HDB SHOPS (Deferment of rental increases)

Mr Ng Kah Ting asked the Minister for National Development, in view of the current recession resulting in poor business particularly in the Housing and Development Board shops, if he will tell the HDB to withhold the rental increases until such time when the economic situation improves.

Mr Teh Cheang Wan: Mr Speaker, Sir, the first and only rental increase exercise by the HDB was in 1983 when the rentals of premises let out as far back as the 1950s were raised to the 1980 level. This 1980 level is still below the current market level.

However, after considering the numerous appeals by PAP MPs during the recent Parliamentary sittings, and in view of current poor business conditions, I will ask the HDB to defer the final stage of the rental increase due in September 1985, for one year to September 1986.

Encik Yatiman Yusof (Kampong Kembangan): Mr Speaker, Sir, in some old estates there is a tendency for the younger income earners to move out into the newer estates.

Mr Speaker: What is your supplementary question, Encik Yatiman?

Encik Yatiman Yusof: Can the Minister explain whether in old estates where most of the residents are old people living on pensions and so with lower purchasing power be able to enjoy a lower price of food if the rentals are lower for shops in such estates?

Mr Teh Cheang Wan: Mr Speaker, Sir, in Singapore we have a free market economy and the prices of the goods in the shops are determined by shopkeepers. The rental is, of course, one of the elements but I do not think the rental is the sole factor in determining the prices of the goods.