Committee of Supply – Head T (Ministry of National Development)

Resumption of Debate on Question [6 March 2019],

"That the total sum to be allocated for Head T of the Estimates be reduced by $100". – [Mr Alex Yam Ziming].

Question again proposed.

The Chairman: Senior Parliamentary Secretary Sun Xueling.

The Senior Parliamentary Secretary to the Minister for National Development (Ms Sun Xueling): Mr Chairman, I would like to begin by thanking all Members who have spoken in support of the vulnerable, the less advantaged and the lower income. They are our fellow citizens, and Singapore is a shared home where we all belong.

Several Members have asked how we can better help tenants to have homes of their own. I would first like to share that the number of public rental households who moved into home ownership flats has increased steadily. The number almost doubled over the past five years, from about 700 in 2014 to about 1,300 last year. We are committed to helping more tenants move into home ownership.

Members have asked whether we are reviewing Fresh Start. I am pleased to announce some enhancements. First, we will raise the age limit on the youngest child for Fresh Start applicants, from 16 to 18 years old. This will allow more families to benefit from the scheme. The new age limit will also apply for other schemes for parents with dependent children, namely the Parenthood Priority Scheme, and ASSIST, the Assistance Scheme for Second-Timers who are divorced or widowed parents.

Second, we will intensify support for Fresh Start families through a new Fresh Start Support Programme. We have found through our experience that closer and more regular contact with families allows for early intervention to address issues that may emerge. The Support Programme will also take a holistic approach to strengthen them in various areas, such as financial management, family functioning and overall stability. The Support Programme will be overseen by MSF, and they will appoint a service provider with social work expertise, and this will commence later this year.

Third, there are also families who applied for Fresh Start but who did not meet some of the criteria. If they are serious about Fresh Start and have good potential to meet the criteria fully, they can get special consideration to join. Once they join, they may book a BTO 2-room Flexi flat within one year – like other Fresh Start families. They will also get more intensive support under the Support Programme, focusing on the criteria that they did not meet. They will need to meet all the criteria by one year before their key collection. We estimate that this will benefit about 80 families over three years.

We look forward to partnering our tenants closely towards home ownership. Chairman Sir, may I show some visuals.

The Chairman: Yes, please. [Slides were shown to hon Members.]

Ms Sun Xueling: This is Mdm Narziah and her mother. They have lived in a rental flat since 2006, with Mdm Narziah's daughter who is not pictured here. HDB met Mdm Narziah last year to share about Fresh Start, and she decided to apply. She welcomed the assistance under the scheme, and was appreciative that HDB officers met her in person to ask about her home ownership aspirations, and guided her through each step of buying a flat. She is now looking forward to her new flat in Tampines.

Mdm Narziah is not alone in her home ownership aspirations, and we want to help more families like hers.

In my earlier speech a few days ago, I shared that HDB will introduce a dedicated team to provide personalised guidance for families towards home ownership. The Home ownership Support Team will reach out to tenants who are more able to consider home ownership, for instance those who possess a stable income and family stability. Tenants who need advice on home ownership can also approach the team for help.

Miss Cheryl Chan and Mr Seah Kian Peng asked how we ensure that rents do not discourage tenants from working towards higher incomes and homeownership. Our public rental rates are structured progressively, to keep the subsidy allocation fair. Nonetheless, to mitigate cliff effects, HDB waives the rent increase for up to two terms when tenants first cross the $800 income threshold, if their income remains less than $1,500. In the last three years, about 5,200 households have benefited from this waiver.

HDB also reduces the rent for households on a case-by-case basis if they cannot afford it.

I would also like to emphasise that HDB does not ask tenants to leave solely because their income has increased past the ceiling of $1,500. Instead, HDB will work with them on their homeownership options once they are ready.

To further encourage these households, we will not increase the rent for those who have made the downpayment for a new flat. They will continue to pay the rent they were charged at the time when they made the downpayment. This will take effect for tenancies which commence from 1 June 2019. We hope this will put households in good stead for their next milestone as homeowners.

Mr Lim Biow Chuan suggested allowing tenants to buy over their rental flats. We currently have no such plans, as there are many measures to help tenants buy a new flat from HDB. This also maintains our rental flat supply for others who have no other housing options.

Mr Lim also suggested improving the living environment in older rental blocks. HDB has consistently upgraded rental flats just as they do for sold flats. But we want to do more, especially for older rental blocks built in the 1960s and 1970s. As the Member highlighted, some blocks have long corridors with rental units on both sides. As a result, the natural ventilation and light is more limited than those of newer designs.

To address this, HDB will undertake works to create more openings along the corridors, by removing some flats on each floor of such blocks. This will provide a permanent improvement for the residents in terms of the airflow and brightness of the block.

HDB has piloted this and the feedback from residents has been positive. Chairman, Sir, may I show some visuals?

The Chairman: Yes. [Slides were shown to hon Members.]

Ms Sun Xueling: This shows a typical corridor of a block with units on both sides. And this is a corridor at Blk 217 Ang Mo Kio Avenue 1, where HDB piloted the upgrading works. The works made a marked difference to the inside of each block – more common space, more sunlight, more ventilation. I have visited the older blocks and an improved block myself, and I think Members will agree with me that our proposed works will be a marked improvement. We will extend these works to more rental blocks, and we will provide more details in due course.

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As some tenants may need to move for the improvement works, HDB will help them to move within the same or nearby blocks. HDB will work closely with local organisations and the relevant agencies to ensure a smooth transition. Chairman, Sir, in Mandarin please.

(In Mandarin): [Please refer to Vernacular Speech.] Mr Lim Biow Chuan also suggested improving the living environment in our older rental blocks. IHDB has consistently upgraded rental flats just as they do for sold flats. But we want to do more, especially for older rental flats built in the 1960s and 70s.

As Mr Lim highlighted, some blocks have long corridors with rental units on both sides. As a result, the natural ventilation and brightness is more limited than those of newer designs.

To address this, HDB will undertake works to create more openings along the corridors, by removing some flats on each floor of such blocks. This will provide a permanent improvement for the residents in terms of the airflow and brightness of the block.

HDB has piloted this and the feedback from residents has been positive. I have visited the older blocks and the improved block myself and experienced the changes brought about by these works. I think Members will agree with me that our proposed works will be a marked improvement to the living environment of the rental blocks.

We will extend these works to more rental blocks, and will provide details in due course.

As some tenants may need to move for the improvement works, HDB will help them to move within the same or nearby blocks.

HDB will work closely with local organisations and the relevant agencies to ensure a smooth transition.

(In English): Mr Louis Ng and Er Dr Lee Bee Wah asked whether we can better support divorcees in their housing transition, especially those with children. Mr Ng also asked whether we can help young single unwed parents to rent a flat from HDB more expeditiously.

Last year, we lifted the time bar on divorcees to facilitate their housing transition after divorce. However, some still face difficulties due to acrimony between both parties. Some cannot take action on their matrimonial flat because their ex-spouses are uncooperative and do not adhere to the Court Order. Parties whose ex-spouses are uncooperative may seek legal help to resolve the issue, for example by applying to the relevant Court to vary the Court Order to empower the Registrar to sign on behalf of the uncooperative party.

There are also those awaiting their Final Judgment of divorce. They may be worried about their next housing arrangement, and hoping to apply for a flat earlier. This is understandable. HDB will now allow divorcing parties to apply for a new flat from HDB if they have an Interim Judgment and have settled the ancillary matters on their matrimonial property, and the custody, care and control of their children. This means they no longer have to wait until the Final Judgment in order to apply for a flat. They will just need to obtain the Final Judgment before collecting their keys, and ensure that they are still eligible for the flat that they booked. We hope this will give divorcing parties some peace of mind as they go through an emotionally difficult period.

A final group, as Mr Ng mentioned, are those with shared care and control of their children, who require agreement from their ex-spouse to buy a subsidised flat with their children listed. In such cases, both parents have a shared and equal right to list their children in their flat. That is why we start by encouraging parents to agree on the listings in the best interests of their children. But we understand that there may be difficulties sometimes, and so if there are indeed difficulties, HDB will look at the case more closely, and will be prepared to exercise flexibility to help protect the interests of the children.

For single unwed parents in need of housing, I assure Mr Ng that no applicant will be turned away at HDB's counters. HDB will first seek to understand their circumstances to see how best to help them, because their needs differ, and often the input of social workers is also required. We want to provide help, and will do our best to accommodate their requests for housing, be it to purchase a flat or to rent one.

These are just some examples of how HDB does consider individual circumstances which our housing policies may not cater to fully. This includes households above the public rental income ceiling, which Mr Muhamad Faisal Abdul Manap spoke about.

In the last three years, 590 households were helped with public rental despite exceeding the income ceiling. HDB considers each application holistically. The income ceiling, while relevant, is not the only factor considered.

Let me now speak about our work on animal welfare and management.

Mr Louis Ng asked how AVA addresses cat abandonment. AVA takes animal abandonment very seriously, and will investigate all related feedback. To establish the owner of an abandoned pet, AVA gathers evidence by walking the ground, interviewing witnesses, and reviewing CCTV footage. Persons convicted of pet abandonment can be fined up to $10,000 and/or imprisoned for up to 12 months for a first-time offence.

Nonetheless, we recognise the importance of strengthening upstream controls to deter pet abandonment. The Cat Welfare Society currently manages Project Love Cats, a pilot community-owned responsible cat ownership programme in Chong Pang, with the support of Government agencies. Under this pilot, CWS has been working with the community on microchipping pet cats to strengthen owner accountability. We can consider further expansion when the Chong Pang pilot meets these outcomes, and when there is strong community support in other parts of Singapore. In addition, the AVA intends to undertake a holistic review of the regulatory approach for pet issues, including how to promote responsible pet ownership and deter abandonment.

Mr Ng also asked for an update on the Trap-Neuter-Release-Manage programme, or TNRM. Developed in consultation with Animal Welfare Groups (AWGs) and veterinarians, TNRM is a humane way to sustainably manage the stray dog population nationwide. TNRM is being implemented in phases. Since its launch in November 2018, AVA and participating AWGs have been managing the operations at various sites across Singapore. Participating AWGs have been able to tap on SPCA's sterilisation clinic since February. In the coming months, AVA and SPCA will also set up a central pool of professional trappers to support the programme. AVA has concurrently been engaging stakeholders such as the Town Councils, People's Association, and grassroots organisations to raise awareness of TNRM and to address any concerns that may arise. Public feedback has generally been positive.

AVA will continue to ensure that animal and wildlife management strategies are grounded in science, and balance the needs and interests of various stakeholders. This will be further strengthened with the upcoming reorganisation of AVA's functions from 1 April 2019, as AVA's veterinary science capabilities will be combined with NParks’ expertise in ecology and conservation.

The Chairman: Minister Lawrence Wong.

The Minister for National Development (Mr Lawrence Wong): Mr Chairman, we are commemorating the bicentennial this year because the arrival of the British marked the major turning point in our history. The British also put in place our first town plans. They provided some basis to guide our urban development. But these plans were limited in scope and were unable to address our growing housing and employment needs. And that is why after Independence, we established our own long-term urban plans for the whole of Singapore. And we have been updating these plans over the years to guide our development. Each time, it gets more comprehensive in order to meet our growing needs and now, we have even started planning for underground spaces.

URA will launch the Draft Master Plan 2019 (DMP19) exhibition later this month and we look forward to public feedback and inputs on these plans. Our ability to do such detailed long-term planning is a major asset which few other countries or cities are able to do. And that is why every year, we host thousands of visitors at the Singapore City Gallery in the URA building, because they are keen to come and learn from us. Beyond planning, implementation is also important and that is why we are doing more to coordinate the implementation of new infrastructure; especially transport infrastructure which takes time to build. And that is something which Mr Png Eng Huat highlighted earlier.

So, we have good planning, long-term planning, and with effective implementation, we can continue to build a better city for Singaporeans, both now and in the future.

Let me start with what we are doing for our HDB estates, because this is where many Singaporeans live and we want to ensure a first-class living environment for everyone. Last year, we announced some significant long-term projects to rejuvenate our HDB flats and estates as they get older. They include initiatives like the Home Improvement Programme (HIP) 2 and Voluntary Early Redevelopment Scheme (VERS). These are major long-term undertakings and will need time to work out the details, taking feedback and suggestions and will provide an update when are ready.

Meanwhile, we are working hard to address several more immediate concerns. And today, I will focus on three key priorities. First, we will keep public housing affordable and accessible. Getting a home to settle down and start a family is a key milestone for many young couples. These aspirations are shared by couples all over the world.

But in many other cities, they face big obstacles. I watched the Hong Kong documentary recently. It is called, "有楼万事足". One couple in their late 20s wanted to purchase a home but could not find something suitable within their budget. Private apartments are too expensive, and public housing options are limited. For every subsidised flat that is put out, there are close to 60 applicants vying for it. And the cheapest 3-room unit is S$440,000. That is double the price of a 3-room flat in Singapore (which is also larger in size). Flats in Singapore are larger in size and much cheaper. Not to mention that our application rates are also far lower.

Housing is a major challenge in Hong Kong and it is so, in virtually all cities around the world. But in Singapore, young couple can realise their dreams of owning their own homes. Of course, from time to time, you would hear comments where people say "Don't compare to other cities. How about the price of HDB flats today compared with that in the 70s and 80s? Why is it so much more expensive today, compared to in the past?" But remember, incomes have also risen considerably over this period. And we really have to look at a broader range of affordability indicators, not just a headline price. MND monitors these indicators closely and we are committed to ensuring the affordability and accessibility of HDB flats.

With your permission, Mr Chairman, may I display some slides on the LED screens?

The Chairman: Yes, please. [Slides were shown to hon Members.]

Mr Lawrence Wong: Today, all first-timers applying for a BTO flat in a non-mature estate are successful within two to three tries. Mr Png highlighted the example of someone who had applied six times but was still unable to get the flat. I am sure for such cases, because I have seen some of them myself, they would have applied for BTO flats in mature estates or balance flats. I cannot stop people from trying these flats – balance flats or flats in mature estates, but given the limited supply of these flats, and the limited space we have in this areas, we really cannot meet all of the demands. So, those who wish to try for a balance flat or a flat in the mature estate, will have to try their luck and hope for the best in the ballot. But if they go for a BTO flat in a non-mature estate, all of them are able to get it within two to three tries. In fact, the vast majority get it within two tries and 100% within three tries.

We continue to price these BTO flats at significant discounts to market, and we offer generous grants of up to $80,000 for first-timers.

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The mortgage service ratio for first-timers in these non-mature estates is less than 25%. It is significantly below what it used to be in the past. I asked my parents who bought their HDB flat in the 1970s. They said that, indeed, at that time, when they bought their first HDB flat, it was about $25,000, which was about the price in the 1970s. But at that time, their combined income was less than a thousand dollars per month – just a few hundred dollars – and they had to fork out almost 50% of their income every month for mortgage servicing.

Today, the mortgage servicing ratio is less than 25%, below what it used to be in the past, and it is also well within international benchmarks of affordability. Internationally, when they look at housing affordability, they would typically look at the servicing ratio of around 30% to 35%. So, we are keeping well below that, not to mention that the vast majority of these first-timers are able to service their loans entirely with CPF – that means, with zero cash. And even for those who use cash, the amount is very little. So, these are indicators which we track and our commitment is to ensure that HDB flats remain accessible and affordable for all young Singaporeans.

As highlighted by Mr Alex Yam, we will continue to provide affordable housing options for different flat buyer profiles as well. We have flats of different sizes for first-timer and second-timer families; also 2-room Flexi flats for singles and the elderly. We monitor the application rates closely to ensure sufficient supply. The application rates for singles are still high, as Er Dr Lee Bee Wah mentioned, but I would assure her that we are trying our best, and they have come down. When we started, application rates were about 38 times. Now, the application rates for singles is slightly over four times. So, we are determined to continue to bring it down and we will build more 2-room units to meet the demand.

We are also very mindful of the needs of our vulnerable families including divorcees and single parents, and Senior Parliamentary Secretary Sun Xueling has just shared how we will continue to help them.

In short, we will strive to meet the housing needs of Singaporeans in different life stages. We will ensure that no Singaporean is left without adequate housing.

For first-timer couples, applying for a BTO flat is a major decision. One consideration is the location of the flat. Very often, potential buyers want to know the planned locations of future BTO sales exercises, not just the present one, so that they can decide whether to put in an application now or hold back and wait for a subsequent sales exercise.

We have been careful about revealing too much information on future sales, not because we want to withhold the information but because there will always be unexpected changes to building plans, for example, due to changes in market conditions or demand. But I understand why buyers would like more information to plan ahead. So, we will now share upcoming BTO projects half a year in advance. This means that for the upcoming BTO exercise in May, we will share the list of BTO sites for both the August and November 2019 launches. I hope this change will help flat buyers make more informed choices on their application.

We have also been studying ways to improve our BTO application processes. I spoke about this last year and I challenged HDB to shorten the balloting time. So, I am very happy to share that HDB has done a fundamental review of its processes and it has succeeded in reducing the time taken from six weeks to three weeks. This will take effect from the May 2019 BTO exercise onwards.

Mr Gan Thiam Poh asked for more support for first-timers to live near their parents; and also for families with children. These are indeed groups that we look out for. So, HDB will continue to offer more 3Gen flats to facilitate inter-generational living. We also offer various priority schemes, like the Married Child Priority Scheme (MCPS); Multi-Generation Priority Scheme (MGPS); Parenthood Priority Scheme (PPS) for first-timer parents; and Third Child Priority Scheme (TCPS); a long list of priorities targeted at the groups that Mr Gan mentioned. Based on our experience so far, applicants on these priority schemes generally have a good success rate.

Last year, we launched the first batch of shorter-waiting time flats, where the waiting time is reduced to two to three years by bringing forward the construction timeline. Mr Gan also asked if we can do more. Indeed, we would like to do so and we are doubling the number of shorter waiting time flats to 2,000 this year.

As I have explained, there will be a limit to how many such flats we can offer due to factors like site availability. But we will continue to review how much more we can do and whether we can compress the timeline further.

Those who need flats more urgently can go for the Sale of Balance Flats (SBF) or the Re-offer of Balance Flats (ROF) – SBF and now we have ROF where the flats that were not taken up under SBF goes into the ROF pool.

Last month, I shared that we will be allowing flat buyers to book flats from an open ROF pool at any time of the year. This will start from June this year, and we will share the details of how to go about the application process in due course. I think this will help buyers with urgent housing needs to secure a flat quickly because they do not have to wait for the next sales exercise, and the ROF pool will be there for them anytime of the year. But as Mr Alex Yam cautioned, we have to also make sure that the process is fair for everyone.

We are starting with a small number of ROF flats in this open pool. We will study the effectiveness and response to this new option, and continue, thereafter, to improve HDB’s sales processes.

Of course, besides buying new flats from HDB, there are also many options from the resale market. I thank Mr Yee Chia Hsing for his "sales pitch" to his residents to buy flats from the resale market. As he rightly noted, we cannot simply meet demand through new BTO flats entirely because there may be a risk of over-supply of such new flats. So, we always have to find the right balance between new flats and the resale market. That is why we have been enhancing the grants for resale flats significantly over the recent years. We have enhanced the CPF Housing Grant for first-timers; the Proximity Housing Grant (PHG) for those who live near or with their parents. Now, in total, grants of up to $120,000 are available for some families buying a resale flat. These grants could help subsidise almost half the price of their flat.

One couple who chose to purchase a resale flat and benefited from these grant enhancements is Mr Sean Morier and Ms Shannon Tan. They purchased a 5-room resale flat in Simei last year to live together with Shannon's father, Mr Tan Choong Ngiak. So, they benefited from both the CPF Housing Grant and the Proximity Housing Grant, totalling about $70,000; a significant help for their purchase.

As you can see, the couple has five children, including a recent addition to the family. So, it is a big family and I am glad they also have a bigger home now to raise their family and to have closer inter-generational family bonding.

With the enhanced grants, resale flats have become more attractive – there are 5% more transactions in 2018 than the year before. To give an illustration, five years ago, one in 10 first-timer families bought a resale flat. Today, about one in four first-timer families buy a resale flat because the grants have been enhanced and people can see that between BTO and resale, many still want BTO, but resale is quite an attractive option now with the enhanced grants.

So, we will continue to monitor the market closely, and review the quantum of grants to ensure this right balance between BTO supply and resale flats. Overall, our priority here is to ensure that HDB flats remain affordable and accessible for Singaporeans.

Our next priority is to support lower income and vulnerable families, particularly those who are in public rental housing today. Several Members have asked if MND can do more to help these families own their own homes. We have been and will continue to do so because we believe that home ownership remains central in providing stability and progress for families.

Senior Parliamentary Secretary has shared several initiatives that we are doing including the setting up of the Home ownership Support Team (HST) and the changes to the Fresh Start Housing Scheme.

Even with these changes, Fresh Start remains a targeted scheme for a select group of families with young children. There are others in rental flats who do not qualify for Fresh Start, but would still benefit from some help to purchase their own homes.

Today we have a Step-Up CPF Housing Grant (SUHG) of $15,000 – it is a specific scheme to help households who own 2-room flats in non-mature estates who wish to buy a larger 3-room flat.

We will expand the Step-Up Grant to cover second-timer families in rental flats because we want to do more to help these families move back to home ownership. So, we will extend the grant to those who can benefit from it and are ready to purchase their own homes.

We will also broaden the scope of the grant. Currently, it is limited to 3-room new flats in non-mature estates. But some households may prefer to purchase a resale flat, as we just discussed. So, we will allow the SUHG to be used when households upgrade to 2-room or 3-room flats in non-mature estates, be it new or resale. So, it is really an expansion of the grant in terms of the people who can apply for it as well as extending the scope of the grant to resale flats.

The expansion of the SUHG is part of our broader efforts to help our rental families progress. We have seen some positive outcomes. As you heard just now, the number of public rental households progressing to home ownership has almost doubled over the last five years from 700 to 1,300. With the above measures, we will try our best to help more public rental households achieve their aspirations of home ownership. Even as we do more on this front, we will also take care of those who continue to live in public rental flats, and ensure they have a good living environment.

As several Members highlighted yesterday, new rental blocks are better designed and also better integrated with the rest of the precinct. Now we even have sold and rental flats within the same block, and on the same floor.

But this is not the case for the older rental blocks. Some of these blocks were built 40 or 50 years ago to meet the housing needs of the post-war population, and there is a need for redevelopment of these rental blocks together with the rest of our housing stock.

With redevelopment, we can move some of the tenants in the older rental blocks to newer flats where they can enjoy a better living environment. Relocation is not easy, especially for the elderly and those with young children. We will support them in the transition. HDB will work closely with partners including local service providers to ensure a smooth handover of services provided for the tenants. We will provide details on the selected sites when we are ready.

All this will take time. Meanwhile, as the Senior Parliamentary Secretary shared just now, we will continue to maintain and improve our existing rental flats. That is something which Mr Saktiandi Supaat and Ms Cheryl Chan also highlighted.

Sometimes we have this misperception that rental flats are not eligible for upgrading unlike sold flats. Let me be very clear that is not true. All rental blocks older than 30 years have undergone upgrading programmes such as the Main Upgrading Programme (MUP), Home Improvement Programme (HIP), and Lift Upgrading Programme (LUP).

In fact, we do more with rental flats with specific improvement works that go beyond the scope of HIP, such as the installation of new tiles and new windows. We also provide EASE and repairs of spalling concrete and ceiling leaks for free. As the Senior Parliamentary Secretary shared just now, for some of the older blocks, we will do more to improve the ventilation and lighting along the corridors.

Beyond looking at the designs of the blocks, we will also improve the design of the flat itself to better meet the needs of tenants. Singles in public rental flats currently share a 1-room rental flat under the Joint Singles Scheme (JSS). We recognise that some tenants prefer privacy. So, we have tried out partitions in some of these new rental flats to create separate sleeping areas for each tenant. The feedback from these tenants has been positive. So, HDB will make available these partitions for all JSS units, in both existing and new rental blocks.

Our third priority area is to better meet the needs of our elderly, especially with the rapidly ageing population in the coming years. Mr Saktiandi and Mr Alex Yam asked about the monetisation and housing options available for seniors. One scheme, of course, is the Lease Buyback Scheme (LBS).

Earlier this year, we extended the LBS to 5-room and larger flats, and the response has been positive. In January and February alone, just within these two months, some 160 households from 5-room and larger flats have applied for LBS. And I agree with Mr Yam that we have to do more to raise awareness of this scheme. And that is why my MND colleagues and I, over the past few months, have been going around, constituency by constituency, reaching out to grassroots leaders and residents to explain to them what are the schemes available. I think more seniors are aware of the LBS and various monetisation options today, but we will continue to do more to raise public awareness.

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One couple who have applied for the LBS is Mr Mohamed Salleh and Mdm Normah. They opted for LBS for their 4-room flat, as they wanted to retain their flat to host their four children and 11 grandchildren when they visit. They prefer to keep their flat rather than move to a 2-room Flexi. On top of that, they have been living in the estate for the past 32 years and are familiar with the surroundings. So, with LBS, after keeping 25 years of their lease and selling the remainder to HDB, they were able to top up their respective CPF Retirement Accounts, which means they get a payout of about $950 per month for life. On top of that, they received their LBS bonus and cash proceeds of $110,000. So, it is an effective way for those who wish to monetise, and unlock the value of their flats for retirement. LBS is available for all elderly HDB flat owners.

We understand that LBS may not be an option suitable for everyone. Some may wish to right-size and move to a 2-room Flexi flat and so the options are available. Mr Saktiandi asked if MND can facilitate the sale of flats if seniors face difficulties, be it due to market sentiments or the Ethnic Integration Policy. We have discussed this before in this House, we recognise the concerns and HDB will continue to do its best to assist them, including by deferring key collection and giving them more time to sell.

One issue with regard to the purchase of older HDB flats is CPF rules, specifically the restriction in CPF usage for flats with less than 60 years of lease remaining. Some banks also take reference from these CPF restrictions when assessing how much loan to extend. As a result, both the CPF and loan quantums may be reduced for the purchase of such flats. The CPF rule is intended to safeguard the retirement adequacy of buyers who purchase older flats, but its design has led to some unintended consequences. For example, if a buyer would like to buy a 39-year-old flat, they can use full CPF, but one year later, because you hit this "less than 60" years requirement, the amount of CPF will be restricted. There is no good reason why this should be so just because the flat became one year older.

MND and MOM have been studying the issue. In fact the focus should not be on the remaining lease of the flat. What we want to ensure is that buyers purchase flats with leases that are long enough to last them for life. If that is done, then we can relax CPF usage rules, even if the remaining lease is less than 60 years. I have explained the thinking behind how we intend to change the CPF restriction. The details are being worked out, and we will announce them soon, for implementation in May this year.

As seniors right-size, we will provide more housing options for them. There are 2-room Flexi flats with shorter leases which have proven to be very popular among seniors. As far as possible, we are building these flats with convenient access to amenities, for example in Kampung Admiralty.

Assoc Prof Daniel Goh, Mr Gan Thiam Poh and Mr Murali Pillai also noted that some seniors are looking for alternative residential options like assisted living. SMS Amy Khor shared about this yesterday. Assisted living means "home and care" combined. So that is why MND and MOH must come together to offer assisted living, it is not something that one Ministry can do. When you go for assisted living, you are not just buying a flat, but a package of care services tied to the assisted living flat. That is very important. It is not just the hardware, it is the flat plus the services combined as one package. Typically, in such assisted living apartments, there will be more communal and shared spaces for residents to interact with each other, there will be services that are part of the package and the individual living units will be a bit smaller. That is a typical typology of an assisted living apartment.

As the assisted living model is new, we will conduct Focus Group discussions to seek views on the proposed concept for assisted living in public housing. We will take in feedback and views from the discussions and ensure that seniors will welcome such an option, and that the model will be sustainable for the service providers. We will work towards the launch of our assisted living pilot site for public housing at Bukit Batok next year.

We have also been exploring such retirement housing models for private residential sites. We are studying potential sites to pilot these assisted living typologies which includes, as suggested by Mr Murali, the option of converting vacant school sites into retirement homes. The key here is that, when we put out these sites for private developers or private players to bid, we do not want it to be simply a property play. We do not want them to take the site, build something and sell the units because with assisted living, these have to be a package of services plus residential combined together. We will need to craft the appropriate rules and safeguards to ensure that this happens. We are working on them and will provide details when we are ready.

Besides the three priority areas I have just outlined, many Members highlighted the importance of ensuring that our homes and estates remain liveable and vibrant and I fully agree with them.

HDB takes its role as master developer and planner very seriously. For new towns, much effort goes behind the scenes in planning and developing our estates, and ensuring the town has a full range of amenities and facilities and HDB is always looking to improve, taking in feedbacks, suggestions and how the next project can be done better.

For example, I visited Punggol recently where we opened the new neighbourhood centre at Oasis Terraces. This is prime site, where the neighbourhood centre is located. It is waterfront site, next to an LRT station. We could have sold this to a private developer, but we decided that it is central to the neighbourhood, we want to make it a HDB neighbourhood centre. So HDB develops it as a neighbourhood centre with integrated facilities, rooftop gardens, greenery, play areas, and lots of common spaces for residents to interact with each other. If you get feedback and responses from the residents, I think it has certainly been very positive. So this is the first of our new generation neighbourhood centres and we will be doing more in the coming years.

I would like to assure Dr Tan Wu Meng that the HDB is continually looking at ways to improve the design of new flats so that within the flat itself, they will be more common spaces to facilitate interaction between residents.

For our older towns, we have various upgrading plans in place. At the flat and precinct level, we have the Home Improvement Programme (HIP) and the Neighbourhood Renewal Programme (NRP). Mr Png highlighted some issues with the quality of HIP workmanship and some projects as well as the issue of clothes drying rack on the lower floors, so we will look at these specifically on these particular issues.

Er Dr Lee Bee Wah offered several suggestions – using Community Improvement Projects Committee (CIPC) funds for designated smoking points, smoke-free flats, and Temporary Occupation Licence (TOL) charges for essential services – again, these are all suggestions we will look into.

Mr Png Eng Huat asked about lift access for blocks without the Lift Upgrading Programme (LUP). I think he and several Members have asked this question before. We are continuing to explore technical solutions for the remaining blocks where lift upgrading is not viable today. Meanwhile, we have explained in this House for those who are in urgent need of direct lift access due to medical conditions or disability, they may approach HDB for assistance.

Er Dr Lee Bee Wah and Mr Png Eng Huat asked about our plans for Home Improvement Programme (HIP), particularly the next phase of HIP. We have ramped up the pace of HIP to complete upgrading for flats built up to 1986. All such flats will be announced for HIP by end of this year. Not completed construction, because that will take a while, but we will have announcement by end of this year. So the big question is: What about HIP for the blocks built between 1987 and 1997?

I am happy to share that, we will start selecting the flats for this batch of HIP from next year onwards. The scope of works will be the same as the existing HIP. There will be an essential component, covering things like spalling concrete, waste pipe replacement, electrical load upgrading which will be fully paid for by the Government and there will be an optional component covering bathroom upgrading and door replacement, which will be highly subsidised.

There are a total of 230,000 flats in this batch, so we are starting the announcement next year. It does not mean that everything will be completed next year, it will have to be done in phases over a period of time, but we will commence the process from next year onwards.

As Er Dr Lee Bee Wah highlighted, we also upgrade private estates through the Estate Upgrading Programme (EUP). We will select estates for next batch of EUP by the second half of this year and we will continue to review and see what more can be done for private estates.

Beyond upgrading, we are looking at Voluntary Early Redevelopment Scheme (VERS) and longer-term plans to systematically redevelop and rejuvenate our older HDB towns. As Mr Chong Kee Hiong said, this ought to be done not just at the individual block but also at the precinct level. We are planning well in advance for this because we do not want public housing in Singapore to degenerate into urban slums like what has happened in other cities. Public housing must continue to integrate Singaporeans of all backgrounds – we must never become segregated by class, race or income.

This also relates to the point made by Assoc Prof Walter Theseira about the differences in the prices of HDB flats across the island and whether this would lead to more social stratification. I think he has raised valid concerns and it is something we are aware of and we are continuing to watch out for, including looking at different ways in which we can mitigate against this. In the longer term, the best way to tackle this is to ensure that every part of Singapore is well developed, and that every HDB precinct has good amenities and facilities; convenient access to transport network as well as job centres closer to home. That is what we have been doing, and the upcoming Masterplan will continue with more efforts in this direction.

It does not mean that we can automatically equalise property values; but at least we can temper some of the excesses in the market. I should also say, when you speak to Singaporeans, you find that they have an attachment to a particular place and it often goes beyond monetary value. I grew up in the East, and my friends and neighbours will always say the East is special, we will never move. Indeed, many of them still stay there, their children are still staying there. When I Joined politics in 2011 and served in Boon Lay, in the West. Many residents in the West have a close affinity for the area and have many special memories growing up there. Now, I am a Member of Parliament in Marsiling-Yew Tee, in the North. My residents are proud to be in the North, they call Woodlands the star destination and I have come to grow fond of the area too.

Are there price differences in flat values between the different parts of Singapore? Yes there are. But the residents in each area take great pride in where they stay. It is about the memories they have of the place, the sense of community, the connection and identity with where they grew up and you cannot attach a price tag to these. So, we have to continue working hard to make sure that every HDB town, every precinct is kept liveable and vibrant, both now and in the future.

Besides upgrading our housing estates, we will also remake our city. Every major city in the world is constantly inventing and reinventing itself. That is the only way for cities to survive and thrive. Indeed, throughout history, cities have risen and fallen. Detroit was once the envy of the world, one of the most prosperous city in the United States, they call it the Paris of the West, and then it went into decline and became bankrupt.

Today, we enjoy high international standing as a modern liveable city; a beautiful city in a garden. But what we have today can be easily replicated in other cities, and they can very likely do it better as they have more space and more natural endowments. So, we cannot afford to stand still. As we remake our city, we must also prepare ahead for new challenges and threats. One major challenge is climate change. The scientific evidence here is clear – the world is warming up and it is happening sooner and more rapidly than people had expected.

That is why we are redoubling our efforts to make Singapore one of the greenest cities in the world. Several Members have raised this, and I am glad they did because it is a critical part of our development plans. When we say we are not done building Singapore, we are not just referring to more buildings and physical infrastructure.

A major part of this effort is to actively green Singapore for future generations. That means conserving and enhancing existing greenery, as well as safeguarding spaces for greenery even as we continue to develop. A greener Singapore will, in turn, help to mitigate extreme temperatures and provide a natural respite from traffic, noise and congestion.

12.00 pm

Today, we have more than 4,000 ha of gardens and parks, 3,300 ha of nature reserves, all linked together with park connectors. As Minister Desmond Lee highlighted yesterday, we are continuing to maintain and enhance our greenery. We are continuing to expand our green spaces and our network of park connectors, for example, with the Coast-to-Coast (C2C) trail and first segment of the Round Island Route (RIR) ready this year, and we are working to ensure seamless connection along a large stretch of the rail corridor up to Tanjong Pagar by 2021. The entire Rail Corridor is 24 km long. So, you can run up and down and do more than a marathon.

We are embracing green in the broader sense – not just biodiversity and greenery but also advanced clean-tech solutions, be it solar panels, electric buses, autonomous shuttles, zero-energy buildings or district cooling systems. We are testing out sustainable technologies at both the building and the district levels. These are all examples of what we are doing to be a leading sustainable city.

Technology is a major game changer here. That is why we are also investing in R&D in a whole range of urban solutions – from building materials to smart sensors to underground space. For example, we are trying out coatings or construction materials that absorb less heat and that can help lower the ambient temperature. And once proven to be technically feasible and cost effective, we will look into implementation of these and other technologies.

So, let us be very clear. Our next phase of development cannot just be a continuation of business as usual practices. We will set higher eco-friendly standards and new urban practices for sustainable living. That is also how we can stay relevant and useful to many other cities around the world, all of which are grappling with similar issues.

Even as we do all this, we recognise that tackling climate change requires a concerted global response, and there is no certainty how this will evolve in the years to come. According to projections by the UN panel, if global emissions continue on their current trajectory uncurbed, sea levels could rise by around one metre in 2100. Even if countries pursue all the measures committed under the Paris Agreement – and that is a big "if" – sea levels are still going to rise, albeit at a lower level of around 0.7 metres.

Of course, there are many uncertainties surrounding these projections. But I would say there are more downside risks than upside. For example, if the Antarctic ice sheet melts faster than expected, the sea level would rise dramatically and it may well happen earlier – causing significant global impact by 2050, and that is just 30 years from now. Imagine what this means for our little red dot which is low-lying and surrounded by water. So, climate change is not a remote issue; it is an existential threat.

That is why we have been carefully studying the risks and impact of sea level rise, and looking at detailed measures to protect our coastal areas. Major investments will be needed in the form of reclamation, sea walls or pumping stations. The Dutch are used to this. Many of them are living below sea level today in Rotterdam and we are learning from their experience with our polder project in Pulau Tekong. We are sizing up the full extent of the infrastructure that is needed. These are long-term investments, but we are preparing well ahead and putting in place the necessary protective measures within the next 20 to 30 years.

Remaking our city is not just about preparing for challenges. There are also many exciting opportunities ahead and we have plans to make Singapore stand out as a leading city for Asia and the world.

We are planning for three major gateways in the East, West and North. These key developments will help support our growth and create more jobs across the island. So, there will be more opportunities for Singaporeans to live and work closer to their homes.

Of course, we also have to focus on the centre. We have plans for the East, West and North, but the centre and the South cannot be neglected. So, we will rejuvenate our city centre. This has historically been at the heart of economic, civic and cultural activities, and we will ensure it remains attractive and vibrant. We have just revealed exciting plans for Orchard Road. We want it to be more than just a shopping destination. There are different precincts along the 2.4-km stretch of Orchard Road offering more diverse and vibrant lifestyle destinations so that, we can make Orchard Road one of great streets of the world. Nearby, we have the Civic District, Fort Canning Park, Bras Basah and Bugis. We can connect all of these together to create an expanded arts, cultural and heritage precinct.

Within the city, the core area is the CBD. Downtown CBD – Raffles Place, Tanjong Pagar/Maxwell, Robinson/Shenton – is largely dominated by older office developments, single-use offices, quite unlike the Marina Bay CBD extension which was planned as a mixed-use district.

Most of the buildings in the CBD are privately owned. We have an existing scheme to allow intensification of commercial buildings through bonus plot ratios. Most eligible buildings have already made use of this to maximise their development. So, it is timely for us to review. We will explore new incentives to better support rejuvenation in the CBD. Specifically, we want to encourage more mixed uses in the CBD, such as residential and hotel, so that there will be activities beyond office hours. This will also better optimise and intensify the use of prime CBD land. Then we can make our CBD not just a place to work, but also an attractive and vibrant place to live and play.

Our plans are not just confined to the main island we live in. Singapore is made up of more than 60 offshore islands. We have major development plans for Sentosa and Brani to offer new attractions for tourists and Singaporeans alike. We have started reclamation work in Pulau Tekong for military training. We will also carry out improvement works on Pedra Branca. These works will enhance maritime safety and security in the area, and provide more rapid response for search and rescue.

In the longer term, we have two major sites for future redevelopment. These are at Paya Lebar and the Greater Southern Waterfront. At Paya Lebar, the relocation of airbase will free up 800 ha of land and remove current height restrictions around the area. It is a new area, bigger than the size of Ang Mo Kio Town for both public and private housing. For the Greater Southern Waterfront, the movement of ports will free up 1,000 ha. In addition, there are non-port areas like the Pasir Panjang Power District, Keppel Club and Sentosa, which contribute another 1,000 ha. Altogether, the footprint of the Greater Southern Waterfront is 2,000 ha of prime waterfront land, six times the size of Marina Bay.

These are long-term developments. For the Paya Lebar site, work will only start after 2030. For the Greater Southern Waterfront, the project will take more than 20 years, but we will make some moves within the next five to 10 years. For example, in Pasir Panjang, we will push the existing substation there underground. SP is working on this and it will be the largest underground substation in Singapore. We will repurpose the former power station buildings and open up the area to the public. We will enhance green spaces in Mount Faber and develop the Pasir Panjang Linear Park. And in the area where Keppel Club is today, we will develop new housing and residential options after the land is returned to the Government.

Over time, we will redevelop and stitch together the entire waterfront from Pasir Panjang to Marina East. It will be an exciting new waterfront development with green and blue spaces for all to enjoy.

Mr Chairman, let me conclude. Over the last 50 years, Singapore has transformed way beyond what anyone could have imagined. Our homes, transformed from kampongs to beautiful high-rise buildings with sky gardens, surrounded by playgrounds and parks. Our city, transformed from overcrowded slums to a green and vibrant metropolis.

To our founding Prime Minister Mr Lee Kuan Yew, this transformation from mudflat to metropolis was a unique opportunity. As he put it in an interview with Centre for Liveable Cities, “I’m pleased that we redeveloped the city when there was a chance to do it… ...That was a chance of a lifetime”. That was a chance for his lifetime. But now we have the chance of our lifetime to re-imagine and to remake our city. This is much more than just having bigger and taller buildings. As Mr Lee once said, Singapore is more than just a place on the map. Our city must reflect who we are as a people – our spirit and our values. We want to make Singapore an outstanding place where all can strive for a better life even in an uncertain and volatile world. We want to create new versions of urban living, each more fulfilling and sustainable; more beautiful and fun than the previous one. This is where the human spirit will flourish and inspire.

So, we invite all Singaporeans to join us in this exciting journey. We are definitely not done building Singapore. Our best days are ahead of us. There is much more we can achieve together. Thank you, Mr Chairman. [Applause.]

The Chairman: Mr Alex Yam.

Mr Alex Yam (Marsiling-Yew Tee): Thank you, Chairman. I have three clarifications for the Senior Parliamentary Secretary. The first is that in my speech last night, I asked for some details of the Home Ownership Support Team (HST). What are the criteria that they will be considering and what is their ambit and how many rental households could potentially move towards home ownership in the next five years?

The second clarification relates to what the Senior Parliamentary Secretary shared earlier on the Fresh Start Housing Scheme. In terms of the new Fresh Start Support Programme (FSSP) and the appointment of a new service provider, how would this differ from the existing work that our FSCs are doing on the ground because the numbers are relatively small? I note that there are some differences between those who are emplaced and those who successfully apply for a flat. What has been the main barrier to those who are emplaced but do not qualify thereafter?

Ms Sun Xueling: I thank the Member for his question. With regard to the difference between FSSP and FSCs, the new FSSP will focus on supporting the families to stay on track for a fresh start towards home ownership. For example, they will look at how they can help them ensure that they have enough housing budget to be able to afford the flat. For FSCs, they look at how to ensure family stability for the family unit. But for the purposes of ensuring that the family successfully gets on to home ownership, FSSP will work together with FSC to achieve that purpose.

Mr Yam, you had a question about the numbers for FSSP?

Mr Alex Yam: Numbers in terms of what is the main barrier to those who are emplaced but do not quality.

Ms Sun Xueling: Okay. Many of the rental families have very unique situations that they sometimes have to overcome. It could be issues, such as income stability, they may be facing challenges in terms of medical or social conditions. These are the various areas that FSSP will work with the families to help them overcome.

Mr Alex Yam: In terms of the Home Ownership Support Team?

Ms Sun Xueling: Sorry, could I ask you to repeat the question? You have quite a few questions. I apologise.

Mr Alex Yam: Sorry, Chairman. If I may just repeat the question. Last night, I mentioned that I welcomed the announcement of the Home Ownership Support Team. Could the Senior Parliamentary Secretary update the House on the ambit of this Team and what are the conditions that the Team will be looking at to identify households that can potentially become home owners? Finally, what are the numbers that could potentially move towards home ownership in the next five years?

Ms Sun Xueling: I mentioned in my earlier speech a couple of days ago that we are looking to set up the Home Ownership Support Team (HST) later this year. We hope to outreach to about 1,000 families. As to the conditions that they will consider, it is quite similar to FSSP. They will look at whether the families are stable, whether they have income stability, that they do not have family conflict and, if they have some of these challenges, how they can work with them towards home ownership.

The Chairman: Er Dr Lee Bee Wah.

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Er Dr Lee Bee Wah (Nee Soon): Thank you, Sir, I have many clarifications but I will ask two first.

First, I would like to thank Senior Parliamentary Secretary Sun Xueling for sharing about the support for divorcees. But there are some who are stuck in their housing transition.

I met a resident whose divorce was finalised and the Court ordered for the flat to be sold. It has been a few years, but the flat is still unsold because her ex-husband refuses to open the door for viewings. And she cannot buy her next home because she is listed as an owner of the flat. She also needs the proceeds from the sale to buy her next flat. So, my question is: is there anything that HDB can do to move along the sale of the flat so that she and her children can move on with her life?

And my next question is for Minister Desmond Lee. Yesterday, he answered about this heavy vehicle park. It is indeed a big problem faced by many residents in Yishun New Town. I would like to urge the Minister to look into how to have better use of the Seletar Aerospace Park. There are three or four lane roads there, which are, at night, so empty; it is a ghost town. So, whether can we make use of some of those roads to have the season heavy vehicle parking.

Ms Sun Xueling: I thank Er Dr Lee Bee Wah for her question. Indeed, it is a difficult situation, the example that she cited. As both parties are legal owners of the flat, HDB cannot act on the sale without the signatures of both parties. For the example that she mentioned, it is possible for the resident to apply for a variation of the Court Order, like I mentioned in my speech, to include a provision for the Registrar of the Court to sign on behalf of the uncooperative party. And for the instance she mentioned about viewing times, timeline for the sale of the flat, the resident can also seek legal help and have that included in the Court Order as well. But I guess the starting point is that her resident would have to consult a lawyer and have the Court Order varied.

The Chairman: Er Dr Lee Bee Wah. You want to clarify that?

Er Dr Lee Bee Wah: For cases that have been concluded many years ago, how does one go about getting the Court Order? Is it still possible? In fact, this is not only one case because, recently, I have come across quite a number of similar cases where the ex-spouse and the parents still continue to live inside and refuse to let the potential buyers view the flats.

Ms Sun Xueling: Yes, it is possible to still bring a case against the uncooperative party. And I would like to add if the party refuses to cooperate, you can bring up a case for contempt of the Court and he can actually be penalised for it.

The Chairman: Minister Desmond Lee.

Mr Desmond Lee: Mr Chairman, we are mindful of the local needs for heavy vehicle parking. At the national level, there are more than adequate heavy vehicle lots, but we are quite mindful that at local level, there may be certain needs. My colleagues from URA and LTA have been working with colleagues where there are specific pain points. I would like to assure the Member that we will send a team to Yishun South.

The Chairman: Mr Zainal Sapari.

Mr Zainal Sapari (Pasir Ris-Punggol): Mr Chairman, I have a clarification for the Minister of State Mr Zaqy Mohamad. I welcome MND's move to explore provision for rest areas under the new planning parameters. However, would MND review its current policy to consider rest areas included under the item not counted under GFA so that it will be excluded from a Development Charge (DC)? And I think this would incentivise existing building owners to carve out rest areas for the workers.

Mr Zaqy Mohamad: Chairman, I thank the Member for taking a keen interest on the welfare of our cleaners and the other low-wage workers. Let us look at what we have today. BCA's Design for Maintainability Checklist already encourages provision of designated rooms of sufficient size for cleaners to both rest and store their personal items. So, we do have something which encourages.

I think for the long haul, there are limitations on the use of DC exemptions to promote specific use. Because DC will only apply in cases where the proposal would result in an enhancement of the value of land. So, if there is no enhancement of value, then, it is not applicable. But rest assured, MND and MOM are both looking into this and we will see how we can do better to promote rest areas in buildings.

The Chairman: Assoc Prof Walter Theseira.

Assoc Prof Walter Theseira (Nominated Member): Thank you, Chairman. I agree with the Minister that all HDB estates are and must continue to be good towns that are special to our hearts, regardless of price differences.

There are a number of older flats, rental and public, in the central region. These sites are getting on in years and they will have to be redeveloped at some point. May I ask the Minister does he believe that there will continue to be a role for public housing even in the heart of town, even in very prime areas? And if so, what can be done to ensure that such flats continue to reflect the broad majority of Singaporeans, the heart of Singapore, rather than just the elite?

Mr Lawrence Wong: Mr Chairman, certainly, where you see HDB flats today in the central area, be it rental or sold flats, at some point in time, when we redevelop, we do intend to continue injecting public housing in these same areas. We have already been doing so in small pockets and we will plan to do so in a bigger way with long-term rejuvenation.

I think Assoc Prof Theseira highlighted a concern about pricing. And as he said in his cut earlier, it is very difficult to get this balance right because if you price it to market, then only the very well-off can afford. On the other hand, if you want to make it affordable, then the only way is through a big discount to the BTO price but that leads to a lottery effect and the lucky guy who gets the flat get a so-called "windfall", compared to others who buy flats elsewhere. And that is not a fair distribution of housing subsidies.

Assoc Prof Theseira did talk about various options to try and think about different ways of selling HDB flats in these central locations. I will take on-board these suggestions and we will continue to study what is the best way forward.

The Chairman: Mr Murali Pillai.

Mr Murali Pillai (Bukit Batok): Mr Chairman, Sir, I am heartened to note from the hon Minister's speech that young couples applying for BTO flats in non-mature estates will be able to secure their flats within two to three bids.

I have a query in relation to young couples whose combined incomes breach the income ceiling. I understand that the policy objective behind the income ceiling is to husband the housing subsidies such that we direct it to those who need it the most. However, in relation to young couples whose incomes breach the income ceiling, they may not necessarily have an option to purchase a condominium because condominium prices have increased quite significantly as well. I welcome the hon Minister's comments on this, please.

Mr Lawrence Wong: Mr Chairman, as Mr Murali highlighted, the intent behind the income ceiling is really to ensure that we manage our fiscal resources prudently and we ensure that there is public housing for at least 80% of the population. And the income ceiling continues to be updated over a period of time. We will continue to see how it can be updated as incomes grow so that more Singaporeans can benefit. In the meantime, for those who exceed the HDB income ceiling, there are options like the Executive Condominiums (ECs) which they apply for as well.

The Chairman: Mr Saktiandi.

Mr Saktiandi Supaat (Bishan-Toa Payoh): I would like to seek two clarifications. This first one is to Senior Parliamentary Secretary Sun Xueling. I am glad to know about Home ownership Support Team (HST). She mentioned it repeatedly, today and before this as well. But she mentioned about income stability just now, in terms of criteria.

Most of the applicants need to have 12 months of continuous employment. In most cases where I have seen residents come to me is when they have difficulty in meeting that 12-month continuous employment, particularly because they are working part-time, or they are in between jobs, or they are either gig workers or temporary workers.

So, in such situations, can HDB, on top of giving the usual answer where they will be flexible in such circumstances, whether they can review such cases for the HST cases in the future?

Second clarification is to Minister Lawrence. I think it is very apt that the Minister highlighted about the rising seawater levels as an important issue, going forward. Can Minister share with us whether there is a timeline when Government will actually share with the public or Parliament the impact of the seawater level rising on housing in general, in Singapore in general and also in terms of budget expenditure, maybe in the future. It would be useful because it is a particularly important concern for Singapore in in the long run.

Ms Sun Xueling: I thank Mr Saktiandi Supaat for his question. On calculating the income, I just would like to share that income from odd jobs is counted when we look at income stability for the applicant. We do not just look at HST separately from FSSP. Basically, we want to work with the applicants if they demonstrate that they are very keen to get on to home ownership. So, where there are specific criteria that they face difficulty meeting, the HST or the FSSP, depending on which programme that he can get on, they will work actively with the applicant to try to help him meet the criterion which he finds challenging at that point in time.

Mr Lawrence Wong: Mr Chairman, the short answer to the question is yes. This is certainly an important issue which we will share with Singaporeans when ready. As I mentioned, we are now doing very detailed studies around the coastal areas in Singapore, that is, which are the more vulnerable areas, how will rising sea levels impact these coastal areas and beyond within Singapore itself. And then, on top of that, what are the appropriate protective measures to take. And there are a range of different measures that are necessary and all of these will require major investments. We have time to do it but we are planning well ahead. And when we are ready, we will certainly share this information with Singaporeans.

The Chairman: Mr Lim Biow Chuan.

Mr Lim Biow Chuan (Mountbatten): Thank you, Mr Chairman. Just some questions for the Senior Parliamentary Secretary. I am glad to hear of the improvements to the older rental flats. I just want to ask Senior Parliamentary Secretary Sun Xueling. How many blocks will be expected to benefit from these improvements? And whether she can share the likely localities for improvements? And what is the indicative timeline for HDB to start work? And a last question is, would there be any grants to help those who are affected, shift?

Ms Sun Xueling: Nation-wide, HDB manages about 230 rental blocks. I had mentioned in my speech that the improvement works we are looking at are for blocks built in the 1960s and the 1970s. So, it will be a subset of the entire stock of rental blocks that we have. Like I mentioned, the improvement works are specifically to assist with lighting as well as for ventilation.

So, the rental blocks are dispersed across the whole of Singapore. There are some specific areas where rental blocks in the 1960s and 1970s are congregated. We will be identifying the blocks and we will release more details in due course. As for the preparation works for the improvement works, we are looking to start this in the later part of this year.

The Chairman: I would like to volunteer the blocks in my area for upgrading. Mr Louis Ng.

Mr Louis Ng Kok Kwang (Nee Soon): Thank you, Chairman. Minister Desmond mentioned last night that we are reviewing the EIA framework in Singapore. I think that was already mentioned in June 2017 if I am not wrong. I am just wondering whether is there a timeframe for this review and when do we expect to complete it.

For Senior Parliamentary Secretary Sun Xueling, I thank her for mentioning that we are going to review pet ownership in Singapore. But could I just ask, very specifically whether MND is reviewing the possibility of micro-chipping and licensing pet cats in Singapore so that we can deter pet cat abandonment.

Second, with regard to the single-unweds, I am very thankful that you have said that HDB will accept the application for HDB flats at the HDB counters. But I do understand this is still subject to a case-by-case review. So, I am hoping that moving forward, maybe we can just specify some criteria where applications will be accepted and where they will be rejected, so that there will be some certainty to the single-unweds rather than just saying that we will exercise flexibility.

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Mr Desmond Lee: Sir, the EIA review has been on-going for some time. It requires us to look at the entire process to understand the experience of the last few EIAs and we endeavour to put something out, this year.

Ms Sun Xueling: I thank Member Mr Louis Ng for his questions. The review that the AVA will be embarking on, as I had mentioned, is to look at how we can promote more responsible pet ownership, as well as deter abandonment. So, we will look at a variety of measures. We will also be looking into the additional measures that you talked about. This will be part of our entire holistic review of what is the best regulatory approach to deter pet abandonment.

I would just like to add that I think it is very important that the education part of it goes upstream. And work with the community and pet owners, to encourage them to be responsible pet owners, I think that is going to be very important. Because when you look at regulations, we have to balance the needs of various stakeholders. So, I just want to add that.

On your question about single unwed parents, they can face unique family situations. When we consider their need for housing, we will look specifically into the background, whether or not they have family support and their income levels. They may face a variety of issues at home. That is why whenever we consider the situation for single unwed parents, we also seek inputs from social service workers. So, I would just like to assure the Member that we take a very holistic approach. It is very case-specific and very specific to the individual, but it is a very holistic approach. And our main aim is to be helpful and to ensure that single unwed parents with children will have a roof over their heads.

The Chairman: Mr Yee Chia Hsing.

Mr Yee Chia Hsing (Chua Chu Kang): I would like to ask Mr Lawrence Wong whether couples buying a bigger BTO flat get a bigger housing subsidy compared to couples buying a smaller BTO flat. If that is the case, why is it that the CPF housing grant for first-timers buying resale flats is smaller for couples buying bigger BTO flats?

I would also like to highlight that before the increase in 2017, the amount of CPF housing grant is flat regardless of the size of the resale flat that these couples are buying.

Mr Lawrence Wong: Mr Chairman, we have tiered the CPF housing grants simply to make it a more progressive measure. So, for those who are buying 3- or 4-room flats, they will get a larger grant, and if you are buying a bigger flat, we size it a bit smaller.

So, we have increased for both, but we have tiered it compared to the past. I think having that progressivity in the grants can be helpful given the considerations that we have in wanting to address some of the concerns about social inequality that we face in society. So, the tiering of the grant was a move in that direction. I do not think it will deter those who have the means to buy a bigger flat, and if anything, we want to also send a right signal that home-buyers ought to be prudent – do not overstretch themselves unnecessarily, but buy a flat that is suitable within their means.

The Chairman: Mr Chong Kee Hiong.

Mr Chong Kee Hiong (Bishan-Toa Payoh): The Minister mentioned earlier that there will be more clarity in BTO prices so that applicants could better assess their affordability. At the time of application of flats, there is also home-loan assessment on how much the applicants could borrow.

However, when the time comes for key collection, the applicants may have a lower income because of change of job or because of the environment. Therefore, they may not be able to afford the same flat.

At the same time the grant given to applicants are assessed at the point of application. So, it is sort of a double-whammy: he cannot get a higher grant because he was assessed earlier; and because of his reduced income, his home-loan entitlement has dropped and so he could no longer afford the flat the he applied earlier. Could the Minister explain how HDB could help this group of applicants?

Mr Lawrence Wong: Mr Chairman, we do see some of these cases. There are not many of them, fortunately. But from time to time, we do have examples of home-buyers who, very unfortunately, during their waiting period, something happens to them before they could collect their keys.

HDB tries to be as helpful as possible. One way is to see how best to support them still with the loan quantum. Even if their incomes have somewhat come down, so long as they have the means to service the loan, then we will try to, perhaps, even with lower incomes, still consider maintaining the same quantum or not reducing it so much, so that they can still afford the flat that they had earlier purchased.

The qualification here is that we do not want, as I said earlier, to end up with them overstretching themselves and their finances. So, we will assess each individual case and see how best to support them, firstly, on the loan.

Secondly, if truly, the circumstances are so dire that even with the help on the loan side, they cannot continue with the transaction, then we will assist to see if, perhaps, changing to a smaller flat might be a better option for this person or couple.

The Chairman: Mr Dennis Tan Lip Fong.

Mr Dennis Tan Lip Fong (Non-Constituency Member): I have a clarification for Minister Desmond Lee. I thank him for his answers yesterday. Could I just clarify with him regarding the lane usage of the park connectors on the point that I raised, which is the safety of the park connectors? Specifically, are people allowed to walk on the two lanes with the different markings?

I say this because, if that is the case, then really, I would like the Ministry to consider reviewing the lane markings because it is really unsafe when you have people walking on both sides and the PMD users, the cyclists and other users who have to wade through the traffic, and people are not exactly keeping left. Keeping left in such a situation may not really be the correct thing to do as well.

Mr Desmond Lee: I thank the Member for his observations. Certainly, NParks will relook at the way in which we explain the usage of the lanes and the PCN to ensure that both pedestrians and users of bicycles and other mobility devices have a seamless understanding when they move on to PCNs from the shared lanes that are under LTA along our pedestrian walkways. Some, of course, are shared; some are separated.

The clarity needs to go out in terms of public education, also in the signage. Also, the markings need to be tweaked. So, we will continue to review this.

The Chairman: Mr Louis Ng.

Mr Louis Ng Kok Kwang: I have just one follow-up question for Senior Parliamentary Secretary Ms Sun Xueling. Could I check how long does it usually take HDB to process the application for the single unweds, say, for rental housing?

Ms Sun Xueling: That would depend on the submission of the documents that are required, as well as whether the inputs from the social worker has come in. But in general, if it is an urgent case, and the assessment can be quickly done, the rental application can be processed quite quickly. In general, the rental application time is about two to three months.

The Chairman: Er Dr Lee Bee Wah.

Er Dr Lee Bee Wah: I have clarifications for Minister Lawrence Wong.

The Chairman: How many clarifications do you have?

Er Dr Lee Bee Wah: Three for Minister Lawrence Wong; and three for Minister of State Zaqy Mohamad.

I am very heartened to hear from the Minister that the building of 2-room flats has been intensified, and the singles do not have to wait for too long to buy their 2-room flats. I would like to ask if MND will consider letting the singles buy 3-room flats as some of them would want to accommodate their parents.

The second question is: for HIP2 for flats built in 1987 to 1997 of which the announcement will be made next year, when will be the announcement for the last batch be made, based on the current plan? This is so that residents can know because there is an expectation.

The third question I asked in my speech was: whether the large-scale town-wide funding can also be extended to private estates? This is because I find that some of the private estates are really short on amenities, and the best way could be to make use of the large-scale town-wide funding as those areas may not qualify for EUP.

And I have three questions for Minister of State Mr Zaqy Mohamad. I am glad to hear about the Inter-Agency Coordinating Committee (IACC). Will IACC also look into TOP and CSC processes? This is because for some of the projects, the TOP or the CSC have been stuck there for a long time due to certain compliance matters taking a long time and not moving forward. On the one hand, the developers are very worried about the quality control imposed and want to apply for TOP. On the other hand, there is the compliance issue.

The second question is about awarding contracts to local contractors. We are aware that there is a WTO requirement, but I hope that the Minister of State is also aware that some of our local contractors have grown and they are ready to take on big projects like those which are $400 million and above. I hope that there are certain ways to see how we can let our bigger contractors have a bigger share of the pie of bigger projects.

The third question is about services diversion which, very often, take a long time and hence they delay the projects. Is there any possibility to get whatever service diversions within the land parcel diverted before the land is put up for tender? Or can the diversion be concurrently done, because it takes a long time to carry out the diversion subsequently.

Mr Lawrence Wong: Mr Chairman, on singles applying for 3-room flats, I would say the MND considers all these options continuously as we review our policies. But let us now start by clearing the demand for 2-room Flexi flats first. That is the priority for now, and I would not want to commit to another extension of the 3-room flats, and then have another backlog building up, and we will be running after so many different queues with insufficient supply to meet the demand. We have already brought it down to an application rate of just above four. We will focus on that before we think about any further changes.

On the HIP schedule for the flats built from 1987 to 1997, I said we would make the announcement in 2020 which actually means we will be inviting all the Town Councils to select and nominate the first batch of 1987 to 1997 flats by later this year, so that the announcement can be made next year. So, that is how the process will start, and in the year following that we will continue with this process.

How fast it can be done really depends on fiscal space and the availability of funds. So, I really cannot commit to a schedule today, but if you were to look at the previous round when we did the HIP for flats built before 1986, it took more than 10 years to complete.

Er Dr Lee has been following and tracking this very carefully – she tells me 13 years. So, I think residents must have some context. In that previous round it took about 13 years, and I would think, barring unforeseen circumstances, it will take more than 10 years to complete this batch of 1987 to 1997 flats as well.

On the large-scale town-wide projects, under the CIPC, they were designed specifically for public housing estates. For private estates, we have the EUP, and we are happy to see if more can be done and whether the scope of works in the EUP can be enhanced.

Mr Zaqy Mohamad: I thank Er Lee for her questions. I will start off with the contracting of local suppliers. I mentioned yesterday, that one of our goals is to help our local contractors grow, and securing Government projects is one way to grow. But I want to stress again that we are also a signatory to the WTO Agreement on Government Procurement. So, we cannot give projects away to locals and favour locals over foreign companies.

12.45 pm

Today, we also have local companies who are winning large Government projects. For example, Lum Chang Building Contractors won the design and construction contract for a section of the north-south corridor tunnel. This was awarded in December 2018. The awarded value is about $800 million, much higher than the $400 million threshold that the Member cited. Woh Hup had also won in September 2017 the construction of Kim Chuan depot's extension to cater for circle line 6, which was about $1.21 billion. To a certain extent, I think there is opportunity for local firms to win large contracting projects.

Our Price Quality Method (PQM) has also shifted towards focusing more on quality as opposed to cost. Our local firms need to build up capability to address this portion in terms of quality, track record and experience. This is where I think they can develop. That is why if you look at the announcements yesterday, for example, we announced the Build SG Transformation Fund. We hope to upskill and build up capabilities for our local firms. This is something we will look closely at. I hope that the local firms can also do their part and build up capabilities to address these opportunities.

Specific to the Inter-Agency Coordinating Committee (IACC), I am glad that the Member has also noted the changes that we have done to IACC. For instance, they now meet monthly. For issues such as service diversion, Temporary Occupation Permit (TOP) and Certificate of Statutory Completion (CSC) that are delayed, please raise them to the IACC, which will see how best to assist. Certainly, what we want to try to do is to facilitate and help to bring closure to some of these projects as soon as possible.

The Chairman: Mr Alex Yam, would you like to withdraw your amendment?

Mr Alex Yam (Marsiling-Yew Tee): Mr Chairman, please allow me to thank Minister Lawrence, Minister Grace, Minister Desmond, Minister of State Zaqy and Senior Parliamentary Secretary Xueling for listening intently to us and considering seriously our suggestions. We do wait eagerly for MND to implement promptly some of these measures. Therefore, Mr Chairman, I beg leave to withdraw my amendment.

Amendment, by leave, withdrawn.

The sum of $2,494,963,300 for Head T ordered to stand part of the Main Estimates.

The sum of $7,848,052,800 for Head T ordered to stand part of the Development Estimates.