Creating a Distinctive and Total Life-style City

1. Minister (National Development) explained how we can make Singapore a distinctive city.

2. During the Lunar New Year holidays this year, I was invited to many homes. My hosts were quick to show off their stylishly renovated houses, new furniture, just-acquired paintings, the trendiest home accessories. Every home was decked with flowers and festive décor, good food and good company. I could really feel that ‘spring’ was in the air. My hosts had gone to great lengths to make us feel comfortable. They were obviously very proud of their home.

3. In the same way, Singapore is our home and we are proud of it. We want to make Singapore attractive and comfortable for all who live in or visit our city. And for us Singaporeans, this city is our only city. This is where our home is. We owe it to ourselves to make it the best home. Some visitors will want to stay here for a while, to enjoy what we have to offer. Others may even want to make this their home.

4. This pride is evident from the responses received from some of the 25,000 visitors to the “Shaping Singapore” exhibition, and the new City Gallery, at the Urban Redevelopment Authority (URA) building. Both exhibitions tell the story of Singapore’s transformation over the last 30 years, and give a glimpse of what the future holds. What struck me, as I flipped through the comments in the guest book, were the repeated phrases: “I love Singapore”; “I am proud to be a Singaporean,” “I am proud of my country and the development over the years.” Even visitors expressed support. A visitor from Canada wrote: “Makes me wanna spend the rest of my life here. Truly a place where you can live, work and play!”

5. Looking ahead, how should we develop Singapore to make it an even more attractive place? At the launch of the “Shaping Singapore” exhibition, PM mentioned the X-factor. The X-factor is that something extra that gives a place character, vitality and uniqueness. It is evident in both a city’s hardware (which is its infrastructure, buildings, and public places), and software (such as signature events, a vibrant arts and culture scene, and an overall environment of energy and creativity).

6. Cities around the world – London, Hong Kong, Shanghai, Dubai - are sparing no effort to differentiate themselves from the competition. You may have read the reports in the Straits Times and Business Times on a US$21 million artwork called “The Gates” at the Central Park in New York City. 7500 gates made from panels of saffron fabric lined almost half of Central Park in New York City.

7. A frivolous waste of money? But residents say it brings “a lot of joy back to the city”. It attracted some 4 million visitors to the Park, including 1.5 million visitors from out of town, and brought in an estimated US$254 million in revenues for hotels, tourism outlets and other services in New York City. Mayor Michael Bloomberg said: “ we had to go out for big, bold projects that would set our city apart. We showed the world that New York is safe and exciting."

8. In Singapore, we have been careful and prudent in our developments, and will continue to do so. We should not go for grandiose buildings and extravagance to attract attention. But Singapore cannot continue developing its city in the usual way. We need to recognize the economic and social benefits of a distinctive city, and be bold to invest where wider benefits can be reaped.

9. The X-factor cannot be decreed into existence but needs to evolve over time. Nevertheless, we can put in place a suitable environment to facilitate this evolution. This requires greater boldness and experimentation by planners in urban development; high standards in architecture design and building from industry; and an atmosphere that nurtures creativity and excellence among our people.

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Downtown at Marina Bay: A Total Lifestyle Destination

10. One such area where we can encourage boldness and creativity, and develop a total lifestyle environment, is in the development of the Downtown at Marina Bay. The Bay area, with its large tract of unencumbered land and prime waterfront location, provides a unique opportunity for us to create something truly special.

11. The Downtown at Marina Bay (DTMB) is envisioned to be an integrated live-work-play environment. There will be prime office space, quality housing, shopping, dining, the arts, entertainment and recreation. A new waterfront promenade and pedestrian and vehicular bridges will connect all these attractions like a necklace around the Bay.

12. An exciting attraction for the area will be the Second Botanic Gardens. This large park will be the “Central Park” in the New Downtown for all to enjoy. It will be strategically located, easily accessible, and well integrated with its surroundings. It will create a unique green-blue lung for the New Downtown, and a respite from the hustle and bustle of city life. It will be a legacy for future generations.

13. As the Development Agent for Downtown at Marina Bay, URA will work with agencies and industry professionals to realize the potential of this area. And plans are being implemented even as we speak. Just a week ago, I announced the launch of the tender for the Business and Financial Centre (BFC). The BFC will be a key milestone in the growth of the New Downtown. Together with the completed Esplanade, One Fullerton and One Marina Boulevard, and upcoming developments such as One Raffles Quay and The Sail@Marina Bay, the Downtown at Marina Bay looks set to become an exciting venue and a signature image of Singapore to the world.

Rejuvenation of Orchard Road

14. Another opportunity to create that X-factor is in Orchard Road. The vision for Orchard Road is for it to be one of the greatest shopping streets of the world, a pulse for fashion and all things hip and happening.

15. Great buildings contribute to a great street. To encourage developments along Orchard Road that support its vision, we will be implementing several initiatives.

16. URA will relax guidelines and grant Gross Floor Area (GFA) incentives to encourage the refurbishment of existing buildings. For example, GFA incentives will be given to encourage more buildings to create dynamic facades, such as that in Wisma Atria. URA will also relax guidelines and grant incentives to encourage buildings to integrate with adjacent developments to provide better connectivity between buildings.

17. I am also pleased to announce that an inter-agency commission, the Orchard Road Development Commission, will be set up to review development proposals for quality and innovative projects along Orchard Road. URA will head this Commission, with representatives from the Singapore Tourism Board (STB), Land Transport Authority (LTA) and other agencies.

18. The Development Commission will support projects that contribute to making Orchard Road a distinctive place. These projects must offer refreshing business concepts and interesting architecture. They must enhance the surroundings through public spaces and facilities that promote vibrant street life, arts & culture, and good pedestrian linkages. Developers whose projects contain these qualities will be granted incentives and allowed to deviate from current planning parameters.

19. The Development Commission will also consider proposals for the rejuvenation or redevelopment of existing buildings in Orchard Road beyond their Master Plan plot ratios. Additional GFA can be granted for worthy projects that push the boundaries or create new innovative products that add value to our city. URA will be announcing details of these initiatives.

20. To encourage new developments along Orchard Road, we will be placing two sites on the Reserve List in March 2005. One is a commercial site at Orchard Road / Paterson Road, and the other at Orchard Road / Killiney Road. There will also be 2 short-term leased parcels at Orchard Road (one next to Faber House and one next to Orchard Building). Details will be released by STB shortly.

21. The Orchard Road enhancement works will also involve upgrading of the pedestrian mall to enhance the pedestrian and street experience and make Orchard Road freely accessible to all. Further, when building owners undertake major redevelopment or upgrading works, these buildings will be required, under BCA's Building Control Regulations, to comply with the requirements in the Code on Barrier-Free Accessibility (BFA) in Buildings.

Appreciating Good Design

22. To successfully develop the Downtown at Marina Bay and the Orchard Road, the Government is prepared to experiment and move decisively.

23. However, there is a need for our people to embrace design excellence and quality as a way of life. Whether it is a watch or a car, a chair or a dress, good design creates value. Why are people prepared to pay thousands for a well-designed Swiss watch when they can pay just $50 for a simple quartz watch that tells the time just as accurately?

24. And so it is with well-designed buildings. The pursuit of design excellence, quality and innovation in a built environment is key to the creation of an attractive city. Whether it is an airport, a theatre, a civic place or a private building, a quality and well-designed development will add value to the environment, and reflect the values of excellence and creativity in its people.

25. URA will contribute $3 million to be used over the next three years, to kick-start a programme, starting this year, to co-sponsor an Architecture and Urban Design Promotion Programme with the private sector. With these efforts to encourage greater creativity, I hope to see greater awareness of good design, which will eventually translate into more outstanding buildings and better public spaces.

26. But creating a distinctive Singapore is not just the job of city planners. It requires a shared vision and the concerted effort of all Singaporeans to strive for that something extra. Only then can we create both the hardware and the heartware for an excellent city that provides a total life-style environment.

Land Use Flexibility

27. Part of the effort to develop a distinctive city and nurture greater creativity and enterprise must come from improvements in our processes and policies. One such area is our landuse policies.

28. There is increasing demand for greater flexibility in landuse. As businesses evolve and demands change, there have been requests for the introduction of new uses on sites, or the integration of activities within a site. For instance, we have earlier this year, allowed non-farm uses such as cafes, shops, visitor centres and farm-stay facilities, on farmland. This is in response to farm owners’ requests.

29. However, allowing greater flexibility in land use brings with it certain trade-offs. Greater flexibility in land use means less certainty and transparency, and could drive land prices up.

30. There is concerned that allowing recreational uses on farmland may affect the livelihood of bona fide farmers, as they may be priced out of their businesses with higher farmland prices. He has a point. But I want to assure him that we have taken measures to minimize this impact.

31. We have imposed maximum caps for non-farm uses on farmland. At least 70% of the land area must be used for agricultural production. Land set aside for commercial uses will be charged commercial rates. These guidelines ensure that bona fide farmers are not unduly affected.

32. The farm policy highlights a broader dilemma our city planners have to deal with on a daily basis. In adapting to new business models and needs, we relax our guidelines and regulations to provide flexibility and room for innovation, but invariably there will be an impact on others.

33. This is a fine balancing act, and one that will become increasingly complex and contentious as we seek to develop a more distinctive Singapore within this small city-state of ours. Not easy but we just cannot afford to stand still. We will have to ensure that our land use policies are constantly updated to stay relevant.

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Property Market

34. I shall now move on to the request for the Government to take steps to stimulate the market.

35. The property market has undergone a major correction since the heydays of the property boom. With the onslaught of the financial crisis, the 9-11 attacks, and SARS, prices have fallen sharply from their peak in the mid-1990s. However, the market appears to have stabilized and is showing signs of recovery. The prices of private residential properties increased by about 1% in 2004, while rentals of office and shop space increased by 3.5% and 3.7% respectively in the same period.

36. The Government has taken measures to stabilize the property market in the past few years. We suspended the Confirmed List for the Government’s Land Sales Programme since Oct 2001 and have been releasing land only via the Reserve List. We removed some anti-speculative measures, such as the income tax on gains from selling properties within 3 years of their purchase. We introduced the Deferred Payment Scheme (DPS), which effectively means an initial cash downpayment of only 10%. We allowed CPF monies to be used to pay for up to half of the 20% down-payment. This further improved the financing for private home purchasers.

37. The question is whether we should do more, when the property market appears to be recovering. The Government has always sought to ensure stability in the property market. A stable property market is important in providing certainty to investors, businesses and homeowners. Whether it is through the Government Land Sales Programme, or other financial measures on property purchases, the aim is to moderate property swings due to rampant speculation or sudden disruptions. However we should not intervene in the market more than is necessary. To do so would distort the market, introduce rigidities and make the property market less robust.

38. It has been suggested that making public, information on rentals and rental transactions can help investors, homebuyers and other players in the real estate sector make informed decisions.

39. Currently, data on rental transactions for private residential, commercial and industrial properties is available to the public through URA’s property portal, the Real Estate Information System (REALIS). Such information is aggregated by street or postal district level. Information on rental transactions for individual units is provided by property owners to the Inland Revenue Authority of Singapore (IRAS), specifically for tax purposes. IRAS is not at liberty to disclose such information without the permission of the owners.

40. As it stands, the information provided in URA’s REALIS is sufficient to help investors, homebuyers and other players in the real estate sector make informed decisions.

Car parks and Heavy Vehicle Parking

41. Finally, I shall address members’ queries on carparks. On the concerns over parking of high roof vehicles, HDB multi-storey carparks are able to accommodate all motorcars and most light-goods vehicles. High-roofed vehicles which are unable to enter the multi-storey carparks are likely to be bigger vans and minibuses and other heavy vehicles. These should be parked in designated heavy vehicle parking areas.

42. It has been pointed out that some vehicle owners just rely on one bus or one van to earn a living, and allowing one such vehicle to be parked near where the owner lives would be most convenient to them. However, allowing many separate individuals to do so has a cumulative effect. It will result in many heavy vehicles being parked at residential places and affect residents’ amenity and safety. That is why we decided to locate all new heavy vehicle parks away from residential areas. Parking facilities for such vehicles are provided in factories and purpose-built heavy vehicle parks near work places.

43. As for adapting the in-vehicle unit (IU) to charge for parking, I am pleased to inform the House that both URA and HDB are already working with LTA to use the current Electronic Road Pricing (ERP) in-vehicle unit (IU) for parking purposes. HDB has successfully implemented the ERP Parking System at 15 car parks. HDB plans to roll out automated parking systems in more HDB carparks serving the Town and Neighbourhood Centres, where there is a high turnover of short-term parking. More HDB and URA carparks will adopt ERP or automated parking systems when it is feasible and cost effective to do so.

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