INCREASED RENTS OF S.I.T. SHOP PREMISES (Enquiry)

Mr John Ede asked the Minister for Local Government, Lands and Housing-

(a) how many tenants of S.I.T. shop premises in the Alexandra / Queenstown area from Redhill Road to Strathmore Avenue are being required to pay increases in rent from 1st June, 1957, and what is the average percentage increase in rent for these premises;

(b) why these increases are being demanded after approximately one year's tenancy only; and

(c) whether he will cause an enquiry to be made into the justification for these increases, and whether, in the meantime, he will give an assurance that these increases will be postponed.

Inche Abdul Hamid: Mr Speaker, Sir, I am informed by the Singapore Improvement Trust as follows:

(a) The number of terrace and shop premises in the Alexandra/Queenstown area which were required to pay an increase in rent was 39 out of the total number of 66 rentals reviewed by the Board of Trustees of the Singapore Improvement Trust. Of the remaining 27 rentals, there were 25 where the rents remained unaltered, and two cases of a reduction of $10 and $25 per month respectively. The average increase in rent was $25, which is equal to a percentage increase in rent of 16.7 per cent. The original rents were based by tender.

(b) It was previously the policy of the Board of Trustees to review all new shop rentals after a minimum of twelve months' tenancy. On first letting, the true market value cannot be correctly assessed, and is therefore only an estimate. After a shopping centre has been established for at least twelve months, a clearer picture can be obtained, and an adjustment is then made either by decreasing or increasing the rentals, having regard to the past experience of the letting demand and the established market value. However, Sir, the Board at its last meeting decided that such a review should be made only after three years.

(c) The Board has discretion to fix rents for the tenancies of shop premises and it is therefore a question for decision by the Board, but, as I have already said, the Board has now decided to review rents only after a period of three years. In this particular case, one year has now elapsed and the review will be after another two years. This is purely a matter for the Board and I do not see any necessity for an enquiry.

Mr John Ede: Mr Speaker, Sir, am I to understand from the Minister's statement that the increases will not now be enforced?

Inche Abdul Hamid: Sir, the increases will not now be enforced, but the decreases will be enforced.