Speech by Mr Louis Ng Kok Kwang, MP for Nee Soon GRC, at the Second Reading of the Housing and Development (Amendment) Bill (Bill No. 33/2022)
Introduction
Madam, this Bill will make it easier to carry out upgrading works on common areas in heartland shops. This will facilitate works to vitalise our heartlands. I have just three points for clarification on the Bill.
Commercial property upgrading works
My first point is on how HDB will determine if upgrading works on common property fall within the purpose of commercial property upgrading works. This Bill prescribes an admirable purpose for commercial property upgrading works. It says that such works are for “improving or encouraging diversity of local convenience shopping facilities and commercial and community activities.”
They must also support the economic and social well-being and employment opportunities for persons within the precinct. However, it may not always be clear that such works, when proposed, achieve such a goal.
That is why for commercial property upgrading works, the Bill requires the works to be approved by a 75% vote of the owners who will benefit from the works. The owners who benefit from the works are clear where the works are carried out on commercial property. However, commercial property upgrading works are also defined to include works carried out on common property. In this case, it may be less clear who are the owners benefiting from the works who are entitled to vote.
Can the Senior Minister of State confirm that a poll must still be carried out under the new section 77(3A) where the works are carried out on common property? If yes, can the Senior Minister of State share how HDB will determine who are the owners benefitting from works proposed for common property who are entitled to vote? Will this be based, for instance, on geographical proximity to the works proposed or the scale of the works proposed?
Information on purpose of upgrading works
My second point is on the information that will be provided to property owners who are entitled to vote on the upgrading works. As I mentioned earlier, the upgrading works proposed by HDB must be to achieve specific purposes, including improving shopping facilities, encouraging commercial and community activities, and supporting economic and social well-being. In order for the property owners to exercise their vote meaningfully, it is important that HDB provide them with enough information for the owners to determine if these purposes will be met. Can the Senior Minister of State share if information will be provided to owners on how the upgrading works will achieve these purposes, including measurable indicators that HDB will monitor to determine if the purposes are achieved?
Recovery of costs
My last point is on the recovery of costs for commercial property upgrading works. The new section 78(3A) will allow HDB to recover the costs of commercial property upgrading works from every owner of such property and the Town Council responsible for the maintenance of common property. Such recovery can only be done after HDB has completed the works. Can the Senior Minister of State confirm if such recovery is to be done, whether the owners and the Town Council will be kept informed of the likely costs before a poll is taken? Will the owners be kept updated on any changes in the costs? It is not uncommon for construction costs to exceed initial estimates. Given that the recovery of costs is to be done only after HDB has completed the upgrading works, where the cost exceeds initial estimates, can the Senior Minister of State confirm who will bear the excess costs?
Conclusion
Madam, notwithstanding these clarifications, I stand in support of the Bill.
Watch the speech here.