1. A number of Members have asked about the 6.5 million population figure and how we can cater to the needs of such a population. I would like to begin by addressing the basic question of why we should prepare for a larger population.

2. The tile of the Budget Speech was ‘Ready for the Future, Ready for the World’. The key messages were that we should prepare for future growth and embrace globalization. Without growth, we stagnate; there will be no future. We have done well over the last 40 years. We started off with very little resources but we built up infrastructure, grew our economy, and improved our social services such as education, healthcare and housing. Our development supported, and was supported by a growing population. Our population was at 1.9 million when we became independent. Today, it is 4.5 million.

3. In our next phase of development, our population is expected to grow further. Two questions Members may ask: “Do we need to grow our population? If so, by how much?” My answer to the first question is “Yes”. If we aspire to become a global city, we need a variety of activities and facilities to cater to different groups of people - from hawker centers to fine dining; from cinemas to theatres and concert halls; from flea markets to high fashion. We will need different housing types, transport modes, recreational options and employment opportunities. We need a critical mass of people to support these activities and varieties. Hence, our population must grow.

4. The second question is then: “By how much?” How many more people should we add, and how many more can we accommodate? Well, we do not have a target population, but we do seek to enable and encourage population growth as far as possible. How a higher population can be accommodated will depend on many factors – our physical constraints, the quality of life we wish to maintain, our success at social integration of immigrants and so on. Major global cities like London, New York, Tokyo and Hong Kong have populations ranging from about 7 million to 12 million. These cities are abuzz with life and vibrancy. They are also crowded, noisy and congested. We should allow our population to grow further in future, but would need to mitigate some of the downsides of big city living.

5. Even second-tier cities in China and India are growing rapidly, attracting talents and investments. An example is the city of Chengdu, which I have visited regularly since 1996. During my first visit, I had found it a drab and dreary city. But today, it is booming and well groomed. I am told that it has the third largest car population in China. Its major shopping street is filled with shops selling international brands. The population of 11 million is very ‘gung-ho' and optimistic about their future. There are many opportunities in Chengdu for our businessmen and property developers. The excellent infrastructure has also attracted many major investors like Intel and Motorola. In certain aspects, the quality of life is just as good as that of Singapore. So, the point is that even the second-tier cities are moving very fast to attract talents and investments. Therefore, we cannot stay still. We have to grow and move forward.

6. How we accommodate a larger population in a comfortable way will depend on how ingenious and resourceful we are. It also depends on how well we welcome and integrate more immigrants into our midst, and the trade-offs we are prepared to make. Ultimately, Singaporeans will have to decide on the Singapore they wish to have.

7. To give an idea of what kind of trade-offs need to be made, and what the impact of a larger population would have on our physical infrastructure, we have asked our land use and transport planners to work with our economic and social agencies to review our Concept Plan 2001. This is the long-term land use plan for Singapore. We have asked them to base it on a population of 6.5 million, a population projection based on current demographic trends. The preliminary findings show that we have enough land to cater to such a population, if we take certain steps to make better use of land. I will elaborate on some of these later.

8. But as Members have pointed out, physical infrastructure alone is not enough. We also need to be mindful of the social impact of a larger population. This is outside the scope of urban planners. But it is a key consideration. Let me reiterate that social integration among old and new citizens is not a new challenge. We have always been an open economy and an immigration society. Over the years, our population has grown, through indigenous birth and integration of new citizens, from just over 1.9 million in 1970 to 4.5 million in 2006. There is no reason why we cannot grow further and remain socially cohesive.

Planning Ahead

9. But we must plan for our physical development ahead of time, and invest in the necessary infrastructure. We need to put in place certain measures now to ensure sufficient land and maintain a quality environment.

Housing

10. First is housing. In terms of housing density, we should be able to meet the needs quite comfortably even with a 6.5 million population, provided we plan our land use carefully. Housing densities will increase and we will need to build taller flats in some places. But we will still ensure that there will be a mix of housing options, for example landed and non-landed properties, to meet different aspirations and preferences. The effects of a denser environment can be mitigated with quality housing equipped with good amenities, greening efforts and clever use of parks and waterbodies for recreation.

11. Our HDB heartlands in particular will undergo a makeover, a total regeneration. Members have expressed concern over the affordability of public housing with a larger population. I want to reaffirm the Government's commitment to support home-ownership for eligible Singaporean households. Member has raised the question of whether speculation in private housing would spill over to public housing. Currently, there is no evidence to support this concern. The prices of all private residential properties rose by 10 per cent. For public housing, the overall HDB Resale Price Index increased by only two per cent in 2006. HDB flats have thus continued to be affordable. In 2006, those who bought flats from HDB used on average around 20 per cent of monthly household income to service their housing loans. This is well below the Debt Servicing Ratio guideline. Most flat buyers service their housing loans entirely from their CPF contributions, without touching their take-home pay. Ensuring affordability of HDB flats and sustaining the quality of the living environment in our estates will remain the key priorities in our public housing programmes going forward. I will elaborate on this later when I speak on HDB housing.

Transportation

12. Another area we need to consider is transport. To meet the greater transport needs within our land constraints, we need to promote public transport usage even more. We do this by providing a well-connected and comfortable public transport system, while at the same time managing the growth in car population through car ownership and usage measures. The Ministry of Transport will be considering these issues when they review land transport policies and plans in the coming year.

Green Buildings

13. The Member has also asked about the promotion of energy-efficient and environmentally friendly buildings. The Ministry of National Development (MND) and the Building and Construction Authority (BCA) have formulated a comprehensive plan to promote a wider adoption of green building technology. The plan comprises regulatory requirements for Green Mark standards, providing incentives, intensifying R&D, as well as raising awareness of efficient building technology.

City in a Garden

14. Another key measure Members have asked about is our plans to create a City in a Garden. We will continue to build new parks, and enhance existing ones, such as the Singapore Botanic Gardens, the East Coast Park and the Horticulture Park. Central to our efforts is the development of three world-class gardens at the heart of Marina Bay. Construction of these gardens will commence this year, and the gardens will be opened in phases starting from 2010.

15. We also plan to increase the total length of our park connectors from 70 km today, to 200 km by 2012. Finally, we will encourage vertical and high-rise greenery in public and private apartments. The greening measures will be accompanied by the transformation of our waterways into attractive recreational destinations. The National Parks Board (NParks) is working with the Public Utilities Board (PUB) on this.

16. All in all, we will spend about $700 million to develop our greenery capital in the coming years. But the greening of our city will require the involvement of the people and private sectors. To this end, we have launched the community gardening programme and other community projects to mobilise wider public support and participation. NParks is also working with the landscape industry to upgrade their capabilities. These measures will help to make Singapore a distinctive “City In A Garden”.

Development of Strategic Areas - Marina Bay

17. On Marina Bay, I am pleased to inform the House that development is well on track, with significant buildings being developed and infrastructure put in place. These include the Marina Bay Sands Integrated Resort, the Marina Bay Business and Financial Centre, the new double helix bridge, and the waterfront promenade. These key developments over the next five years will transform the place into a distinctive business, residential and recreational area.

18. We are already planning ahead for the next phase of development at Marina Bay. This will focus on three new areas. The first is the Central sub-zone adjacent to Shenton Way, which will continue the seamless growth of the existing CBD. Secondly, we will continue the development along the Marina Bay waterfront. Thirdly, we will initiate development southward at the Marina South area to frame the Garden at Marina South.

Existing CBD

19. The existing CBD will not be left behind. We intend to enhance the public spaces within the CBD, improve walkways and street furniture, introduce landscaping and attractive lighting and facilitate the developments of some of the areas. These ensure that the area continues to remain attractive.

Regional Centres

20. Other than the city centre, we will be opening up new areas to bring more jobs and amenities to people living in the suburban estates. One of the immediate plans is to build up the Jurong Regional Centre and the Paya Lebar Sub-Regional Centre within the next 10 to 20 years. Another potential area for development is in Woodlands.

Create night time buzz

21. Some Members have spoken about the lack of nighttime buzz. I agree that a robust ‘Evening Economy’ can make Singapore an attractive 24/7 city.

22. The Government has set up a multi-agency committee, chaired by URA, to improve the range and quality of evening activities. The focus will be in four areas – Orchard Road, Singapore River, Bras Basah.Bugis and Marina Bay.

23. URA will be initiating a consultancy study for two projects at Marina Bay. The first is a ‘Light, Water and Sound show’, using the Marina Bay city’s skyline as the show’s centerpiece. The second is an ‘Aqua Shell’, which is a floating stage for live theatre and musical performances. URA is also exploring the feasibility of innovative ‘Artvertisements’ at Bras Basah.Bugis area. We want Singapore to be a key destination in Asia for round-the-clock excitement in entertainment, shopping and dining, all within a safe and secure environment.

24. As we plan for the long-term development of Singapore, we would also need to address some immediate concerns. One of the issues is the sand export ban and the disruption in granite supply. Let me first explain that we import raw materials for our construction industry from many sources. In the case of land sand, to make concrete, we have been importing it mainly from Indonesia until its recent ban. We have found alternative sources, so it is no longer a major issue. We have also been importing granite from Indonesia, which our construction industry uses to produce concrete. Unlike land sand for concrete and sea sand for reclamation, which Indonesia had banned since 2003, the export of granite aggregates and granite dust is not banned.

25. However, in the last few days, the supply of granite from Indonesia has been disrupted. We understand that the Indonesian authorities have stepped up checks and detained some barges carrying the granite materials to Singapore. Our importers were told that this is to prevent any smuggling of sand, following the recent export ban on land sand. According to the importers, these barges were carrying granite aggregates and granite dust, not sand. They say they have the necessary certificates to prove this. Yet their barges have been detained. On our end, we have verified that there has been no land sand coming in from Indonesia since the ban took effect in early February. All the supply that we are getting is from other sources.

26. We do not know how long these actions will continue. I have informed Minister for Foreign Affairs George Yeo and he has raised the matter with his Indonesian counterpart, Minister Hassan Wirajuda, to seek clarifications on these latest actions by the Indonesian authorities. Minister Hassan told Minister George Yeo that there was no export ban on granite from Indonesia and that he would check what is the reason for the actions being taken that have caused this disruption. Minister for Trade & Industry Lim Hng Kiang has also spoken to his Indonesian counterpart, Minister Mari Pangestu, who confirmed that there is no export ban on granite, and that they are now verifying the situation.

Government’s measures to address supply disruption

27. Meanwhile, to make up for any immediate shortfall in the supply and make sure that work goes on at the construction sites, we are releasing granite aggregates from our stockpile. As part of our on-going efforts to diversify our sources of supply of essential construction materials, we are buying granite aggregates from alternative sources and encouraging the private sector importers to do the same.

28. If the situation continues, I expect that the price of granite aggregates will rise due to the higher transportation costs in bringing in the material from the alternative sources that are further away. As in the case of land sand, the Government as a major developer will work out similar co-sharing arrangements with the contractors and concrete suppliers for existing public sector projects. BCA has briefed the industry associations on the situation and what the Government is doing and is prepared to do to help the industry.

29. We will work closely with the industry to diversify our supply sources of construction materials. Let me assure Members that the Government is closely monitoring the disruption in the supply of granite, and is taking necessary measures to ensure that our construction activities would not be disrupted.

30. Going forward, we must move urgently to adopt more sustainable construction methodologies to reduce our dependence on concrete, and hence the need for granite and sand. This is the best way to ensure that our long term plans to develop our infrastructure and rejuvenate our city will not be derailed. I am confident that this can be done.

Conclusion

31. To conclude, our population will grow, both as a stimulant to, and a result of economic growth. Ensuring that we have enough space and enhancing the quality of our living environment will be important as we do so. We want a Singapore that will not only provide jobs and opportunities, but also a quality of life that other major cities find increasingly difficult to maintain. We can do this by planning ahead, and investing in our future needs now to achieve our vision of Singapore as a liveable and attractive city, even with a higher population.

>>back to top