BUILDING OF FIRST-CLASS TOURIST HOTELS (Incentives to attract private developers)

Mr Lim Cheng Lock asked the Minister for Finance, in view of the present acute shortage of good first-class hotel accommodation in the Republic which is impeding the development and growth of tourism in Singapore, whether he is aware that the incentives offered to private developers for the projects under urban re-development are not sufficiently attractive for would-be investors, and if he will also consider income tax relief incentives similar to those granted to pioneer industries in order to encourage the building of more good first-class tourist hotels in the Republic.

Mr Lim Kim San: Mr Speaker, Sir, it is still too early to conclude whether the incentives offered to private enterprise for the projects under urban redevelopment are or are not sufficiently attractive. First reports indicate that the projects have generated tremendous interest from investors locally and abroad. The question whether additional incentives are necessary to encourage the development of first-class hotels is being studied by my Ministry.