Review of NUS Business School Researchers' Findings on Property Developers Exchanging Information on Government Land Sales Resulting in Imputed Losses
Ministry of National DevelopmentSpeakers
Summary
This question concerns Assoc Prof Daniel Goh Pei Siong’s inquiry into whether the Ministry for National Development and Singapore Land Authority would investigate findings suggesting property developers exchanged information on Government land sales. Minister for National Development Lawrence Wong responded that the tender process is transparent and competitive, noting that the researchers themselves withdrew claims of insider trading due to lack of evidence. He explained that a review of 103 tenders showed robust competition, with sites receiving between three and 23 bids and over 80 per cent receiving five or more. All sites were awarded to the highest acceptable bidders at prices matching or exceeding independent market value estimates. Minister for National Development Lawrence Wong affirmed that the Government will take enforcement action or withhold awards if there is any suspicion of collusion.
Transcript
27 Assoc Prof Daniel Goh Pei Siong asked the Minister for National Development whether the Ministry and SLA will look into findings by NUS Business School researchers that property developers could be exchanging information about Government land sales which had led to imputed losses amounting to hundreds of millions of dollars due to lower winning tender bids.
Mr Lawrence Wong: The Government adopts an open, transparent and competitive tender process in the sale of sites under the Government Land Sales (GLS) programme. The tender process is transparent to all potential tenderers, with land sale requirements specified clearly in tender documents.
With regard to the NUS study, the researchers themselves have withdrawn any claims of insider trading amongst developers, and said that they could not find any evidence that such activity had indeed taken place. In any case, MND has looked at the 103 GLS tenders awarded during the period referenced by the NUS study. For all of these tenders, multiple bids were received, ranging from three to as high as 23 bids for each site. More than 80 per cent of the tenders had five bids or more. All tenders were awarded to the tenderers with the highest acceptable bids, and these were broadly in line with or higher than independent estimates of the market value of the sites.
In the event there is reason to suspect any collusion or freak result, the Government will take the necessary actions, including closing the tender without award, or take enforcement action should there be any infringement of the law.