Neighbourhood Centres Selected for Revitalisation of Shops Scheme and Possibility to Increase Funding Given Rise in Costs

11 Mr Ang Wei Neng asked the Minister for National Development (a) whether he can provide an update on the number of neighbourhood centres that have been selected for Revitalisation of Shops (ROS) scheme since March 2024; and (b) whether HDB will consider increasing the funding of ROS given the rapid rise of construction costs in the last three years.

The Senior Minister of State for National Development (Ms Sim Ann) (for the Minister for National Development): Sir, 11 Neighbourhood Centres have been selected for upgrading of common areas under Batch 8 of the Revitalisation of Shops (ROS) Scheme. HDB has informed the relevant Town Councils and merchants' associations of the selected sites in March this year.

In 2023, we had increased the Housing and Development Board's (HDB's) co-payment share for the main ROS upgrading cost from 70% to 85% to reduce the co-payment borne by shop owners from 20% to 5%. We also introduced additional funding support for optional works at the shopfront.

There are currently no plans to change the ROS budget. We will, however, continue to monitor the situation and refine our schemes as needed.

Mr Speaker: Mr Ang Wei Neng.

Mr Ang Wei Neng (West Coast): Thank you, Speaker, and also to the Senior Minister of State for the comprehensive reply. I have three supplementary questions.

Firstly, for those 11 Neighbourhood Centres that have been informed that they have been selected, when can we start implementing and asking the shop owners to vote? So far, I have not gotten a response from HDB on this portion.

Secondly, construction costs have increased, and we also note that the subsidies for the shop owners have increased but that the total budget allocated for the ROS has not increased significantly, despite the construction cost increase over the last three years by, maybe up to 50%. We noted that there is a bit more grants for the shop front, but the total construction cost still remains an issue.

Thirdly, for some of the shop owners, if they find that they have difficulty paying even the co-payment, is HDB prepared to allow them to pay by instalments?

And lastly, if the ROS is successfully implemented and some of the shop owners refuse to pay, what is the recourse that HDB has?

Ms Sim Ann: Sir, first of all, we will work as quickly as possible with the local working committees which need to be set up in order to effect the ROS. From my understanding, quite a few local working committees have already been set up, including in Mr Ang Wei Neng's area. We also seek the advisors' support for encouraging the local merchant associations to work closely with us because their inputs are important.

As for costs, I have mentioned that we will continue to monitor the situation and see if any review is required, although, for now, the plan is to keep to the budget.

Also, in terms of the Member's question about what happens if the merchants do not pay, in 2023, we amended the Housing and Development Act because of some policy changes under ROS. One of the changes that we have made is to empower HDB to collect the arrears or to collect the amount for the upgrading from shop owners who did not pay and to treat it as a form of arrears. This is something that the merchant associations would welcome because, in the past, it was the merchant associations who had to collect from these shop owners.