New Growth and Transformation Scheme to support alliances of firms across the built environment sector

THE government will enhance support to drive transformation in the built environment sector through a scheme which will support alliances across the value chain, said Minister of National Development Desmond Lee on Thursday.

Speaking at the Committee of Supply debate, he said that the new Growth and Transformation Scheme (GTS) differs from existing schemes as it will support alliances of firms - instead of individual companies - such as developers, builders, consultants and sub-contractors.

The GTS will also support firms in improving capabilities instead of completing specific projects, which can result in contractors operating at very thin margins to fulfil short-term targets, he pointed out. The scheme will be launched in the second half of this year.

Each alliance will need to develop at least a three-year business and transformation plan showing how the alliance will increase productivity using the Design for Manufacturing and Assembly and Integrated Digital Delivery technologies. He said: "(The alliance) should also seek to achieve sustainability targets, build better capabilities, develop the workforce, and improve business growth and strategic collaboration."

These efforts to beef up productivity come as the government is reviewing foreign manpower levers, including the reduction of the Dependency Ratio Ceiling (DRC) for the construction industry.

In his speech, Mr Lee also reiterated the need to keep public housing inclusive for all Singaporeans, including in prime areas - such as the Greater Southern Waterfront - so that lower-income households can live in these estates too.

"We will design and introduce a whole new housing model to keep new HDB flats that we will build in these areas affordable for young families," he said, adding that this could mean additional subsidies on top of those already available for build-to-order (BTO) flats.

Given that these flats could also reap more capital gains when sold on the open market vis-a-vis other HDB flats, the government "may need a way to recover some of the extra subsidies provided for flats in prime locations", Mr Lee went on to say. Possible ideas mooted during engagement sessions include a longer minimum occupation period, restrictions on renting such flats out or ring-fencing the pool of subsequent resale buyers. Still, he acknowledged that such measures could also create complexities - such as when homeowners who run into financial trouble need to sell their flat.

"It is a balancing act, and we are studying the possibilities carefully. We will continue to engage Singaporeans to find the right balance before announcing more details," he added.

In his speech, Mr Lee also touched on how the Ministry of National Development (MND) is planning to make the HDB flat-buying process more convenient and seamless.

For starters, HDB's eligibility assessments for flats, loans and grants will be combined into a single online application via the HDB Flat Portal. Presently, buyers are assessed separately for these three components.

The outcomes will be sent to applications in a single document, the HDB Flat Eligibility letter, which will notify applications of their eligibility to buy a new or resale flat as well as the quantum of HDB housing loan that they qualify for.

Other new features to be rolled out on the HDB Flat Portal include a platform to guide new flat buyers as well as a loan-listing service, which will enable prospective home buyers to apply for loans from participating financial institutions directly through the portal.

Separately, HDB will pilot an alternative Joint Singles Scheme (JSS), allowing single tenants to apply for public rental flats without having to find a flat mate first, as is the case for the existing JSS. A social service agency will be tapped as the operator to manage these flats and the flat-sharing arrangements.

On Singapore's Green Plan, the network of park connectors and island-wide trails will be expanded, Mr Lee said.

Two more corridors will be created - the 18 km Eastern Corridor which will link East Coast to Pasir Ris (via Bedok Reservoir) and the 34 km Central Corridor that will link Woodlands to the city centre.

In addition, two new coast-to-coast trails will be created, a 25 km Northern Trail, running from Khatib Bongsu to Sungei Buloh, and a 62 km Southern Trail from Changi Beach to Tuas (via Singapore Botanic Gardens).

In total, over S$315 million will be channelled over the next few years towards Singapore's plans to develop new parks, redevelop existing parks as well as expand and enhance the park connector network and recreational routes.