HDB SHOPHOUSE TENANTS (Temporary rental relief)

Mr Eric Cheong Yuen Chee asked the Minister for National Development whether he will consider granting temporary rental relief to shophouse tenants in Housing and Development Board estates whose businesses are badly affected by Mass Rapid Transit construction projects.

Mr Teh Cheang Wan: Mr Speaker, Sir, the HDB is already offering temporary rental relief to shophouse tenants in Housing and Development Board estates whose businesses are badly affected by Mass Rapid Transit construction projects. The affected shop tenant can opt for priority allocation of an alternative shop at concessionary rental similar to those offered to resettlement cases. Alternatively, the tenant can choose to retain the existing shop and resume business after the project has been completed. In the latter case, he will need to pay only 20% of his current rental during the first six months of the project. Thereafter, he is not required to pay any rental until the completion of the project.

Mr Eric Cheong Yuen Chee (Toa Payoh): Sir, is the Hon. Minister aware that this concession only applies to those who have to move out of the shophouses to make way for the construction of MRT projects? But there are many shophouses that are partially affected by the construction and they do not have to move out. They remain there but their businesses have suffered tremendously because of the construction projects.

Mr Teh Cheang Wan: Sir, for those businesses that have to move out, as I have explained, it means that they are badly affected. For those businesses that are slightly affected, I am aware that these businesses are being inconvenienced. On the other hand, in future, when the MRT project is completed and the shops are facing the MRT station, their business will improve. So this is a case where initially the shopkeepers have to suffer during the period of construction but subsequently when the MRT project is completed, those who run the business there will benefit from the MRT project.

Mr Eric Cheong Yuen Chee: Sir, is the Hon. Minister aware that most major MRT projects take about two to three years to complete? And by that time, those who are adversely affected will be down and out. They will not be able to enjoy the benefits thereafter.

Mr Teh Cheang Wan: Mr Speaker, Sir, on this matter, if the Member of Parliament feels that there are certain shops which are substantially affected, not slightly, by these MRT projects, I would suggest that he write to the HDB and I will ask the HDB to look into these cases.

Mr Jeyaretnam: Mr Speaker, Sir, would the Minister ask the HDB to consider doing away with the tender system for rentals of shophouses and fix the rents according to the needs of the area?

Mr Teh Cheang Wan: Mr Speaker, Sir, this question is totally unrelated to the question asked by the hon. Member for Toa Payoh. However, if the Member submits a fresh question for the next sitting, I will give him an answer.