Teh Cheang Wan
Singapore
“The Board does not propose to reinstitute the procedure for the resale of flats at the respective Area Offices in Ang Mo Kio New Town. As a pilot project, the Board has centralised the resale of Ang Mo Kio flats at Sales Section, Maxwell Road.”
“At the contract price or whatever it is, and this is due to the mistake made by the HDB, the HDB has been quite generous. If the mistake made by the HDB staff has been to sell the flat at lower than the posted price, then the owner has the benefit of this mistake.”
“The Member for Potong Pasir is asking a question which I have to check for an answer. I do not carry with me the millions of accounts of HDB flat-owners with me. So I cannot give him an immediate answer. But I can assure the Member for Potong Pasir that those people will be refunded.”
“Mr Speaker, Sir, since the announcement by HDB on 4th July 1986, 49 HUDC lessees appealed to the Board to buy their flats. All were unsuccessful. As at 20th September 1986, 27 HUDC flat owners had sold their flats in the open market. Twelve of them sold their flats above their original purchase prices.”
“Mr Speaker, Sir, since the implementation of the policy, HDB has resold 13 HUDC flats from among those flats HDB bought back from the HUDC owners. In addition, HDB has sold 44 new HUDC flats. The slow sale of HUDC flats is due mainly to the depressed property market.”
“Mr Speaker, Sir, I have no figures readily available as to how many of these 49 HUDC flat-owners who requested the Board to buy back the flats have committed themselves to buying other property.”
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“Mr Speaker, Sir, I do not think it is necessary for URA to sell Marina Land to finance the MRT. I understand from the Treasury that the financial position of Singapore is quite good. The Treasury is in a position to finance the MRT without the sale of Marina Land.”
“Mr Speaker, Sir, the sale of URA sites is determined by a few factors. One is to provide land for development when there is a shortage of land in the market. The other factor is this. In certain areas, for example, in Cecil Street there are a few odd pockets of land not developed, in order to complete the total comprehensive development, these few odd pockets of land, owned by URA were offered for sale. These are the factors that govern the sale policy.”
“Mr Speaker, Sir, I think the 11th sale mainly involved offices and shops, so the tender price was higher. For the 10th sale it was Other Properties, not so much commercial properties at all. Therefore, the price was lower.”
“Mr Speaker, Sir, Singapore is a free market economy, and in a free market economy it is impossible to control and match accurately the supply and demand of the property, It is impossible to balance supply with demand to achieve a "no-surplus no-shortage situation" in order to achieve a more orderly property market devoid of any violent fluctuations. If Singapore were to adopt a central planning economy, as in communist countries, then, of course, the Government can determine everything, and perhaps there will not be these violent fluctuations in supply and demand and there will not be these violent fluctuations in the prices of property.”
“Mr Speaker, Sir, these are based on two factors, ie, the time and the type of building. For example, in the year 1978 the land cost represented only 11% because at that time the land price was low and so the tender price for URA sales was low and, therefore, the land price to total investment was low. In another example, in 1981, on the 9th sale the land price constituted 46% of total development because in 1981 there was the property boom. So the tenderers were prepared to bid very high prices, and that is why you have 46%. The other factor is the type of development. For example, in the same year, 1981, the 10th sale, the land price constituted only 32%, because it included a lot of industrial and residential development, not just commercial development. Therefore, the land price was low. These are the factors that influence the total cost.”
“Mr Speaker, Sir, the Urban Redevelopment Authority conducted its 5th to 11th sales between 1976 and 1982. The ratio of land price to total investment for each sale is as follows: Ratio of land Year of Price Award of to Total Tender Sale Investment 1976 5th Sale 30% 1978 6th Sale 11% 1979 7th Sale 20% 1980 8th Sale 32% 1981 9th Sale 46% 1981 10th Sale 32% 1982 11th Sale 60% Except for Havelock Plaza and Rochore Complex, which are URA projects, the Ministry does not have records of the land costs of the buildings listed by the Member for Rochore. The land cost of Havelock Plaza is $32,757,000 and that of Rochore Complex is $22,864,000. Raffles City is a private development. Under the Statistics Act 1973, the Ministry cannot disclose details concerning individual projects without the written consent of the developer. The Member for Rochore may wish to check with the developer direct. The Ministry of Labour has not yet submitted the plans of its new building for planning approval. The construction cost will be known only after plans have been finalized and tenders called. The construction costs of the other buildings, as given by their owners, are: CPB Building : $ 52.7 million Treasury Building : $295.4 million MAS Building : $126.2 million Ministry of the Environment Building : $ 93.1 million PSA Building : $185.0 million NPB Building : $ 45.0 million Havelock Plaza : $ 35.9 million Rochore Complex : $ 34.8 million Except for CPF building and MAS building, which have been completed, the construction costs given by the owners are estimates only and are subject to change.”
“Yes, the HDB tender document is an open document. Anybody can purchase it. Even the hon. Member can purchase it. As soon as a tender has been received, the tender result is published in the notice board of the HDB office, almost immediately after the tender has been submitted. The hon. Member can send somebody to look at the tenders submitted today which, I think, is open at about 10.30 or 11.00 am. The result will be published at 12 o'clock on the HDB notice board. So the hon. Member can get that information. URBAN REDEVELOPMENT AUTHORITY SALES (Particulars) 6. Dr Toh Chin Chye asked the Minister for National Development (a) what is the ratio of land price to total investment for each of the Urban Redevelopment Authority sales for the years 1976 to 1982; and (b) what are the costs of land and costs of construction of the following buildings: (i) CPF Building; (ii) Treasury Building; (iii) MAS Building; (iv) Ministry of Environment Building; (v) Ministry of Labour Building; (vi) PSA Building; (vii) NPB Building; (viii) Havelock Plaza; (ix) Rochore Complex; and (x) Raffles City.”
“Sir, the construction cost and the land cost are the two factors which constitute the cost of the flats. In the new towns, the construction cost constitutes the greater proportion of the total cost of HDB flats because land in the new town zones is cheaper. In the central area, for example, in the city, land prices are much higher and therefore the proportion of construction cost is lower.”
“Sir, in fact, hon. Members are aware of how the prices of the HDB flats are fixed. It is based on these three factors. Construction cost is one of the factors. Land cost is another factor. But most important of all is the affordability of the Singaporeans. There is no point for the Government to build flats and fix high selling prices when Singaporeans cannot afford them. Also, Government has, in the Presidential Address, stated very clearly that for the next five years-, the HDB home ownership of Singaporeans will be increased to 80% from the present 60% of total population, and to 100% by the year 1999. So obviously the HDB's selling prices of flats have to be pegged in such a way that the whole population can become flat owners.”
“Sir, I will give the answer when we come to Question 7.”
“Mr Speaker, Sir, the HDB has taken this into consideration. That is why I said earlier that the HDB has no proposal to review the rentals. As for those who feel that they are paying too high a rental which they have tendered, they have the option of terminating the tenancy and either tender for the same shop or tender for another shop.”
“Sir, I think the lifetime of the Minister is also unpredictable.”
“Mr Speaker, Sir, I am in no position to commit future governments of having one review in 20-25 years. But I think the period will be shorter than 20-25 years.”
“It is likely that the HDB will have a periodic review of the policy on shop rentals but at a very much longer interval, not in the interval of two or three years. It will be a much longer interval.”
“HDB selling prices are determined by factors like land cost, construction cost and, most importantly- affordability of applicants. As a result, HDB selling prices are always well below prices of comparable private flats. The HDB 3-room simplified flats sell at $412 per sq metre, ie, less than $40 per sq foot, in New Towns, and $509 per sq metre in an Inner Suburban Zone. This is a fraction of comparable flats in the private sector. It is Government's policy to keep HDB selling prices within the reach of practically all Singaporeans in order to achieve the objective of 100% home ownership by 1999.”
“Mr Speaker, Sir, the HDB and the URA systems of renting out business premises are different from each other. URA shop premises are let out on fixed leases of 2-3 years. The rentals of URA premises are determined at the commencement of the leases with reference to market rates, On expiry of the leases, rentals are reviewed and adjusted in accordance with prevailing market conditions. In the case of the HDB, premises are let out on monthly tenancies and rentals are determined by the tender system. There are no specific time periods at the end of which rentals are revised. The HDB has since its inception only revised shop rentals once. This was in 1983 when the rentals of premises let out as far back as the Fifties were brought up to the 1980 level. This was because of the vast disparities in rents set more than 20 years ago and which had not been revised. Even with the revision, rentals at the 1980 level are still very much below the current rentals. The HDB has no further plans at the moment to review rentals for its business or industrial premises. It would not be good for the HDB to start reducing its rentals because of poor business. If businessmen know that the HDB is prepared to reduce rentals because of poor business, they will not mind submitting high bids in order to get a shop unit and subsequently appealing for a reduction in rental because of poor business. This will make tender bids extremely high and is not beneficial to the economy. The HDB does allow businessmen, who are unable to continue paying their rentals, the option of terminating their tenancies and re-tendering for the same or new remises at a lower rental. (b) The selling prices of HDB flats have never been pegged to conditions in the private property market.”
“Mr Yeo Choo Kok asked the Minister for National Development (a) whether the Urban Redevelopment Authority and Housing and Development Board will consider freezing or even reducing rentals for business or industrial premises and shophouses for this year in view of the present hard times and whether his Ministry has received any such request; and (b) whether the HDB will consider downward revision of the prices of its flats in the light of prices in the present property market.”
“Sir, the HDB rule is that one flat will be allocated to each family. In other words, the family with a large number of children will not be given a special privilege over the family with a smaller number of children. Mr Yeo Choo Kok (Delta)( In Mandarin): Sir, will the Minister tell the House whether the HDB at present will allow single persons to rent HDB flats? Mr Teh Cheang Wan( In Mandarin): Sir, the present HDB regulations allow a single person together with another person to rent or to buy HDB flats. However, in the case of a male, he must be at least 50 years old and, in the case of a female, 40 years old. The reason for such regulations is that in our society, those who are above 40 do not have much chance of getting married. Therefore, it is difficult for them to set up their own families and the Government allows them to rent or to buy a flat together with another person. As for the male citizen, if he is above 40, he still has the opportunity of getting married. However, if he is above 50 years old, the chances of his getting married are very slim. Therefore, the Government allows him, together with another person, to rent or to buy an HDB flat. Mr Yeo Choo Kok( In Mandarin): Sir, my point is that if both are males who are above 30 years old, will the Minister allow them to rent or to buy an HDB flat? We cannot force them to get married. If they are unable to get suitable spouses and if they are paying tax, will the Minister consider allowing them to rent or to buy an HDB flat? Mr Teh Cheang Wan( In Mandarin): Mr Speaker, Sir, at present, the HDB will not consider changing these regulations. REDUCTION OF RENTALS FOR COMMERCIAL AND INDUSTRIAL PREMISES 5.”
“Mr Speaker, Sir, the current income ceilings of $3,500 per month for HDB flats and $6,000 per month for HUDC flats already bring public housing within the reach of more than 90% of the population. However, the HDB continually reviews the ceilings. An upward revision will be made when the need arises. In view of land constraints, public housing is limited and must therefore be confined to the accommodation of family units. The HDB is unable to waive the present age requirement to cater for single citizens who wish to stay on their own, away from their parents or family. For similar reasons, the HDB is unable to allow single persons to purchase 1- or 2-room flats. These flats are currently rented out to the lower income section of the population. When not required anymore, they will be converted to bigger sale flats or demolished for redevelopment, to meet the demand from families.”
“Mr Yeo Choo Kok asked the Minister for National Development (a) in view of its recent liberalisation of the property ownership rules, whether the Housing and Development Board will raise or even waive the ceiling of income in order to make it easier for people to purchase types of flats according to their needs; (b) whether the HDB will waive the present age requirement so that two single adults can apply to rent HDB flats; and (c) whether the HDB will allow single persons alone to purchase one or two-room flats in the foreseeable future.”
“Mr Speaker, Sir, 235,599 sq metres of offices and 5,284 residential housing units were completed between October 1983 and September 1984. Of the completed office areas and housing units, 96,972 sq metres or 41.2% of the offices and 2,429 units or 46.0% of the housing units were vacant at the end of September 1984. My Ministry does not monitor the occupancy rates of hotel rooms. That is the responsibility of the Singapore Tourist Promotion Board. The Board has estimated that the occupancy rate of 2,385 additional new hotel rooms in 1984 averaged 65.8% versus a national average of 75.5% for 16,440 rooms. Neither the Ministry nor the Housing and Development Board has plans to purchase any of the vacant office space, hotel rooms or housing units. Individual government ministries decide how and where their activities are to be carried out. If there is a need for them to purchase some of the vacant office space or hotel rooms, they can take up the matter directly with the Ministry of Finance. Private residential properties cater to the needs of people who do not qualify for public housing units built by the Housing and Development Board. It is not within the Board's objective to buy over such units for resale to interested buyers. It is also not necessary to do so. Interested buyers can negotiate with private developers directly. HDB HOME OWNERSHIP SCHEME (Measures to Promote) 4.”
“The Member for Jalan Kayu has asked if the Ministry would consider introducing amending legislation to include consent for those below 18 years of age if the statistics point to greater permissiveness among teenagers and higher number of repeated teenage abortions. Imposing the condition that teenagers seeking abortions should be required to get parental consent will drive teenagers to back-street abortionists or discourage them from revealing their pregnancy until an advanced stage. This will be a retrogressive step which will lead to greater risks to the health of these teenagers. Complications of illegal abortion account for up to 70% of maternal deaths in hospitals of developing countries and an unknown number of additional deaths outside hospitals. A pregnant teenager who seeks an abortion is one who has an immediate problem. To refuse her the possibility of having an abortion under proper medical and psychological care is tantamount to forcing her to seek a clandestine abortion with consequent serious risk to her health. A more pragmatic approach would be to carry out the abortion first, when the teenager is in a desperate position of having to cope with the consequences of an unanticipated, unwanted pregnancy, followed by counselling her in the presence of her parents. Parents would then be obliged to exercise greater moral responsibility over their daughters.”
“After the enactment of this Act, the number increased from 704 in 1975 to 1,109 in 1979 and 1,787 in 1984. Repeat abortions among teenagers numbered five in 1971 and increased to 49 in 1974. After the enactment of the Abortion Act in 1974, the number increased from 72 in 1975 to 208 in 1979 and 456 in 1984. This increase has been partly due to the fact that, with the increasing number of years in which the Act has been in operation, the number of teenagers who would have undergone abortions has grown, thereby increasing the likelihood of repeat abortions among this group. The question is whether this increase in the number of teenage and repeat abortions is entirely due to liberalization of abortion laws or due to other external factors, namely, changing social mores brought about by wide exposure to foreign life-styles. These external factors have caused radical changes in our young people's moral values. The whole issue of abortion amongst unmarried teenagers is related to changing moral values of life. The Government can only play a limited role in instilling the right moral values into our young citizens. The moulding of children's character during the formative years of their lives lies chiefly in the hands of their parents and teachers. It is during these impressionable years that the correct moral values instilled will decide their future behaviour. Parents should take on this important responsibility which should be further fortified in schools by incorporating moral education into the school curriculum. The problem of teenage abortions is a world-wide one and there are no easy solutions.”
“Mr Speaker, Sir, traffic condition for the stretch of Upper Serangoon Road in the vicinity of Hougang New Town is still satisfactory. Recent traffic counts by the Public Works Department show that the peak hour traffic volume is between 1,000 and 1,100 vehicles per hour, which is within the capacity of the existing road. There is therefore no immediate need to widen the road. However, in view of the growing population of Hougang New Town, the Public Works Department is monitoring the traffic conditions along this road. The PWD is currently studying the design for the possible widening of the road within the five-year Road Development Programme. TEENAGE ABORTIONS (Particulars) 5. Mr Heng Chiang Meng asked the Minister for Finance, Minister for Education and Minister for Health since the Abortion Act of 1974 was enacted, making it no longer necessary for those below 18 years of age to obtain consent from parents/guardians, (a) has the removal of such consent resulted in more teenage abortions compared to the preceding 5-year period when such consent was necessary; (b) were there more repeated teenage abortions compared to the preceding 5-year period; and (c) whether the Minister will consider introducing amending legislation to include consent for those below 18 years of age if the statistics point to greater permissiveness among teenagers and higher number of repeated teenage abortions. The Minister of State for Health and Foreign Affairs (Mr Yeo Cheow Tong) (for the Minister for Finance, Minister for Education and Minister for Health): Mr Speaker, Sir, I am answering on behalf of my Minister. During the period preceding the enactment of the Abortion Act of 1974, abortions among unmarried teenagers increased from 24 in 1970 to 284 in 1974.”
“Mr Speaker, Sir, the HDB plans to build two pedestrian overhead bridges in the vicinity of Hougang Avenue 5 and Upper Serangoon Road. Tenders for the first bridge will be called by the third quarter of 1985, and that for the second bridge, in early 1986. Pending the construction of the bridges, three light-controlled pedestrian crossings have been installed. HOUGANG NEW TOWN (Widening of Upper Serangoon Road) 4. Mr Ng Kah Ting asked the Minister for National Development when the stretch of Upper Serangoon Road in the vicinity of Hougang New Town (North) will be widened to cater for the growing volume of traffic.”
“Mr Speaker, Sir, land is one of the most precious commodities in Singapore. HDB, together with various Government authorities, has been instructed to make the best use of land, and so HDB will study the utilization of the available land around Punggol for development. HOUGANG AVENUE 5/ UPPER SERANGOON ROAD (Pedestrian overhead bridges) 3. Mr Ng Kah Ting asked the Minister for National Development whether pedestrian overhead bridges will be constructed in the vicinity of Hougang Avenue 5 and Upper Serangoon Road in view of the fast growing population of Hougang New Town.”
“Mr Speaker, Sir, the number of new applicants for public housing under the Home Ownership Scheme registered in 1984 was 48,733. The number still on the waiting list to buy flats as at 31st December 1984 was 60,305. Applicants on the waiting list who are willing to accept flats in any area can, on the average, expect to be allocated their flats within one year. However, the waiting time for those who are choosy and want flats in specific areas will be much longer, depending on the locality. The HDB will continue to develop existing new towns, such as Tampines, Bukit Batok, Jurong West, Bishan and Yishun, and commence to develop new areas at Pasir Ris, Caicuogang North, Zhenghua and Bukit Timah. Mr Ng Kah Ting (Punggol): Mr Speaker, Sir, in response to the First Deputy Prime Minister's point yesterday, would the Hon. Minister consider extending the building of Hougang New Town, particularly the northern part, to Punggol?”
“Mr Speaker, Sir, I do not think that is the case. Anybody who submits a tender for HDB commercial premises is a serious tenderer, and he would have made his calculations: what is the potential of the business, how much profit he can make, before he submits his tender. This is not a guessing game. It does not necessarily follow that where one tenderer bids at a certain sum for a rental shop, the other tenderers will bid higher than him. Because the tenderer first makes his own calculations. If he finds that his business does not allow him to make a profit if he tenders too high, he will not tender at that rate. HDB HOME-OWNERSHIP SCHEME (Number on waiting list) 2. Mr Ng Kah Ting asked the Minister for National Development (a) if he will state (i) the number of applicants for public housing under the Home Ownership Scheme; (ii) the number still on the waiting list up to the latest convenient date; and (iii) how long these applicants have to wait before they are offered selection of their flats; and (b) whether there are any plans to develop new housing estates.”
“I am really a bit puzzled. Are you of the view that non-disclosure has led to higher tenders? Is that what you mean? Mr Heng Chiang Meng: Yes, that is what I am saying - that the disclosure of only the winning bid will lead the next tenderer to go for a still higher bid, regardless of whether or not there is a market for such HDB shop space.”
“Mr Speaker, Sir, the Housing and Development Board normally accepts the highest tender for its commercial premises, placing the second and third highest tenders as reserves should the highest tenderer not take up the premises. The HDB is of the view that disclosure of all tenders may lead to manipulation of the tender system. Tenderers, particularly family members or business partners, may be encouraged to submit multiple tenders in collusion with one another. If all bids are disclosed, they will know whether they have been placed as a reserve. Should they also submit the highest bid, they may reject the offer made to the highest tenderer and accept the premises at the lower rental offered by the reserve. The only penalty suffered by the rejecting tenderer is a forfeiture of the tender deposit. This is insignificant compared to the higher rents which may have to be paid over the years. Full disclosure of all bids may also encourage more non-bona fide tenders. If the gap between the winning tender and the reserve tender is wide, the successful tenderer may reject the unit and repeat the practice for another shop. An analysis of tenders received for HDB's commercial properties between 1981 and 1983 indicates that rentals offered increased by approximately 30% to 40% in town centres, and by about 30% in neighbourhood centres. Rentals in the Central Area increased by approximately 20%. In 1984, rentals remained stable in town centres and neighbourhood centres but declined by approximately 10% to 15% in the Central Area.”
“A wider availability and knowledge about the use of fire extinguishers will certainly complement our civil defence capabilities. GOVERNMENT-OWNED COMPANIES (Situation Report) 6. Maj Fong Sip Chee asked the Minister for Finance, Minister for Education and Minister for Health (1) whether he will make public a comprehensive list of all wholly government-owned companies and their subsidiaries, and all companies in which the government has either majority or minority interests; (2) the amount of capital involved in each of these companies; (3) if he is satisfied that these companies are engaged in businesses or operations which the private sector has neither the financial means nor the technical capability for their operations; (4) how many of these companies have been wound up due to poor business or poor management and the amount of public funds lost; and (5) in his view, how many of these remaining companies have out-served their purposes, functions and usefulness and which should accordingly be wound-up.”
“The HDB will be expending an estimate $11.7 million if fire-resistant walls were installed in all HDB shophouses where the staircases to the living quarters are not separated from the general shop area. There are 6,466 shophouses with unprotected staircases. Work on 398 units has so far been completed. In view of representations by some MPs and shopkeepers that not all shops needed protected staircases, the HDB will give tenants of the remaining shop units the option of not installing the fire-resistant boards. The programme is expected to be completed by the end of 1985. The HDB's building construction standards are continuously reviewed and, if necessary improved. The decision to compartmentalise the living and shop areas of existing shophouses was prompted mainly by the poor housekeeping practised by many tenants, who stack up goods and other flammable materials indiscriminately in their shophouses. The HDB's upgrading exercise is an improvement of fire safety standards in shophouses, and not a reflection of defective planning and design. While the HDB will encourage tenants to install fire extinguishers and other fire protection devices, it will not require them to do so as a condition in the tenancy agreement nor provide them with fire-fighting devices. Unless shop tenants properly maintain and regularly service their equipment, fire extinguishers installed and readily available will not prove to be useful during an emergency. HDB shophouses already enjoy a high standard of fire safety, which will be further enhanced by the current programme to protect staircases. Fire extinguishers which are regularly serviced and properly maintained, will give shopkeepers an additional means to deal with small fires detected at an early stage.”
“Maj Fong Sip Chee asked the Minister for National Development (1) what is the amount of money to be expended by the Housing and Development Board (HDB) in the installation of fire-resistant boards in HDB shop premises; (2) how many such premises are involved and how many installations have been completed so far; (3) if he will agree that the non-provision of such fire-resistant installation was defective planning and design in the first instance; (4) if he will instead consider, as part of the tenancy agreement, requiring shop tenants to install fire extinguishers of appropriate sizes and in sufficient numbers; (5) if he will agree that fire extinguishers so installed and made readily available to shop owners and residents alike will be more useful and effective during an emergency; and (6) does he not consider that a wider availability of fire extinguishers and knowledge of their application will be complementary to the government's efforts in the building up of Singapore's civil defence capabilities.”
“Foreign contractors, when they start their activities in Singapore, do take the trouble to acquaint themselves with our laws, statutory requirements and practices. They do this with the help of local partners, by employing or engaging the services of the right professional people, or through experience gained in initial small projects. Many foreign contractors who have been here for many years are as familiar with our laws and practices as our local contractors. I am glad to say that there have been no unpleasant incidents so far arising from foreign firms being ignorant of our laws or taking them lightly. Similarly, to the best of my knowledge, there have been no complaints on foreign contractors withholding legitimate payments to local sub-contractors. In any case, sub-contractors can always have resort to legal redress. Public contracts are awarded on a tender basis. A local contractor cannot expect to get a job simply because he can do it, if his price is high. While there are local contractors who work as sub-contractors to foreign contractors, the reverse also happens, ie foreign contractors working as sub-contractors to a local contractor. Generally, our contractors have yet to acquire fully the technical know-how to undertake single-handedly complex projects such as MRT tunnelling, land reclamation and wharf construction. Even so, elements of complex jobs can be and are handled by local contractors who, in the process, acquire the necessary experience and skills, The more enterprising and professional contractors also often team up with foreign partners to successfully tender for projects and learn in the process. FIRE PREVENTION MEASURES IN HDB SHOP PREMISES 5.”
“TECHNOLOGICAL CAPABILITY OF LOCAL CONTRACTORS 4. Maj Fong Sip Chee asked the Minister for National Development (1) if he is satisfied that foreign contractors are conversant with our laws and conventions in the construction industry; (2) since most of the works have been sub-contracted to local contractors, if he will agree that this fact is sufficient proof that local contractors do have the technological capabilities to undertake these projects in the first instance; and (3) is he aware that some of these foreign contractors have unjustifiably and deliberately withheld legitimate payments to local sub-contractors.”
“In the last three years up to December 1984, more than 60 construction contracts were awarded to foreign contractors by the public sector. The total value of these contracts is about $3.6 billion. These contracting firms are either fully foreign-owned or have a foreign equity interest of 51% or more. A list of these contractors is attached (see Appendix I) (Cols. 343 - 344). Appendix I - LIST OF FOREIGN CONTRACTORS AWARDED PUBLIC SECTOR CONSTRUCTION CONTRACTS IN THE LAST 3 YEARS (1982-1984) (Cols. 343 - 344) Feedback from local contractors has indicated that they have been benefiting from working closely with their foreign counterparts, They are learning new skills in many areas of construction technology and are acquiring experience in new and more effective project management methods, especially in the area of costing and purchasing, planning and scheduling and works supervision. Their association with foreign contractors has also allowed them the opportunity to study other forms of organisational structure and corporate management styles. The knowledge gained is found to be useful for gearing up their own organisations to be more effective in their operations. A study carried out by the Construction Industry Development Board in 1984 shows that the transfer of technology is most evident and significant in project management and supervision. In addition, many Singapore contractors have also acquired new skills especially those required in more complex civil engineering works such as MRT tunnelling. Our efforts to promote transfer of technology are producing results. In the presence of foreign competition, our contractors have also been spurred to put knowledge gained into effect quickly in order to be more productive and competitive in the market.”
“It is not the Government's policy to intervene with the market forces in the property market in Singapore. Statements made by Government Ministers, or for that matter any person, may have an effect on property prices depending on the nature of the statements and the interpretations given to them by potential property buyers and sellers. During the past few months, the Ministry has not made any statement intended to affect property prices. FOREIGN CONTRACTORS ON PUBLIC PROJECTS 3. Maj Fong Sip Chee asked the Minister for National Development (1) to provide a full list of the foreign contractors in Singapore who have been awarded tenders for public projects; (2) the total value of these public projects; and (3) has there been any tangible result in the transfer of technology to local contractors.”
“No, I am not going to withdraw it. I just want to find out from the Member for Potong Pasir how long does he require to consider this offer, since he has made the calculation and come out with the definite figure that HDB is making $22,000 for every unit of 3-room flats, $40,000 for every unit of 4-room flats. The calculation must have been made, and I presume the Member for Potong Pasir must have a technical adviser since he himself is not an architect, not a developer. He is a lawyer. He has come out with a figure and speaking in the SDP party rally, I presume he must have got some expert advice in arriving at those figures. So may I know when he can definitely give me an answer.”
“Mr Speaker, Sir, I think this offer --- An hon. Member: Are you going to withdraw it?”
“Sir, I hope that the Member will accept the offer. He is a lawyer and I will be quite happy to arrange for an agreement to be signed as soon as possible. I would say that this is the simplest way to prove whether or not what the Member claims is true, and whether or not he is sincere in his claim.”
“So I would suggest that on this piece of land, the Member build a block of 3-room new generation flats, a block of 4-room new generation flats, a block of 3-room Model A flats, and a block of 4-room Model A flats. The HDB will supply him with the plans so that there will not be any claim that the HDB purposely prepares a set of very difficult plans so that he would not be able to build. It will be a standard plan for the types of flats built by the HDB in the 13st two years, in 1983 and 1984. After the Member has completed these four blocks of flats, the HDB will buy these flats from him at prices which the HDB offers to people on the waiting list tb buy HDB flats. In other words, the HDB will make no profit and, in fact, the HDB would have subsidized the land. The land will be offered to the Member or his Party for free to build these four blocks of flats. These flats will be sold to the people at the standard HDB prices. After he has completed these flats, he will sell these flats to the HDB and the HDB will allocate these flats to those applicants on the waiting list. So the Member will make this huge profit, not the HDB. If what he claims is true, that is, for every unit of 3-room flat, he can make $22,000, and for every unit of 4-room flat, he can make $40,000, then by building these four blocks of flats, his Party will make several million dollars. And his Party will become the richest political party in Singapore. An hon. Member: Accept the offer.”
“Mr Speaker, Sir, just now I made an offer to the Member for Potong Pasir while he was not in this House. Since he is here now, I would like to repeat my offer. On the 15th December, 1984, before the last general elections, the Member for Potong Pasir claimed, in an SDP rally in Ang Mo Kio, that the HDB not only did not subsidize the sale of flats to the people but also made substantial profits. He stated that the HDB was making $22,000 for each unit of 3-room flat and $40,000 per unit of 4-room flat sold to Singaporeans. In the sale of flats in 1983 and 1984, from HDB's accounts and from our own calculations, the HDB not only made no profit but had to heavily subsidize the sale of these flats. So in order to resolve this dispute and in order to clear this doubt whether the Member is right or the HDB is right, I now would like to make an offer to him. I will offer the Member a piece of land in a new town, free of charge. I will also help in the clearance of the squatters. Because if we offer the Member a piece of land for development and there are squatters on the site and those squatters demand a lot of compensation, the Member will say that the Government is not sincere. He will say, "You offered me a piece of land full of squatters, and I am unable to clear the squatters."The HDB will help him clear the squatters but he will have to pay for the cost of clearance of the squatters, which is a small sum, the average cost. Then on this piece of land, the Member will arrange to build four different types of flats. In 1983 and 1984, ie, the last two years, 80% of the flats sold by the HDB were the 3- and 4-room types of flats. And the most popular type of flats sold by HDB in the last two years were the new generation type of flats and Model A type of flats.”
“No, we will arrange for a suitable engineer to supervise the project, so it will not collapse. Definitely we must make sure that the flats are safe because we are going. to offer these flats to Singaporeans on the HDB waiting list. We cannot offer them dangerous flats that may collapse. If the Member for Potong Pasir is always questioning the sincerity of the Government, if he is really sincere and believing that HDB is making huge profits, we are now offering this good opportunity for his Party to make huge profits. And we are giving the land free to him, charging him nothing, and helping him with the clearance of the squatters so that he can get on with the building. And if he is making huge profits, he wants to build some more flats, I can assure him I will offer him some more land o build flats. If he is able to build flats much cheaper than HDB, why not? All the people will benefit, his party will benefit, HDB will benefit, Singaporeans will benefit by these cheap flats which the Member for Potong Pasir knows how to build while HDB does not know how to build. Thank you, Sir. [Applause] 2.46 pm”
“As I have said, the largest number of flats sold by HDB is the 3- and 4-room flats, and an overwhelming majority of these flats are the new generation and Model A flats. HDB will provide the Member for Potong Pasir the plans, free of charge, again, for one block of 3-room new generation flats, one block of 4-room new generation flats, one block of Model A 3-room flats and one block of Model A 4-room flats. These are the largest number of flats sold by HDB in 1983 and 1984. The Member for Potong Pasir can make arrangements either with his Party people or his contractor, or with his adviser. Someone must advise him how to calculate the cost of HDB flats for sale. He must have some expert advice. He can get an expert or several experts to advise him on how to build these flats. These four blocks of flats will be built according to HDB plans. HDB will not draw up new plans, so that HDB cannot be accused of trying to fix him by drawing very difficult or new plans which he is unable to build. These will be the old plans which are exactly the same for other HDB flats. So he will build those four blocks, and he will sell these four blocks to HDB at the same price as HDB sells to its applicants on the waiting list. According to his claim, for each unit of 3-room flat he can make $22,000 and for each unit of 4-room flat he can make $40,000. I think the Singapore Democratic Party would become the richest political party in Singapore if such a huge profit is made. An hon. Member: Will it collapse?”
“In both new town and outer suburban zones, where most of these flats were sold by HDB, the HDB was unable to recover the construction cost. In other words, most of the flats sold in the last two years by HDB - the 3- and 4-room flats - have to be subsidized on the cost of land. HDB has also to subsidize the overheads. HDB has to subsidize the interest. Yet the Member for Potong Pasir claims that HDB is making huge profits out of the sale of flats. I am not very sure whether this is due to the ignorance of the Member for Potong Pasir or his Party, or to the Member subscribing to the Nazi idea that if a lie is told repeatedly and often enough, it will be accepted as the truth. So the SDP has been continuously making the statement that the HDB is making money out of the sale of flats. Today I would like to throw a challenge to him that HDB will offer a piece of land in a new town for his Party or for him to develop. Of course, since all the lands are squattered, HDB will arrange for these squatters to be cleared, otherwise the Member will claim again that Government is not sincere because Government offered him a piece of squattered land and some of the squatters are asking for compensation of $1 million, $2 million or $3 million and so he will never be able to develop this piece of land. HDB will help him to clear the squatters. We offer him this piece of land free of charge - for nothing - in a new town, maybe in Nee Soon or in --- An hon. Member: Potong Pasir. Mr Teh Cheang Wan: No. There is no more land left in Potong Pasir. Then we will allow the Member for Potong Pasir to build four types of flats. In the last two years he has been claiming that HDB is making money.”
“The flats in Anthony Road which have been offered for rental will in no way affect HUDC applicants. In fact, HDB has built more HUDC flats than the number of HUDC applicants at present on the waiting list. Every applicant will have a chance of an offer of a flat. Another point the Member for Potong Pasir has repeatedly claimed is that HDB flats are not subsidized by Government. I am not sure how he arrived at that conclusion. However, in the last election, in almost every rally, the Member for Potong Pasir repeated the same allegation that HDB flats were not only not subsidized but, in fact, the HDB was making huge profits from the sale of flats. I would like to quote what the Member for Potong Pasir said on 15th December 1984 during an SDP rally at a car park in Ang Mo Kio: 'HDB is making $22,000 for every 3-room flat sold to the residents and $40,000 for every 4-room flat.' The Member for Potong Pasir, in his Party publication, The Demokrat, has on two or three occasions published figures and calculations on how the HDB accounts for the sale of flats. I have asked the HDB Contract Officer to look into those accounts but we are unable to comprehend how he has arrived at his accounts. From our accounts on the sale of HDB flats in the last two years, HDB has sold a total of more than 100,000 flats in 1983 and 1984, out of which 81.52% are 3- and 4-room flats. That means the -3- and 4-room flats form the overwhelming majority of flats sold by HDB. Most of these flats sold by HDB were built in new towns, such as Tampines New Town, Nee Soon New Town, Jurong East, Jurong West, Bukit Batok, and the HDB's classification of all these new towns is either in the new town zone or in the outer suburban zone.”
“Mr Speaker, Sir, I would just like to add one sentence to my answer to the Member for Alexandra on development charge. The Government will review the development charge. Mr Speaker, Sir, I wish to answer two points raised by the Member for Potong Pasir, who is not in the House at present, about the Anthony Road flats. The Member for Potong Pasir is insinuating that the Government has changed its policy by not offering the Anthony Road flats to HUDC applicants. Prior to the transfer of HUDC flats from the HUDC to HDB, all HUDC flats were built in isolated estates, no different from any private development. Government considers this undesirable and it would like to see that HUDC residents are integrated with the majority of Singaporeans, ie, in HDB estates. Therefore, after HDB took over the development of HUDC estates, Government made the announcement that all future HUDC flats would be built as part of HDB estates. Pine Grove and Gillman Barracks were the last two estates for HUDC residents which were built as isolated estates. In future all HUDC estates will form part of HDB estates. The rationale is that HUDC residents are better educated and we believe that some of the public-spirited people living in HUDC flats are prepared to give time to community work, such as serving in the CCC, RC and MC. Thus, if they are living in HDB new towns or estates, they would be able to serve in these community organizations. Therefore, when the Anthony Road flats were completed recently, HDB offered these flats for rental instead of allocating them to HUDC applicants. However, I would like to assure the House that HDB will build enough HUDC flats in HDB estates to meet the demand of HUDC applicants.”
“Assuming a developer has submitted his plan to the authorities for the development of, say, a piece of commercial land with a plot ratio of one, and he would like to increase this plot ratio by another two, which means that he would like to develop this commercial land with a plot ratio of three. If the authority approves his application, it means the value of the piece of land will be increased by about 200%. In granting approval, the authority will put a development charge, because the landowners are not doing anything to the land and the very substantial increase in the value of the land is the result of the Government granting approval to allow the land to be developed by three times the area allowed in the Master Plan. For this, the Government imposes a development charge. I think this is fair. At present 70% of the increase in value as a result of granting approval goes to the Government and 30% goes to the landowner as an incentive for him to develop. I think that without a development charge, the landowner will get a windfall. In other words, he will be earning a big income without any effort being put to it.”
“Mr Speaker, Sir, while the questions are fresh in my mind, I would like to reply to what the Member for Alexandra had said on development charge. Let me explain that in Singapore the price of land is based on two factors, ie, the zoning and the density. In the Singapore Master Plan every piece of land is zoned for a specific use. For example, if a piece of land is zoned "residential", it means that residential development is allowed. If the land is zoned "commercial", it means commercial development will be allowed. If the land is zoned "hotels", it means that hotels will be allowed to develop on the land. If the land is zoned "open spaces", it means that it will remain as open spaces and no development will be allowed other than recreational facilities. The price of the land is based on the zoning. Another factor, as I will explain, is density. If a piece of land is zoned "residential" with a density of 100 persons per hectare, the developer may build flats for say, four persons per flat (that is around 1,000 sq ft per flat, or around 100 sq metres.) So on one hectare of land he will be allowed to build 25 flats. If the density is 200 persons per hectare, 50 flats can be built. The same goes for "commercial" zoned land. If a piece of commercial land has a plot ratio of one, it means that, for every sq metre of land, the developer is allowed to build one sq metre of commercial space. If the plot ratio is three, it means that for every sq metre of the land, he is allowed to build three sq metres of commercial space. These are the two factors which determine the value of land: the zoning and the density or plot ratio.”
“Mr Speaker, Sir, I think the hon. Member did not pay much attention to what I said just now. I said that flat buyers have the. choice of selecting prefab flats with floor finishes, ie those who want finishes that are suitable for them, or opting for conventionally built flats and carry out their own flooring finishes. In other words, the buyer has a choice. For those who want flats with finishes, HDB has built flats with finishes. For those who do not want them, they can opt for the conventional type of construction. So they have a choice. RESIGNATION OF BRIG-GEN LEE HSIEN LOONG 2. Mr J.B. Jeyaretnam asked the Minister of Defence and Second Minister for Health whether the impending resignation of Brigadier Lee Hsien Loong from the Army was known or expected when he was promoted to that rank.”