score for private housing which is 79.4. So, on an objective overall basis, one can say that, over the years, the quality of housing has gone up. But notwithstanding this, I think we all must expect that defects in individual units do occur - poor workmanship, improper installation, etc - and that is the reason why we have a defects liability period. And all defects within this defects liability period are repaired and rectified free of charge. Has there been an increase in the complaints of quality among HDB flats? The answer is yes. There has been an increase. Is it due to a decrease in quality?”
“But as I informed the House last month, I have asked BCA to consider the alternative of allowing home owners, if they so wish, to check the windows themselves, provided they accept this responsibility of ensuring that their windows are in good condition. In other words, if you wish to save $40 and you want to do it yourself, or if you have friends, neighbours or you yourself can do it, by all means. But please make sure that if something is not quite right, you get it fixed. On the question of whether we should ban casement windows above the 10th floor, I am not an expert on windows, but my experts tell me that casement windows are good for ventilation compared to other types of windows and, that is the reason why they are so widely used, not just in HDB flats but also in private apartments. Indeed, the issue is not really casement windows versus sliding windows. The issue really is whether you take care of your windows, whether you have installed them properly, and whether you have maintained them properly. Even sliding windows have been known to fall if they are not properly maintained. Finally, I come to the questions raised by Mr Tan Soo Khoon about complaints of quality in HDB flats. Why are HDB flats of such poor quality? First of all, I must agree that it is totally reasonable for somebody who buys a HDB flat or any flat for that matter to expect to have in his possession a flat which is of reasonable quality. I think that is a given. I do not think we should make any excuses for that. Having said that, there will always be flats that are not as well built as others. HDB has been building flats for the last 40 years.”