President of REDAS,

Mr Kwee Liong Keng,

Distinguished Guests,

Ladies and Gentlemen,

Good evening.

Economic Growth and Property Market Recovery

1. As 2006 draws to a close, there is a spirit of celebration and optimism in the air. Underlying this upbeat spirit is the sense that it has been a good year. In fact, the economy has performed well. Our GDP has grown by 8.6% in the first 3 quarters of 2006. Many jobs are being created as a result of this strong economic showing.

2. The momentum is driving growth in all sectors of the property market. Demand is strong in the private residential market. With about 6,400 uncompleted private residential units sold in the first 3 quarters of 2006, take-up looks set to exceed the levels set in 2005. In the office market, demand for office space grew by 222,000 sqm in the first 3 quarters of 2006, almost the growth for the whole year of 2005. The retail sector has also witnessed some exciting projects such as VivoCity, the largest retail development in Singapore. For the hotel sector, the Average Occupancy Rate in the first 10 months of 2006 was 85%, with occupancy rate reaching 88% in Oct 06.

3. Going forward, the recovery of the property market is likely to be sustained in 2007 with the favourable economic conditions projected for next year. MTI has forecasted that Singapore's GDP will continue to grow by 4 – 6% in 2007, which will underpin continued growth in the private residential, office and retail property sectors. STB also expects the strong growth momentum for the tourism sector to continue next year. This will have a positive impact on the hotel and retail sectors. There is indeed cause for good cheer.

Distinctive City, Home For Singaporeans

4. But even as we enjoy this strong performance, we have to continuously ensure our long-term competitiveness and economic survival. To differentiate ourselves in the world, we need to build a distinctive city that is not only attractive to tourists, talents and investors, but is also a home which Singaporeans can be proud of.

Architecture and Design Excellence

5. The pursuit of excellent architecture and urban design is one way we can build a distinctive city. The bold and imaginative designs of the Marina Bay Sands Integrated Resort and the Orchard Turn development have captured the imagination of many and strengthened the branding of our city. To encourage good architecture and design, the Government has put in place various incentives and funding schemes. We hope that enlightened developers, many of whom are in the audience tonight, will play an active part in creating a vibrant and exciting cityscape for Singapore.

City-in-a-Garden

6. Another way in which we can differentiate ourselves from our competitors is to transform our Garden City into a “City-in-a-Garden” – from a city with pockets of greenery, into a city nestled within greenery. Through the three signature gardens at Marina Bay; the park connector network of green corridors that links up our major parks; and our roof-top, façade and vertical greening efforts, we are gradually translating our vision into reality. This will be complemented by the ABC Waters Programme under PUB, which stands for Active, Beautiful and Clean Waters, which will transform our drains, canals, rivers and reservoirs into green, vibrant and beautiful waterbodies for active enjoyment. Our greens and waters will not only enhance our environment, but also create a unique living experience in Singapore.
Green Building Technologies

7. The use of green building technologies is another way to enhance our living experience. While we embark on the physical transformation of our city, we should ensure that our development is carried out in a sustainable manner. It is not about going green for the sake of going green. We believe that it will bring real tangible benefits to building owners and users. Studies in the US have shown that water savings of up to 30%, and energy savings of 20 – 30% is possible. Over a life cycle, Green Mark buildings are more cost effective. People living and working in green buildings enjoy improved indoor environmental quality as well. All of these will allow green developments to command a price and rental premium over “non-green” developments.

8. BCA launched the BCA Green Mark Scheme in 2005 to promote the use of green building technologies and designs. Since then, 34 buildings have been Green Mark certified. To further encourage the adoption of the scheme, I am pleased to announce three new initiatives.

Public Sector Taking the Lead in Adopting the BCA Green Mark Scheme

9. First, the public sector will lead by example in adopting the BCA Green Mark scheme. To-date, the New National Library, Republic Polytechnic, Nanyang Polytechnic and Tan Tock Seng Hospital have received the top “Platinum” Green Mark award. BCA is also working closely with the relevant agencies to make the new People’s Association Headquarters, the new Alexandra Hospital and the Marina Barrage exemplary Green Mark projects.

10. Going forward, the Government will require all new public sector buildings and those undergoing major retrofitting works to be Green Mark certified. HDB, the largest housing developer in Singapore, will have all new public housing certified with the BCA Green Mark with effect from January 2007.

11. With the public sector setting an example and taking the lead, we hope that the private sector developers will follow suit.

Green Mark Incentive Scheme (GMIS) for Private Sector

12. Secondly, MND is setting aside $20 million over the next three years for a new scheme, called the Green Mark Incentive Scheme. Under the scheme, new and retrofitted buildings with a GFA of more than 5,000 sqm that achieve the “Gold” Green Mark award will be given a cash incentive of up to $3 per sqm of GFA, subject to a cap of $300,000, or 0.2% of the construction cost, whichever is lower. For those that achieve the top “Platinum” Green Mark rating, we will provide an incentive of up to $6 per sqm of GFA, subject to a cap of $3 mil, or 0.4% of the construction cost, whichever is lower. The scheme will come into effect immediately.

13. With widespread adoption of the BCA Green Mark scheme, we hope to build up a critical mass in the use of green building technologies and achieve better economies of scale in the use of green building technology.

Building Up Industry Capability Through Intensified R&D

14. The third initiative is to enhance the industry’s capability in green building technologies. My Ministry has set aside $50 million over the next five years for the new “MND Research Fund for the Built Environment”. The MND Research Fund is to intensify R&D efforts in green building technologies and energy efficiency. The MND Research Fund will request for proposals in January next year from all quarters, be they from public agencies, research institutes, private sector or members of the public.

Conclusion

15. The above initiatives demonstrate the Government’s commitment towards green building technologies. We hope to see more developers taking the initiative to develop green buildings in Singapore. As the representative of real estate developers, REDAS can play a critical role in adopting and promoting green building technologies to your members. As developers, you have a responsibility in ensuring the environmental sustainability of our city while pursuing your economic objectives. The vibrant property development market provides ample opportunities to make use of the incentives and create a quality living environment for Singaporeans.

16. Our city is under-going an exciting transformation. In our journey towards a vibrant and distinctive city, REDAS can make a difference by shaping the physical landscape of our future. You can leave a lasting legacy through your projects. Make them icons that we can take pride in.

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