1. Several Members of the House have asked about HDB’s upgrading programmes. I would first like to put the upgrading programmes in perspective.

2. Upgrading programmes complement our home ownership programme by sustaining the value of flats many years after they have been built. They breathe new life into HDB estates by improving the living environment of residents so that they are comparable to newer estates.

3. To meet these objectives, we have different upgrading programmes.

Lift Upgrading Programme

4. In preparation for an ageing society, lift upgrading has been identified as a major priority. The Government has committed to providing lifts that stop on every floor for all eligible blocks by 2014.

5. I can understand Members’ requests to speed up the Lift Upgrading Programme (LUP). However, the pace of lift upgrading depends on the available budget and the capacity of the construction industry. It is a massive programme. The cost of bringing lift upgrading to all the remaining eligible blocks is about $3 billion. The construction industry is experiencing a significant upswing now and we should not exacerbate the situation. Indeed, in our review of public projects to be deferred, we have decided not to postpone the LUP, as we have made a commitment to complete by 2014.

6. I would like to clarify that the Government has already accelerated the LUP from the previous target of 2019 to 2014.

7. There remains about 1,500 blocks to be selected under the LUP. This is a large number and we have to prioritise, but we are on track.

8. HDB will continue to explore new methods and technologies to keep LUP both affordable and available to more blocks.

HIP and NRP

9. In reply to Mr Low Thia Khiang, he is correct that we have introduced two new upgrading programmes, the Home Improvement Programme (HIP) and Neighbourhood Renewal Programme (NRP). They will replace the Main Upgrading Programme (MUP) and IUP Plus. The MUP and IUP Plus have served us well. To-date, over 130,000 flats have been selected for MUP and over 220,000 flats selected for the Interim Upgrading Programme or IUP Plus.

10. The HIP and NRP were introduced in response to feedback to the Forum on HDB Heartware that several MPs and myself led last year. We held many public dialogues to solicit ideas on ways to build more cohesive communities in HDB towns. Residents said they would like more flexibility and consultation in upgrading. Residents also wanted upgrading to remain affordable.

11. And therefore, the HIP is designed to focus on improvements for the flat. It is composed of essential improvements as well as optional improvements, while NRP focuses on block-level and precinct-level improvements.

12. The HIP and NRP will benefit blocks built before 1986 and 1989 respectively. It is estimated that about 300,000 and 200,000 flats will benefit from the HIP and NRP respectively. Survey results have shown strong support for the HIP and NRP.

13. Altogether, about 590 blocks across 58 sites will be offered the various upgrading programmes in FY2007. We will continue to review and monitor feedback on these new programmes to cater to residents’ needs.

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