Ong Ye Kung dismayed by S$52,000 clinic rent bid; HDB to roll out new tender approach for GP clinics
HDB says the bid is a record high in per-sq-ft rent it has received for GP and dental clinics of this size
[SINGAPORE] Minister for Health Ong Ye Kung has expressed his dismay at the S$52,188 bid that a GP (general practitioner) clinic in Tampines received in a tender, which closed in January this year.
In a Facebook post, he said the monthly rental for the clinic – amounting to more than S$1,000 per square metre (psm) – would translate into higher healthcare costs one way or other, and negate the Ministry of Health’s (MOH) efforts to keep the cost of primary healthcare affordable.
“More importantly, higher rental bids do not necessarily translate to the best healthcare that the community needs,” he wrote.
The S$52,188 bid was awarded to Dr Shaun Lum of I-Health Medical Holdings for the unit at Block 954C in Tampines Street 96. Thirteen bids were submitted for the clinic, with the news making waves online over the weekend.
In response to media queries, the Housing and Development Board (HDB) said on Wednesday that the winning bid was significantly higher than the average tendered rent of around $9,800 a month for similar-sized clinics let by HDB in 2024.
“It is also the highest per-square-foot rent that HDB has received for GP and dental clinics of this size to date.”
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HDB noted that all tenders awarded for GP clinics so far are based on tendered price.
“Bids submitted by tenderers, including private clinic operators, are business decisions influenced by various factors including location, shop size, trades and prevailing market conditions. The rental for this Tampines clinic does not set any price requirements for future tenders by HDB, and it also will not affect the rentals that HDB is charging other existing clinics.”
The role of a GP is increasingly important, as our population ages, Ong said on Wednesday.
“The GP is key in developing a relationship of trust with patients, and to guide them towards better health. He or she is the vital link to connect patients to acute hospital care, preventive community care and social prescriptions.”
The minister added that this was why in May, MOH and HDB launched a new tender approach for GP clinics at Bartley Beacon, a Build-To-Order development. Quality of care will account for 70 per cent of the tender evaluation, and rental, 30 per cent, he added.
The unit is a larger unit, about 100 sq m, twice the size of normal clinics, and suitable for clinics that intend to provide multi-disciplinary care and try out new models of care, Ong said.
“Through this price-quality evaluation model (PQM), we can shift the competitive focus away from rental rates to better care models – including preventive care, chronic disease management and mental health,” he said.
“The tender was closed on May 29. I understand from my MOH officers that we have received interesting proposals, with rental bid prices significantly below the Tampines site in psm terms.”
The Tampines clinic was tendered in December 2024 and awarded in March 2025, before MOH embarked on the PQM model, Ong said.
“Going forward, and given the encouraging response to the Bartley Beacon site, we will make the new PQM approach the norm when tendering our GP clinics in our HDB heartlands,” he added. “It will be a meaningful shift, both in improving primary care, and ensuring greater affordability.”
HDB added that the aim of the PQM framework is to ensure that the winning tenderer is focused on delivering accessible, affordable and quality healthcare, while mitigating the risk of rent-driven cost pressures on clinic operators.
MOH and HDB are in the process of evaluating the tender and aim to award it by August this year, HDB said.
“Given the encouraging response, MOH and HDB are looking to extend the pilot to future GP clinics renting from HDB.”
Dr Hisham Badaruddin, whose LinkedIn post on the Tampines clinic last week went viral, told The Business Times that the S$52,188 bid was “not normal”.
He said: “We should nip this in the bud and not encourage this, or else landlords will expect similar rents.”
“Having a PQM tender will help address the needs of patients with chronic diseases, although this may limit the playing field for clinics.”
Dr Lim Kai Hung, a GP who co-founded 57 Medical Clinic, said: “Most GPs would make S$350,000 to S$500,000 a year in revenue. If a clinic is paying S$50,000 a month, they would likely operate at a loss. It is not sustainable.”
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