$8.5b to be spent to help remake S’pore

Source : Business Times - 7 Feb 2009

THE government will spend $8.5 billion to revamp Singapore’s HDB estates and develop the commercial nodes of Marina Bay, Jurong East, Paya Lebar and Kallang.

Some $2.9 billion will be spent on essential infrastructure to pave the way for future development at Jurong East, Paya Lebar and Kallang - three regional hubs earmarked for development in the Urban Redevelopment Authority’s 2008 Master Plan.

The government will pump in another $1 billion for infrastructure works at Marina Bay over the next 10-15 years.

As for HDB estates, National Development Minister Mah Bow Tan told Parliament: ‘We have spent $2.4 billion over the past five years on various upgrading programmes and we will almost double it, with another $4.6 billion over the next five years.’

Various government agencies will participate in the development of the three regional hubs.

At Jurong, the Land Transport Authority will upgrade Jurong East MRT station and redevelop the bus interchange, while JTC will expand the International Business Park and the Public Utilities Board will transform Jurong Lake for more leisure activities. The Health Ministry will build Jurong General Hospital.

At Kallang Riverside, new infrastructure will open up the area for future waterfront developments.

And at Paya Lebar Central, the Circle Line MRT and Paya Lebar MRT interchange will be operational in 2010, and the new Geylang Serai Market will be completed this year.

But the bigger price tag will be for remaking HDB estates. Rejuvenation works for the pilot town, Yishun, have started. Older estates will be rejuvenated through the injection of new flats and residents.

Mr Mah said: ‘Notwithstanding the current recession, we are taking the opportunity to remake our city. In 5-10 years, we will see a new Singapore. We will have a new city, as plans to transform and rejuvenate our downtown and our heartlands take shape.’

Senior Minister of State for National Development Grace Fu said that the government would remain focused on its long-term goal of upgrading the construction sector.

Responding to questions about measures to help the industry during the downturn, she reiterated that the government’s previous announcement that it would award an additional $1.3 billion of small and medium-size public sector contracts - each valued at $50 million or less - this year. Added to small and medium-size projects already planned, this will lift total public sector demand for such projects to $4.8 billion.

‘This is a sizeable 67 per cent increase over the average annual value of small and medium-size government projects awarded in the past five years,’ Ms Fu said.

Works to be brought forward include smaller-scale projects valued at up to $15 million, such as upgrading community clubs, roads, parks and park connectors. Projects of up to $50 million include building new rental flats and indoor sports halls in schools, upgrading hospitals and improving public housing lifts.

The government is also reducing the security deposits for public construction projects from the usual 5 per cent. In general, the deposit will be 1.25 per cent for projects of up to $15 million and 2.5 per cent for projects of higher value.

Mr Mah and Ms Fu said that the government would monitor the property market and the construction industry to see if further action is needed.